Nicosia: Cyprus is pursuing reforms to ensure that its Social Insurance system remains fair and financially sustainable in the face of demographic challenges, Labour and Social Insurance Minister Marinos Moushouttas said on Friday. Speaking at the inauguration of Grawe Cyprus' fifth branch in Nicosia, Moushouttas emphasized the Ministry's commitment to safeguarding the long-term sustainability of the country's pension system.
According to Cyprus News Agency, the Minister highlighted the urgency of pension reform due to rising life expectancy, an ageing population, and evolving labour market conditions. "Our goal is a system that is fair, adequate and financially sustainable, guaranteeing a dignified retirement income," he stated. Moushouttas warned that these demographic factors make pension reform not just desirable but necessary.
Moushouttas explained that Cyprus' pension framework relies on three complementary pillars. The Social Insurance system forms the foundation, with occupational pension schemes providing additional protection. Voluntary private insurance serves as a supplementary source of retirement income. He noted the growing importance of the third pillar, as private insurance and personal savings schemes empower individuals to plan ahead, protect their income, and face future uncertainties with greater confidence.
The Minister also described the insurance sector as crucial to the country's social protection framework, especially during crises and natural disasters. He emphasized its role in contributing to economic and social resilience.