The Ministry of Labor and Social Security is working to ensure the long-term sustainability of the social security system, said the minister in charge, Marinos Mousiouttas, noting that “our goal is a fair, adequate, and financially sustainable system that will guarantee a decent retirement income.”

In his remarks on Friday at the opening of Grawe Cyprus’s fifth branch in Nicosia, Mr. Mousiouttas further highlighted the ever-increasing importance of private insurance as a supplementary pillar of the pension system, while noting that pension reform is necessary due to demographic transition.

He said that rising life expectancy, an aging population, and changing conditions in the labor market make reform of the pension system imperative.

“We are living in an era of demographic transition. Rising life expectancy, an aging population, and changing labor market conditions make pension reform not merely desirable, but necessary,” he noted.

Referring to the structure of the pension system, the Minister said that social protection is based on the complementary functioning of the three pillars, with the Social Security system serving as the foundation, occupational pension plans serving as the second pillar, and private, voluntary insurance supplementing citizens’ income upon retirement.

As he noted, “the third pillar, in particular, is becoming increasingly important. Private insurance and personal savings plans enable citizens to plan for their future in a timely and responsible manner, protect their income, and face life’s uncertainties with greater confidence,” he emphasized.

Mr. Mousiouttas also noted that the insurance industry is an important pillar of social protection, particularly during times of crisis and natural disasters, and described Grawe Cyprus’s expansion “a vote of confidence in Cyprus as an investment destination and, at the same time, as a European country with institutional stability and prospects.”

Finally, he added that the presence of international groups, such as Grawe, in Cyprus “enhances the country’s international profile and creates added value for both the economy and society,” while, as he noted, it creates new opportunities for employment, innovation, and skills development.