**Four in Ten Cypriots Face Financial Vulnerability, New Report Reveals**
The Financial Wellbeing Institute has released its Financial Wellbeing Index report for 2025, highlighting a modest improvement in the financial health of Cypriots while underscoring that a significant portion of the population continues to experience financial pressure. The index, which measures various aspects of financial wellbeing, reached 54.6 points this year, reflecting an increase of approximately four points from 2024.
Despite this positive trend, the report reveals that around 38.4% of Cypriots, or four in ten individuals, remain classified in the two lowest categories of financial wellbeing. Specifically, 15.4% of the population is deemed financially vulnerable, while 23.0% are categorized as financially struggling. In contrast, the remaining population includes 27.7% who are financially adequate, 20.8% who are financially secure, and only 13.1% who are considered financially thriving.
The findings were presented by Panayiotis C. Andreou, the president of the Financial Wellbeing Institute, during a press conference. The research, conducted by IMR at the University of Nicosia and supported by Mastercard, indicates that financial stress remains a significant concern, with this dimension scoring just 48.8 points—below the critical threshold of 50 points.
The survey revealed that nearly half of the respondents, approximately 49.5%, experience financial issues that contribute to stress and anxiety. Additionally, 45.1% of participants reported difficulties in making ends meet. Retirement planning emerged as a pressing concern, with nearly half of the population expressing doubts about their ability to sustain their current standard of living post-retirement. Participants estimated that their state pension would cover about 52.3% of their final salary, while the actual replacement rate provided by the Social Insurance Fund is closer to 42%.
When asked about the most significant threats to their economic stability, 26.1% of respondents identified the rising cost of living as the primary danger to their financial security. Andreou emphasized that financial wellbeing encompasses more than just income; it also involves individuals' capacity to make informed decisions, plan for the future, and confront financial challenges with confidence.
While the increase in the index is viewed as a positive development, Andreou cautioned against complacency. "When nearly four in ten citizens are located in the two lowest financial wellbeing categories and one in two experiences financial stress, it is clear that improvement has not yet translated into genuine financial security for everyone," he stated. He highlighted the need for targeted interventions in financial education, retirement planning, and household financial resilience to address these ongoing challenges.
The Financial Wellbeing Index is calculated based on three core pillars: financial resilience, perceived financial security, and levels of stress and anxiety. The survey was conducted in November 2025, utilizing a nationwide sample of 809 permanent residents of Cyprus aged between 18 and 64.
As the cost of living continues to be a significant concern for many Cypriots, the findings of this report underscore the importance of ongoing efforts to enhance financial education and support for the population. The Financial Wellbeing Institute aims to foster a more secure financial future for all citizens, recognizing that financial stability is a critical component of overall wellbeing.