You have worked hard for a lifetime and now is the time to enjoy your retirement years with dignity and calmness. To reward yourself with a quiet retirement life, you need to start planning the financing today.
Within the European Union (EU), population ageing is constantly increasing. Currently, there is one pensioner for every four working-age citizens (15-64 years old). Cyprus is no exception. In the coming decades, low birth rates and rising life expectancy will drastically change the demographic distribution in most countries. According to Eurostat, by 2060 there will be two people aged 15-64 for each person over the age of 65. This demographic change is expected to have a detrimental effect on fiscal policy, including the design of pension funds, as well as savings rates.
In Cyprus, according to 2014/2015 statistics, the poverty rate for people over 65 was 22.4%, one of the highest in the EU. Given the economic impact of Covid 19 in the coming years, proper planning is required in order for the annual retirement income to ensure a satisfactory standard of living.
Our retirement is based on 3 Basic Pillars:
The backbone of the pension system in Cyprus is the Government’s mandatory Social Insurance Fund.
The second pillar consists of various welfare funds or other similar collective arrangements. Employees and employers contribute to this, with the ultimate benefit depending on the amount of contributions and the performance of the funds. This retirement pillar is not mandatory.
The third pillar is the private pension plans offered by the insurance companies.
Start Planning Today
With the finding that for most people the pension benefits from the first pillar does not ensure the expected standard of living during the retirement period, and with the financial crisis that followed the events of 2013, which negatively affected the second pillar of the pension system, and the fact that many people don’t have additional private retirement plans, there is a need for everybody to consider today, whether they will have enough money to finance their living standards in comfort and dignity during their retirement.
Recognizing that life expectancy has increased and we may no longer be able to rely on social security funds or even count on the troubled welfare funds, we need to start planning today for our expected retirement needs, and look for alternative sources of funding, taking into account every possible scenario that could help.
Retirement as it is today requiring constant monitoring and study to make timely decisions so that you can actively participate in social life during retirement, a long-lasting life that is constantly being extended.
The information above may vary from Insurance Company to Insurance Company. Depending on the Insurance plan we will propose, we will give you all the relevant information required by the legislation so you can make your decision. Ask us today for an offer and, we will choose the most suitable package for your needs and budget.