Cyprus: Aging Population Raises Concerns for Pension System

Cyprus is experiencing the largest increase in median age within the European Union, according to data from Eurostat. The median age in Cyprus has risen from 37 years in 2015 to 41 years in 2025, indicating an aging population trend due to increased life expectancy combined with declining birth rates. This demographic shift has significant implications, particularly for the pension system. As the population ages, the number of pensioners increases and their life expectancy lengthens, requiring higher pension payments. Therefore, the increase in the median age of the population must be seriously considered in the process of reforming the pension system in Cyprus. The need for sustainable pension policies is becoming imperative, given the changing demographic structure of the population. An aging population and increased pension expenditures are global challenges faced by many countries. Cyprus, with its rapid increase in median age, faces these challenges particularly acutely.