The Cyprus pension system has its problems that have to be faced by the government and appropriate solutions to be implemented as soon as possible. Furthermore, these issues are common worldwide.
The possible alternative solution for the citizens is to find adequate Financial Retirement Planning. Unfortunately, a very low percentage of the working individuals have implemented such planning and at the same time, we witness a high poverty rate for pensioners in Cyprus.
State reserves for Social Insurance Funds are insufficient. As a result, during the latest years, we pay increased percentages as a contribution to the social funds. The taxpayers are due to pay direct and indirect taxations caused by the inequality created by the system.
The various financial crises, such as the 2000th at the Stock Exchange market, the 2013th bail-in, the crisis on the real estate market, etc. created insecurity for the consumer but also loss of trust in the banking institutions for the negative deposit interest rates.
Taking all these into consideration, in recent years, “insurance savings-investment programs” have been a key preferred solution and perhaps, in my opinion, the only reliable one. The institutions offering this solution became a trustworthy partner due to the Financial Planning, the Risk dispersion, the candidate profile analysis, a combination of protection coverage, and having the European supervisory control which is one of the strictest mechanisms in the European Union that governs insurers, especially with the implementation of the new European directive on the distribution of insurance products IDD.
Furthermore, the insurance industry was the lung of the country’s GDP in 2013 and helped Cyprus to breathe and move forward.
In November 2019th, we had the amendment of the law for the tax-free income from 1/6 to 1/5, which is 20% of the gross annual income. This helped the economy to recover.
Nowadays, in the middle of the COVID-19 pandemic crisis, with a struggling tourism sector which is the backbone of the economy in Cyprus and with the sudden ending of the national program of the so-called “golden passports”, the Insurance market plays a vital role in the nation’s economy.
I strongly advise you to take advantage and use your tax margin with a savings insurance product, to benefit from the tax refund, change tax scale and plan your future with us, taking all the benefits you deserve.
For a better future, leave with dignity your family, but also for your elderly years as a pensioner!
A long time ago, a young man said to his insurer: “This saving plan is ridiculous”. Today, at an age of 65 he states: “In the end, it was the biggest mistake of my life that I did not listen to you. Unfortunately, I cannot take the time back. If I could, I would do the pension insurance for sure “.
SECURE YOUR FUTURE, TODAY
Tips of the day from “TIMES” Survey:
Age / Savings
30-40: 3 times your annual salary
40-50: 6 times your annual salary
50-60: 8 times your annual salary
60-70: 10 times your annual salary