Overview Of Financial Well-being In Cyprus
The Financial Wellbeing Index for 2025 showed an improvement in the financial health of households in Cyprus, with the index rising to 54.6 points from 50.7 in 2024. Despite the increase, a large share of the population continues to face financial challenges, according to the report published by the Financial Wellbeing Institute.
Persistent Financial Vulnerabilities And The Cost Of Living
The study divides respondents into five financial well-being categories, ranging from financially vulnerable to financially thriving. More than a third of the population falls into the two lowest categories. Of those surveyed, 15.4% were classified as financially vulnerable, while 23.0% were identified as struggling financially.
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Concerns about everyday expenses remain widespread. When asked about the biggest threat to their financial stability, 26.1% of respondents cited the rising cost of living.
Retirement Concerns And Economic Security
Retirement preparedness also emerged as a key issue in the survey. Nearly half of the respondents said they were uncertain whether they would be able to maintain their current standard of living after retirement. On average, participants expected their state pension to replace 52.3% of their final salary.
The report noted that this expectation is higher than the replacement rate provided by the Social Insurance Fund, which is estimated at around 42%.
Targeted Interventions And Strategic Responses
Financial stress remained the weakest component of overall financial well-being, receiving a score of 48.8 points. Commenting on the findings, Financial Wellbeing Institute President Panayiotis C. Andreou said financial wellbeing depends not only on income levels but also on decision-making, retirement planning, and the ability to manage financial uncertainty. The survey was conducted in November 2025 among a representative sample of 809 permanent residents aged 18 to 64.
Supported by Mastercard and carried out in collaboration with IMR at the University of Nicosia, the study highlighted the role of financial education and retirement planning in improving long-term financial well-being.
