Nicosia, Cyprus. The Financial Wellbeing Index for Cyprus rose in 2025, but household financial pressure remains widespread, according to findings published by the Financial Wellbeing Institute and comments issued by the Finance Ministry on Thursday. The index reached 54.6 points, up by around four points from 2024.
Broad improvement across the index
The Finance Ministry said the increase reflected a broad improvement across all 14 components of the index. In a statement, the ministry said the results pointed to an overall strengthening of financial wellbeing while acknowledging that significant challenges remain.
Inflation, energy and retirement concerns
The ministry said the findings highlighted ongoing difficulties faced by parts of the population due to the cost of living and external economic pressures. It added that inflation, energy costs and anxiety over pensions remain key concerns for households.
Government measures
The ministry said the government has already implemented measures aimed at tackling inflation and supporting households, including changes to tax policy intended to increase disposable income. These include revised tax brackets, a higher tax-free threshold and additional tax reliefs for different categories of taxpayers.
Pension reform and financial literacy
The ministry also referred to ongoing reforms of the pension system aimed at ensuring long-term sustainability and improving the adequacy of retirement incomes, as well as strengthening public confidence in future pension provision. It further said that improving financial literacy remains a priority, as better understanding of household finances is seen as essential to building a stronger culture of savings.
Population under financial strain
The Financial Wellbeing Index, presented by Financial Wellbeing Institute president Panayiotis C. Andreou, showed that despite the improvement, a significant share of the population continues to face financial strain. The research found that 38.4 per cent of Cypriots remain in the two lowest categories of financial wellbeing.
