Cyprus pension reform from 2027: higher payments, smaller early retirement penalty

Cyprus presented a pension reform proposal to trade unions and employers on Wednesday, targeting implementation from 1 January 2027. All 123,000 existing old-age pensioners would get an increase, with greater support for lower pensions, and the actuarial adjustment for retiring at 63 would drop from 12% to 7.5% on the basic pension component. The changes are not yet law, with further talks with social partners due on 28 August. For those living in or moving to Cyprus, the current Social Insurance Scheme continues to cover employees and self-employed people working legally on the island.