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Cypriots are feeling slightly more financially secure than they did a year ago, but rising living costs, money worries, and concerns about retirement continue to weigh heavily on many households, according to a new nationwide survey.
The 2025 Financial Wellbeing Index, conducted by IMR and the University of Nicosia, found that overall financial wellbeing in Cyprus improved by about four points compared with last year, reaching 54.6 out of 100.
The findings, presented Monday by the Financial Wellbeing Institute with the support of Mastercard, suggest that while people are seeing some improvement in their finances, many are still far from feeling truly secure.
A score of 54.6 indicates a moderate level of financial well-being. Researchers noted that all 14 indicators used to calculate the index improved compared with 2024, suggesting the gains were broad-based rather than limited to a single area.
Yet beneath the positive headline lies a more complicated picture.
Nearly four in 10 Cypriots, 38.4% of the population, fall into the two lowest categories of financial well-being, meaning they are either financially vulnerable or facing financial hardship.
The survey found that:
- 15.4% are considered financially vulnerable
- 23% are financially struggling
- 27.7% are financially adequate
- 20.8% are financially secure
- 13.1% are considered financially thriving
In practical terms, almost four out of every 10 people are struggling financially, while only about one in three feel financially secure or prosperous.
Money stress remains high
One of the clearest findings was that financial stress continues to affect a large share of the population.
Nearly half of respondents, 49.5%, said financial issues cause them stress and anxiety. The survey's stress and anxiety pillar was the only category to score below 50 points, highlighting the emotional toll that financial pressures continue to have on households.
Meanwhile, 45.1% said they find it difficult to get by financially, despite signs of improvement in the broader economy.
For many families, the reality remains familiar: salaries may be covering expenses, but there is often little room left at the end of the month.
Retirement concerns growing
The survey also revealed widespread uncertainty about retirement.
Almost half of Cypriots, 45.1%, said they do not believe they will be able to maintain their current standard of living once they retire.
Researchers also found a gap between expectations and reality when it comes to state pensions. Respondents estimated that their state pension would replace about 52.3% of their final salary on average. In reality, the replacement rate provided through the Social Insurance Fund is estimated at around 42%.
The finding suggests many people may be overestimating what they can expect to receive in retirement, raising concerns about long-term financial planning.
Cost of living remains the biggest concern
Unsurprisingly, the rising cost of living topped the list of financial worries.
More than one in four Cypriots, 26.1%, identified higher living costs as the single biggest threat to their financial security. Nearly half, 48.8%, ranked it among the three biggest financial risks they face.
The findings are likely to resonate with many households that continue to feel the impact of higher prices for groceries, electricity, fuel, and other everyday expenses.
Financial Wellbeing Institute President Panayiotis Andreou said the increase in the index was encouraging but warned against complacency.
"When nearly four in 10 citizens remain in the lowest financial well-being categories and one in two experiences financial stress, it is clear that improvement has not yet translated into real financial security for everyone," he said.
The survey suggests that while Cyprus may be moving in the right direction financially, many people still feel they are walking a tightrope between keeping up with today's bills and worrying about tomorrow's challenges.
