In 2018, legislation which ties life expectancy to the retirement age will take effect, extending the retirement age in Cyprus.
It’s a measure which is introduced in the Cyprus retirement system for the first time and will affect the retirement age for workers in 2023, when the first recalculation of the age of retirement takes place. The measure will affect both private and public sector employees.
In the five-year period, 2018-2023, the Ministry of Labour will evaluate the changes in the life expectancy and, depending on its findings and the viability of the Social Insurance Fund, it will recalculate the age of retirement limit.
The goal is that by 2039, the retirement age limit is set at 67 years old, given that life expectancy continues to increase.
Life expectancy for men today is at 79.4 years, while for women it’s at 83.6 years. This is expected to increase, and by 2020 reach 80.1 years for men, and 84.3 years for women.
The age of compulsory retirement today is set at 65 years old, with a right for early retirement and reduced pension at 63 years old.
Tying life expectancy to the age of retirement is considered a crucial measure which aims to make the Social Insurance Fund viable in the long run.