Financial wellbeing in Cyprus has improved in 2025, according to a nationwide survey, although many households continue to face financial pressure from rising living costs and long-term uncertainty.
The financial wellbeing index, compiled by IMR and the University of Nicosia with the support of Mastercard, rose by around four points year-on-year to 54.6 out of 100. Researchers say this signals a moderate but not strong level of financial stability across the population.
Nearly four in 10 remain financially vulnerable
Despite the improvement in the financial wellbeing score, the findings show that 38.4% of Cypriots still fall into the two lowest categories of financial health.
These include 15.4% classified as financially vulnerable and 23% as financially struggling. At the same time, 27.7% are considered financially adequate, 20.8% financially secure, and only 13.1% financially thriving.
Researchers noted that all 14 indicators used in the index improved compared with 2024, suggesting broad-based gains rather than isolated progress.
Financial stress continues to affect households
The survey highlights that financial pressure remains widespread, with nearly half of respondents (49.5%) reporting stress and anxiety linked to money matters.
This category was the only pillar of the financial wellbeing index to score below 50 points, underlining the emotional impact of ongoing financial strain.
In addition, 45.1% of participants said they struggle to get by financially, indicating that many households remain close to the edge despite overall economic improvement.
Retirement concerns and income gaps
Concerns about retirement also weigh heavily on Cypriots. The survey found that 45.1% of respondents do not believe they will maintain their current standard of living after retirement.
On average, respondents expect their state pension to replace 52.3% of their final salary. However, the Social Insurance Fund replacement rate is estimated at around 42%, pointing to a potential gap in retirement expectations and reality.
These findings suggest a need for stronger long-term planning to support future financial wellbeing.
Cost of living remains the top risk
Rising prices continue to dominate household concerns, with 26.1% of Cypriots identifying the cost of living as their biggest financial threat.
Nearly half of respondents (48.8%) ranked it among their top three risks, reflecting ongoing pressure from food, energy, fuel and everyday expenses.
Financial Wellbeing Institute President Panayiotis Andreou said the improvement in the index was encouraging but warned that it does not yet translate into real financial security for all households.
He noted that nearly four in 10 citizens remain in low wellbeing categories and one in two continues to experience financial stress.
Outlook remains cautious
While Cyprus shows gradual progress in financial wellbeing, the survey suggests many households still feel financially constrained, balancing daily costs with uncertainty about the future.
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