The Ministry of Finance has responded to the recent Financial Wellbeing Institute survey on the 2025 Financial Wellbeing Index, saying in a statement that the government has adopted a series of measures to tackle rising prices with significant benefits for citizens.
According to the survey, cited by the ministry, the 2025 Financial Wellbeing Index shows an overall increase compared with 2024, with improvement recorded across all 14 categories that make up the index, pointing to a broad-based strengthening of citizens' wellbeing.
The survey also highlights that a section of the population continues to face challenges and difficulties, including the energy crisis and the wider rise in the cost of living. It records concern among citizens over their retirement and whether they will be able to maintain an acceptable standard of living.
"In this context, recognising the challenges created by external factors, the government has already adopted a series of measures to tackle rising prices with significant benefits for citizens. In addition, the implementation of the new tax framework is boosting citizens' disposable income through changes to tax brackets and an increase in the tax-free threshold, while significant tax reductions are also being provided for various categories," the ministry said.
On the issue of pensions, the ministry stressed that the government is in the process of reforming the pension system in order to preserve its sustainability while substantively strengthening the adequacy of pensions.
The survey also points to a real need to strengthen citizens' financial literacy, so that a culture of saving becomes embedded in households.
"The government monitors and analyses every significant report and survey concerning the state and needs of the Cypriot economy, as part of pursuing a rational economic and social policy for the benefit of citizens," the ministry concluded.
