financial vulnerability — Four in ten Cypriots face financial vulnerability, according to the latest Financial Wellbeing Index report released by the Financial Wellbeing Institute on Monday. The report, which assesses the financial health of the population, indicates a modest improvement this year, with the index rising to 54.6 points—an increase of approximately four points from 2024.
Despite this positive trend, the report reveals that about 38.4 per cent of households still find themselves in the two lowest categories of financial wellbeing. The findings were presented by Panayiotis C. Andreou, president of the Financial Wellbeing Institute, who emphasised the need for continued efforts to support citizens.
Financial vulnerability: Current Financial Profiles of Cypriots
The report categorises the population into five distinct profiles. Currently, 15.4 per cent of Cypriots are classified as financially vulnerable, while 23.0 per cent are considered financially struggling. In contrast, 27.7 per cent are deemed financially adequate, 20.8 per cent financially secure, and just 13.1 per cent are considered financially thriving.
The Stress of Financial Issues
Financial stress remains a significant concern, with the relevant pillar of the index scoring only 48.8 points, falling below the crucial 50-point threshold. Nearly half of all respondents, 49.5 per cent, reported that financial issues are a source of anxiety, while 45.1 per cent admitted to struggling to make ends meet.
Retirement Planning Woes
Retirement has emerged as a major area of worry for many, with nearly half of the population expressing doubts about their ability to maintain their standard of living post-employment. Individuals estimated that their state pension would provide 52.3 per cent of their final salary, but the actual replacement rate from the Social Insurance Fund is significantly lower, at around 42 per cent.
Concerns Over Rising Living Costs
When asked about threats to their economic stability, 26.1 per cent of respondents identified the rising cost of living as the biggest danger to their financial security. This concern highlights the broader economic pressures facing many households in Cyprus.
The Path Forward
Andreou noted the importance of financial education and planning, stating that financial wellbeing encompasses more than just income. “It is also about citizens’ ability to make informed decisions, plan for the future and face financial challenges with confidence,” he said. He cautioned that while the increase in the index is encouraging, it should not lead to 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,” Andreou added. He called for targeted interventions to help address persistent challenges in financial education and household resilience.
The Financial Wellbeing Index is calculated based on three core pillars: financial resilience, perceived financial security, and levels of stress and anxiety. The survey that produced these findings was conducted in November 2025, involving a nationwide sample of 809 permanent residents of Cyprus aged between 18 and 64.
