Averof Neofytou criticizes proposed pension reform in Cyprus

Former DISY President Averof Neofytou has sharply criticized the government's proposed pension reform, characterizing it as a mockery of low-income pensioners and a victimization of younger generations. Neofytou argues that the current plan does not provide substantial state support or meaningful pension increases, but instead relies on the redistribution of existing Social Insurance Fund (TKA) resources. He claims this approach offers only marginal current gains at the expense of future pensioners, describing the proposal as an attempt to rebrand internal fund reallocations as significant reform.

The government's proposal, currently under public consultation, aims to increase pensions starting January 1, 2027, with benefits expected to reach 123,000 existing pensioners by February 2027. While there is broad consensus on the necessity of reforming the system to reduce poverty and inequality, critics question the long-term financial sustainability of the plan. Skeptics, including Neofytou, highlight a lack of transparency regarding the total cost and the specific funding sources required to sustain the pension system in the long run. As the consultation proceeds, the debate continues over whether these adjustments constitute structural reform or a temporary fiscal stimulus ahead of upcoming political cycles.