Pension Reform: The Next Challenge for Cyprus

The government of Cyprus is preparing for the reform of the pension system, scheduled for 2027, following the implementation of the tax reform. The reform aims to address low pensions and ensure a decent standard of living for pensioners.

Under current conditions, the minimum pension, even with the addition of the small allowance, is not sufficient to cover basic needs. Available data shows that a low-income pensioner receives between €600 and €700 per month, an amount insufficient for housing, food, energy, and health.

A significant issue is the state debt to the Social Insurance Fund (TKA), which amounts to €12.8 billion since 2010. Parliament has pointed out that borrowing from the TKA creates fiscal surpluses, shifting the problem to the future.

The reform also concerns future generations of workers, ensuring that their contributions will not cover long-standing weaknesses. The goal is a pension system based on social justice and balance.