The Central Bank of Cyprus has today released the first statistical report on pension funds for 2025, which provides an overview of the main developments in the assets and liabilities of pension funds resident in Cyprus, as well as information on the number of pension funds, and their members.
The main remarks of the statistical release for Cyprus are summarized below:
- The number of pension funds in Cyprus has declined by more than 30% following the implementation of the Law on Occupational Retirement Provision. However, the country remains the euro area’s third-largest by number of pension funds and ranks at the lower end in terms of average assets per fund among the euro-area countries, indicating a persistently fragmented sector.
- The pension landscape is dominated by defined contribution schemes, as opposed to defined benefit schemes, which account for over 80% of pension funds, reflecting lower costs and reduced risk for employers.
- The investment composition of pension funds remains focused on traditional asset classes, however, there are signs of gradual diversification, which may support higher returns, albeit with increased volatility.
- Pension funds in Cyprus exhibit relative resilience, contributing to the sector’s stability and supporting the long-term sustainability of pension benefits. However, approximately 20% of the total value of defined benefit schemes is estimated to be underfunded (i.e. in deficit).
The report will be published on an annual basis and is available in English and Greek.