The 2025 Financial Wellbeing Index for Cyprus climbed to 54.6 points, yet 38.4% of citizens remain financially insecure as rising costs and retirement anxiety loom large.

Key Metrics of the Financial Wellbeing Index

The Financial Wellbeing Index recorded an improvement in 2025. However, a significant share of the population continues to face financial difficulties, while financial stress remains elevated and concerns about retirement are growing.

The findings of a survey conducted by the Financial Wellbeing Institute, carried out by IMR / University of Nicosia and presented at a press conference on Monday, show that the overall Financial Wellbeing Index reached 54.6 points in 2025, marking an increase of approximately four points compared to 2024.

Despite this positive trend, the survey indicates that 38.4% of Cypriots remain in the two lowest categories of financial wellbeing. Specifically, 15.4% are classified as “Financially Vulnerable” and 23% as “Financially Struggling”. In contrast, only 33.9% fall within the two highest categories, classified as “Financially Secure” or “Financially Prosperous”.

Persistent Financial Stress and Anxiety

Financial stress remains the weakest dimension of the Index. According to the findings, nearly one in two citizens (49.5%) report that financial issues cause them stress and anxiety, while 45.1% say they struggle to make ends meet.

Analysis of the Index’s individual pillars shows that Financial Resilience is the strongest dimension, scoring 57.4 points, followed by Perceived Financial Security at 53.9 points. By contrast, the Stress and Anxiety pillar remains below the 50-point threshold, recording a score of 48.8.

Concerns About Retirement Preparedness

Particular interest arises from the findings related to retirement preparedness. Nearly half of Cypriots (45.1%) state that they do not believe they will be able to maintain their current standard of living after retirement.

At the same time, citizens estimate on average that the state pension they will receive will amount to 52.3% of their final salary, while the actual replacement rate provided by the Social Insurance Fund is estimated at approximately 42%.

Rising Cost of Living as the Greatest Threat

Cost of living remains the biggest threat. The rising cost of living emerged as the most significant financial concern among citizens. A total of 26.1% of respondents identified the increased cost of living as the greatest threat to their financial security, while nearly half (48.8%) ranked it among the three most important financial challenges they face.

Presenting the survey findings, President of the Financial Wellbeing Institute, Dr Panayiotis C. Andreou, noted that financial wellbeing is not solely about income levels, but also about citizens’ ability to make informed decisions, plan for the future and face financial challenges with confidence.

He also highlighted the need for targeted interventions in the areas of financial education, retirement planning and strengthening household financial resilience, noting that the continuous monitoring of such indicators is an important tool for policymaking.

Source: CNA(ΚΥΠΕ)