Cyprus pension reforms criticized as insufficient by Economy and Competitiveness Council

Demetris Georgiades, president of the Cyprus Council of Economy and Competitiveness, recently stated that the government's ongoing pension reform efforts are primarily focused on social policy rather than structural system overhaul. Speaking at a press conference regarding the council's 2025 report, he noted that current government negotiations with stakeholders, including trade unions and employers' organizations, are limited to the first pillar of the system—the Social Insurance Fund—and the adjustment of low pensions. While acknowledging these as positive steps, Georgiades emphasized that they will not solve the long-term issue of pension adequacy.

According to the council, Cyprus suffers from a critical weakness in its second and third pillars, namely occupational pension funds and private insurance. Georgiades argued that international experience proves that sustainable retirement security relies on a multi-pillar approach, potentially incorporating up to four pillars. He urged the government to implement broader reforms to encourage the expansion of private and professional schemes. The government is currently aiming to implement its reform package by the beginning of 2027, though critics argue that without addressing the deeper structural gaps, the measures will remain insufficient to manage the looming demographic challenges.