The financial wellbeing of Cypriot citizens has marked a significant decline, according to the results of the Financial Wellbeing Index 2024.
Presented for the first time by the Financial Wellbeing Institute, the overall index value stands at 51.4 points (base 100), down from 56.7 points in 2023, highlighting the increasing challenges faced by citizens due to financial insecurity, insufficient savings and stress.
According to the key findings, 57 per cent of participants feel that the rising cost of living threatens their financial security and 42 per cent say they are unable to cover €800 in urgent expenses without borrowing money.
Only 38 per cent have enough savings for three months, 56 per cent are experiencing stress due to financial issues and 30 per cent expect their situation to deteriorate in the next 12 months.
Additionally, 24 per cent of respondents said they find it difficult to pay all their utility bills at the end of the month. Only 31 per cent of participants have already taken care of their retirement planning beyond the basic social security pension.
The survey highlighted gender and age inequalities. According to the results, men show higher financial well-being compared to women, with index values of 55.4 and 45.9 respectively.
People aged between 25-29 have the lowest financial well-being index value, and this trend is also observed for people with an annual income of up to €20,000. Participants from Famagusta showed the highest financial well-being index value (55.6), while Larnaca province recorded the lowest (46.4).
The Financial Wellbeing Institute is the first non-profit organisation of its kind in Cyprus, established to promote financial wellbeing and tackle financial illiteracy.
It defines financial wellbeing as the state in which an individual has sufficient financial resources to meet their needs, feel secure about their financial future and make decisions or choices that allow them to enjoy life without financial stress undermining their mental or physical health.
The index, which is based on an innovative methodology, assesses three fundamental dimensions of financial wellbeing: perceived financial security, financial resilience and stress related to financial difficulties.
To measure financial well-being in Cyprus in 2023 and 2024, a quantitative research approach was adopted using a structured questionnaire. In the period April-May 2023, the first sample survey at population level was conducted with random sampling across the country.
The first wave involved 1,000 people, aged between 25-64, through telephone interviews. The second wave of the survey was conducted in July 2024, also on a nationwide scale, involving 700 people in the same age range, through telephone interviews.
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