Four in ten Cypriots are experiencing financial difficulties

According to the results of a study by the Financial Wellbeing Institute, presented on 22 June 2026, about 38.4% of the population of Cyprus (almost four in ten people) still fall into the two lowest wellbeing categories. Despite a moderate increase in the overall index, the key pressures on households remain the high cost of living and anxiety about future pension payments.

Index dynamics and population distribution:
The overall Financial Wellbeing Index for 2025 rose by about four points compared with the previous year and reached 54.6 out of 100 possible points. Growth was recorded across all 14 qualitative questions that make up the final indicator. The survey divided island residents into five categories:
— Financially vulnerable: 15.4%
— Struggling: 23.0%
— Financially adequate: 27.7%
— Financially secure: 20.8%
— Thriving: 13.1%

Index pillars and stress levels:
The index is calculated on the basis of three independent criteria with weighted shares: financial resilience (50% weight), perceived security (30%) and stress levels (20%).
— The weakest performance was recorded for the “anxiety and stress” subindex, which fell below the critical threshold of 50 points to 48.8.
— About 49.5% of respondents stated directly that managing their personal finances causes them constant worry, while 45.1% of survey participants admitted that they struggle to make ends meet.

Key risks and the pension gap:
— Inflation and high prices. Rising living costs were identified as the main threat to personal security by 26.1% of respondents, while 48.8% included this item among the three most significant macroeconomic risks.
— Pension expectations. About 45.1% of citizens are confident that they will not be able to maintain their current level of consumption after retirement. The study revealed a serious gap in the population’s financial literacy: on average, respondents believe that the state pension will cover 52.3% of their last salary, whereas the actual replacement rate from Cyprus’s Social Insurance Fund is about 42%.

Methodology:
The survey was conducted by the sociological company IMR at the University of Nicosia in November 2025. The sample included 809 permanent residents of Cyprus aged 18 to 64, selected through random questionnaire sampling. Commenting on the results, the institute’s president, Panayiotis Andreou, stressed the need to introduce targeted government programmes for citizens’ financial education.