More than 100,000 elderly Cypriots are struggling to survive on pensions between €429 and €1,000 per month, amounts the Cyprus Pensioners’ Union (EKYSY) warns cannot cover basic living costs amid continuing price increases.
The crisis deepened on Friday when EKYSY highlighted that January 2026’s pension adjustment delivers pensioners a monthly increase of just €14-17.
The 3.38% rise applies only to the basic pension component, leaving the supplementary portion untouched. Full basic pensions now reach €529.82 monthly, the minimum €450.35, and social pensions €429.15.
These amounts have been hollowed out by inflation, EKYSY said. The union calculates the poverty line should now exceed €1,000 for a single person and €1,500 for a couple. That threshold has remained frozen since 2013—13 years without adjustment.
The President recently acknowledged the severity of the problem, noting Cyprus has not undertaken substantial pension reform since 1980.
He said the government aims to strengthen pensions, particularly for the lowest earners, adding that nobody can get by on €500 or €510 monthly.
The pension crisis intersects with a wider savings gap. Many workers lack access to Provident or Welfare Funds that could supplement state pensions in retirement.
Low salaries force workers into an impossible choice: when employers offer pension savings schemes, workers often refuse, needing every euro of their salary to cover immediate monthly expenses rather than save for a retirement that feels impossibly distant.
This pattern extends across Europe. Insurance Europe’s fourth pan-European survey of 12,700 citizens across 12 countries found 4 in 10 Europeans still fail to save for retirement despite growing awareness of the need. Non-savers range from 16% to 65% depending on country.
Women fall behind men: 46% of women don’t save for pensions compared with 35% of men. Professional advice matters—31% of participants began saving after speaking with a broker, whilst 25% started through employer programmes.
European savers prioritise security overwhelmingly. Some 81% prefer products guaranteeing their capital, with only 19% willing to accept higher risk for potentially greater returns.
Pensions remain the preferred payment form at 43%, though lump sum or combination options attract interest. Digital information appeals to 69% of Europeans, with printed materials available on request.
Insurance Europe said the findings demonstrate the need for targeted policies, advice and frameworks supporting secure long-term pension savings.