Cyprus is getting richer — but the elderly are getting poorer: what the showcase of economic success is hiding

At first glance, Cyprus’s social situation looks better than the EU average. In 2025, 17.1% of the population was at risk of poverty or social exclusion, compared with 20.9% in the EU. Child poverty stood at 14%, compared with 24.3%.

But a different picture lies behind the positive statistics. The risk of poverty reached 33.7% among people over 65 and 33.8% among people with disabilities. These figures are cited by the European Commission in its report on Cyprus, published on 3 June 2026.

After deteriorating in 2025, the number of people at risk returned to roughly its 2019 level. This takes the country further away from its 2030 target of reducing this group by at least 10,000 people. The exception is children: their number in the at-risk group fell by 12,000.

The elderly have become the main losers

Among people over 65, the risk of poverty rose from around 24% in 2021 to 33.7% in 2025. The EU average is 18.8%.

The European Commission links the deterioration to low incomes and the rising cost of living. Older people with disabilities are particularly vulnerable: among them, the rate reaches 42%.

Women over 65 also face the risk more often than men — 37.1% compared with 29.8%.

Pensions replace just 41% of previous earnings

One reason is the low level of pension payments. In 2024, the income replacement rate in Cyprus was 41%, while the EU average was 60%.

The pension payment gap between men and women reached 29% in 2025.

Against the backdrop of rising prices, this is particularly painful: housing, utilities, food and healthcare costs do not disappear after retirement.

Benefits are failing to keep pace with inflation

Social benefits excluding pensions reduced the risk of poverty by 31.3% in 2025, compared with 35.2% on average in the EU.

The Guaranteed Minimum Income (GMI) is also losing effectiveness. Its amount was not properly adjusted in line with inflation, and its level relative to the poverty line fell from 83.4% in 2020 to 69.9% in 2024.

The programme’s coverage remains one of the lowest in the EU: the GMI is received by just 60% of people aged 18–64 at risk of poverty who live in almost jobless households. In the EU, the figure is 83%.

Disability and migration sharply increase the risk

Among people with disabilities, the rate rose from 31% to 33.8% over the year. Among people without disabilities, it was around 13%.

The risk of poverty stands at 34.4% among third-country nationals, compared with 16% among Cypriots.

Temporary workers are also vulnerable: the risk of poverty among them reached 25.3% in 2025, almost twice the EU average. At the same time, only 8.4% of those who were at risk before receiving benefits actually receive social payments.

Spending on long-term care is eight times lower than the EU average

Cyprus allocates just 0.2% of GDP to long-term care, compared with 1.7% on average in the EU.

There are only 0.8 care workers per 100 people over 65, compared with 3.3 in the EU. As a result, families bear a significant share of the burden.

Problems also persist with social housing and deinstitutionalisation. The European Commission points to insufficient oversight, a lack of data and the absence of a comprehensive national strategy.

One in three people at risk of poverty cannot heat their home properly

In 2025, 11.3% of the population could not keep their homes adequately warm. Among people at risk of poverty, the rate reached 34.6% — the second-highest figure in the EU.

There is also transport poverty. Around 55% of the population cannot reach a medical facility within 45 minutes by public transport. For older people and people with disabilities, this becomes an additional barrier to accessing care.

The social divide is growing alongside economic growth

The European Commission proposes linking benefits to the cost of living, increasing pensions and disability benefits, reforming long-term care, developing social housing and tackling energy and transport poverty.

Cyprus does indeed look better than the EU average in terms of overall poverty statistics. But average figures conceal enormous differences between population groups.