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Government Minister Outlines Ambitious Timeline For Comprehensive Pension Reform

by THEFUTURE.TEAM

November 28, 2025

The Minister of Labor, Yiannis Panagiotou, has reiterated the government’s commitment to implement a new, comprehensive, sustainable, and adequate pension system by the end of its current term. Speaking at the 16th Pension Forum hosted by AON, Panagiotou presented a clear roadmap for the reform process and detailed its primary objectives.

Clear Timeline And Legislative Roadmap

The minister outlined a structured timeline for the adoption of the new system. He explained that the initial technical groundwork for revamping the first pension pillar has already been completed with support from the International Labour Organization. In the coming weeks, preparatory reform bills are expected to be submitted to the Parliament. Following their approval by the Cabinet, these proposals will be tabled before Parliament for a vote ahead of the upcoming elections.

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Key Pillars Of The Reform

Highlighting the reform’s strategic objectives, the minister emphasized that the overhaul aims to ensure that the pension system not only meets current needs but is robust enough to secure the future well-being of subsequent generations. The initial phase focuses on upgrading the first pillar, which involves:

Enhancing the adequacy of low pensions provided by the Social Insurance Fund;
Increasing the inclusion of key demographics, particularly working women and mothers;
Modernizing the investment policies of the fund to improve its sustainability, moving beyond sole reliance on public investments.

This upgrade is expected to bolster the momentum of the second pillar, ensuring a dynamic and responsive pension framework.

Linking Wage Levels And Pension Security

Panagiotou drew attention to the critical relationship between wage levels and future pension adequacy. He stressed that employees earning low wages are inherently at risk of receiving correspondingly low pensions, regardless of how pension resources are managed. Without sufficient incomes, sustainable and dignified future pensions remain elusive. The minister also addressed concerns regarding the adverse impact of labor costs on businesses, arguing that short-term burdens lay the groundwork for long-term pension security and broader economic stability. To enable meaningful participation in the second pillar, it is essential that wages remain adequate and support investments beyond daily financial needs.

Ensuring Social And Economic Sustainability

A particularly significant aspect of the reformation is the focus on the middle class, which currently comprises less than 50% of the population by relevant metrics. According to Panagiotou, elevating this percentage to above 60% is crucial for fostering both economic viability and social cohesion in the long term.

This comprehensive approach to pension reform represents not just a fiscal adjustment but an essential investment in the nation’s future stability and social equity.

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Rolls-Royce Raises Guidance As Defense And Power Systems Drive Growth

Rolls-Royce raised its full-year profit and cash flow guidance after reporting stronger-than-expected first-half results, supported by growth across its civil aerospace, defense and power systems businesses.

Underlying operating profit rose 46% year on year to £2.5 billion ($3.3 billion) in the first six months of 2026, while revenue increased more than 24% to £11.3 billion.

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The company now expects full-year underlying operating profit of £4.7 billion to £4.9 billion, up from previous guidance of £4 billion to £4.2 billion. It also raised its free cash flow forecast to £3.8 billion to £4 billion, compared with £3.6 billion to £3.8 billion previously.

Shares rose as much as 6% in early trading before paring gains to trade about 4% higher.

Data Center Demand Supports Power Systems

Chief Financial Officer Helen McCabe told CNBC that orders in Rolls-Royce’s data center power business increased by more than 50% in the first half as operators invested in backup and on-site power systems.

The company has benefited from growing demand for power infrastructure as data center operators expand capacity.

Defense Spending Provides Additional Support

McCabe also said Rolls-Royce expects to benefit from higher defense spending in the U.K. and across NATO countries. She cited the U.K.’s long-term defense investment plan, which provides funding visibility through 2030 and beyond.

“We’ve had very positive initial conversations with the new government,” McCabe said, adding that the company supports its focus on growth, defense and industrial manufacturing.

Turnaround Continues

Chief Executive Tufan Erginbilgic said the company’s transformation strategy continued to deliver results. “Our transformation continues to deliver,” he said in a statement. “We have unlocked new growth opportunities across the Group.”