The Financial Wellbeing Index for Cyprus rose to 54.6 points in 2025, showing a four-point increase from 2024, according to the Financial Wellbeing Institute. Despite this improvement, the Finance Ministry highlighted that many households continue to experience significant financial pressure, mainly due to inflation, energy costs, and concerns over retirement income.

The study revealed that 38.4% of Cypriots remain in the lowest financial wellbeing categories, with 15.4% classified as financially vulnerable and 23.0% as financially struggling. Financial stress was noted as the weakest index component, with nearly half of respondents reporting anxiety related to finances and difficulty making ends meet.

The government has responded with measures such as tax reforms to increase disposable income and pension system reforms aimed at long-term sustainability. Additionally, the ministry stressed the importance of improving financial literacy to help build a stronger culture of savings. Rising living costs remain the primary threat to financial stability for over a quarter of respondents.