Nicosia, Cyprus. Cyprus retained the third-highest number of pension funds in the eurozone despite a decline of more than 30 per cent over the past five years, according to the Central Bank of Cyprus. The central bank’s first statistical report on pension funds for 2025 outlined developments in the assets and liabilities of Cyprus-based pension funds, as well as the number of funds and their members.
Fund numbers and eurozone ranking
According to the report, the total number of pension funds in Cyprus stood at fewer than 600 at the end of 2025. This reflected a decline of more than 30 per cent during the previous five years following the implementation of legislation governing occupational retirement provision.
Despite the reduction, Cyprus remained third in the eurozone in terms of the number of pension funds, behind Ireland, which has around 5,000 funds, and Spain, which has approximately 1,000.
Assets and sector structure
The report said Cyprus ranks among the lowest in the eurozone in terms of average assets per pension fund, with each fund holding less than €10 million on average. It said this points to a persistently fragmented sector.
According to the Central Bank of Cyprus, the pension landscape is dominated by defined contribution schemes, which account for more than 80 per cent of pension funds, compared with defined benefit schemes. The central bank said the prevalence of defined contribution arrangements reflects their lower costs and reduced risks for employers.
Membership trends and investment profile
The report stated that 75 per cent of members in Cyprus are active, compared with 58 per cent across the eurozone. However, it said the period between 2020 and 2025 recorded a faster decline, reflecting growing pressures arising from demographic ageing.
The report also showed that the investment profile of pension funds remains concentrated in traditional asset classes, although there are signs of gradual diversification that could improve returns while also increasing volatility. According to the report, 26 per cent of pension fund assets in Cyprus are invested in debt securities, while 25 per cent are held in equities.