The Financial Wellbeing Index 2025 recorded an increase of approximately four points compared to 2024. The findings were presented during a press conference organised by the Financial Wellbeing Institute, with the support of Mastercard.
The results of the survey, conducted by IMR / University of Nicosia, which examines the current financial situation, expectations and level of financial stress among citizens in Cyprus, were presented by the President of the Financial Wellbeing Institute, Dr Panayiotis C. Andreou.
The overall Financial Wellbeing Index reached 54.6 points in 2025. Scores range from 0 to 100, with higher scores indicating higher levels of financial wellbeing. This result points to a moderate overall level of financial wellbeing, showing improvement compared to 2024, although it has not yet reached levels that could be considered high. Notably, all 14 questions that make up the Index recorded improvements compared to 2024, suggesting that progress was broad-based and not limited to a single dimension of the Index.
Despite this positive development, the findings show that a significant proportion of the population continues to face financial challenges. Specifically, 38.4% of Cypriots fall within the two lowest financial wellbeing categories. More specifically, the survey classified citizens into five distinct financial wellbeing profiles:
• 15.4% are classified as “Financially Vulnerable”
• 23.0% as “Financially Struggling”
• 27.7% as “Financially Adequate”
• 20.8% as “Financially Secure”
• 13.1% as “Financially Thriving”
The findings indicate that nearly four in ten Cypriots are located in the two lowest wellbeing categories, while only one in three belongs to the two highest categories.
Financial stress remains the weakest dimension of the Index
Analysis of the three pillars of the Index shows that Financial Resilience is the strongest dimension of Cypriots’ financial wellbeing, scoring 57.4 points. This is followed by Perceived Financial Security at 53.9 points.
However, the Stress and Anxiety pillar remains the only pillar below the 50-point threshold, with a score of 48.8. Nearly one in two citizens (49.5%) report that financial issues cause them stress and anxiety, highlighting the significant psychological dimension of financial wellbeing.
At the same time, 45.1% of respondents state that they struggle to make ends meet, confirming that day-to-day financial pressure continues to affect a large share of households.
Cypriots are concerned about retirement
One of the most important findings of the survey relates to retirement expectations.
Nearly half of Cypriots (45.1%) disagree that they will be able to maintain their current lifestyle during retirement. At the same time, citizens estimate on average that the state pension will represent 52.3% of their final salary, whereas the actual replacement rate provided by the Social Insurance Fund is estimated at around 42%.
This finding highlights a significant gap in both knowledge and expectations regarding retirement planning.
Cost of living identified as the greatest threat
The rising cost of living emerges as the leading concern among citizens.
A total of 26.1% of Cypriots consider the increasing cost of living to be the single greatest threat to their financial security, while 48.8% rank it among the top three economic threats they face.
According to Dr Panayiotis C. Andreou:
“At the Financial Wellbeing Institute, we believe that financial wellbeing is not only about income. It is also about citizens’ ability to make informed decisions, plan for the future and face financial challenges with confidence. The increase in the Index is a positive development, but 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. Targeted interventions in financial education, retirement planning and household financial resilience are needed. This is why the continuous measurement and monitoring of these indicators is particularly important.
I would also like to thank our strategic partner, Mastercard, for supporting this initiative. The contribution of organisations that consistently invest in financial education, innovation and the economic empowerment of citizens is essential in building a society with higher levels of financial wellbeing and resilience.”
About the survey
The Financial Wellbeing Index is an initiative of the Financial Wellbeing Institute and measures citizens’ financial wellbeing through three core pillars: Financial Resilience (50%), Perceived Financial Security (30%), and Stress and Anxiety (20%).
The survey was conducted in November 2025 by IMR / University of Nicosia on a nationwide sample of 809 permanent residents of Cyprus aged between 18 and 64, using a stratified random sampling methodology.
About the Financial Wellbeing Institute
The Financial Wellbeing Institute was established in December 2020. It is the first non-profit organisation of its kind in Cyprus, dedicated to addressing financial illiteracy and promoting the financial wellbeing of citizens.
The Institute develops scientific initiatives and advances evidence-based policy recommendations. At the same time, it contributes to the financial empowerment of citizens through awareness, information and education.
The Institute’s work is based on three pillars: scientific evidence underpinning every initiative and publication; the promotion of targeted policies that strengthen financial literacy; and collaboration with institutions and organisations to develop solutions that enhance citizens’ financial resilience.
Supporters
Key Strategic Partner: Mastercard
Strategic Mission Partners: IMR | Athlos Capital
Gold Empowerment Partners: Alpha Bank | Lemissoler
Silver Empowerment Partners: EY Cyprus | Artemis Credit Bureau
Legal Partner: H. Priority Trust Services
