A third of the elderly on the brink of poverty: pension reform in Cyprus sparks debate

In Cyprus, nearly every third citizen over 65 faces the risk of poverty or social exclusion. According to Eurostat data, this figure reaches 31.5%, reflecting serious socio-economic problems among the elderly population.

Experts note that key reasons remain low pension levels and the rising cost of living. As a result, many retirees find themselves in conditions where basic expenses become almost unbearable, affecting not only economic well-being but also social stability.

Against this backdrop, the government plans to implement pension reform from January 1, 2027. Proposed measures include raising the basic pension and supporting low-income retirees. However, discussion of the reform is already drawing criticism: payments are expected to increase only within the capacity of the Social Insurance Fund, and the basic pension will remain below the minimum wage level.

Analysts emphasize that this approach limits the reform's potential. In their view, the key goal should be providing pensions at a level that guarantees a decent life. Possible solutions mentioned include more efficient fund resource management and using future natural gas revenues to support the pension system.

The issue of pension provision is becoming not just an economic but also a political one, requiring strategic decisions to reduce poverty among the elderly.