Pension reform: Reduction penalty lowered, implementation planned for January 2027
The Cypriot government plans a pension reform with implementation starting January 1, 2027. The pension reduction penalty for those retiring at age 63 is to be reduced from 12% to 7.5% and applied only to the basic pension. The government aims for pensioners to see first financial improvements starting February 2027. Social partners, however, demand transparent presentation of total cost burden and financing sources.