The new pension policy reform increases payments for early retirees with 40 years of contributions, benefiting over 11,000 pensioners with an average annual increase of €800, without raising current workforce contributions. The government’s initiative aims to mitigate financial challenges faced by retirees who chose to retire early, supporting individuals from physically demanding industries like construction and transport.
British retirees in Cyprus are bracing for a tax overhaul in 2025, with their UK state pensions set to be taxed by the UK instead of Cyprus. The shift could lead to higher tax rates, impacting expats’ income as UK taxes tend to be higher than those in Cyprus.
Former leaders in Cyprus receive generous retirement benefits, including a state pension, a chauffeurdriven limousine, and a monthly allowance for secretarial services. These perks, costing taxpayers approximately €700,000 annually, have sparked controversy for their excessive nature and the contrast they create with the average citizen’s retirement benefits.
Pension plans in Cyprus are changing as employers are shifting towards modern solutions like occupational pension plans provided by life insurers or multiemployer IORPs. These plans streamline management, reduce administrative burdens, offer tax benefits, and enhance job satisfaction. Employers are seeking professional advice to ensure their plans meet specific requirements and employee interests.
