A survey conducted by research agencies showed 42 per cent of retired people who are paid pensions still work in the national economy. It means the retired people still make contribution to society and economy. If these people continue to work and pay social insurance, they will have higher pension afterwards. We can see that we are wasting an important and high-skilled workforce.
Based on the current economic-social factors of Vietnam and to institutionalize the spirit of Resolution 28-NQ/TW dated May 23, 2018, increasing the retirement age for employees is necessary for the following 04 reasons:

Illustrative image (internet)

Firstly: To avoid a labor shortage in the next 20 years due to the aging population.

Currently, Vietnam is undergoing a population aging process where the proportion of people of working age is decreasing, and the dependency ratio is increasing. The labor force participating in Vietnam's labor market in recent years has been slowly increasing in both quantity and percentage, posing a future risk of labor shortage. Therefore, increasing the retirement age for employees is essential to avoid a labor shortage in the next 20 years due to the aging population.

Secondly: To balance the social insurance fund expand the development of participants in social insurance, and adjust pension policies. Increasing the retirement age for employees can adjust pensions and ensure the balance of the Social Insurance Fund. Specifically, according to calculations by Vietnam Social Security, by 2037, the balance of revenue and expenditure will be equal, requiring budget supplements.
Thirdly: To learn from the experiences and practices of countries worldwide regarding retirement age determinations to integrate globally. Statistics indicate that the retirement age in most countries is above 60 for women and above 62 for men. Increasing the retirement age for employees also aims to align with global norms, where the common retirement age is 60-62, without gender-specific limits.
Fourthly: Increasing the retirement age to 62 for men and 60 for women is necessary to avoid sudden adjustments to a much higher level in the future. Most countries increase the retirement age gradually to narrow the retirement age gap between men and women.
As forecasted by international organizations and experts, by 2026, Vietnam will begin seeing its population entering an ageing period. If we don’t increase the retirement age, we won’t be able to cope with this ageing population. Thus, the reasons and analysis demonstrate that increasing the retirement age for employees is necessary to avoid a labor shortage and ensure the long-term balance of the Social Insurance Fund.
However, some concerns increasing the retirement age will not ensure employees' health, as their health deteriorates, and cognitive abilities decline with age, potentially leading to increased unemployment among young employees. Therefore, to avoid a "shock" to the labor market and balance society's adaptation to the increasing retirement age, Decree 135/2020/ND-CP has adjusted the retirement age gradually. The retirement age of employees in normal working conditions shall be gradually increased to 62 for male employees by 2028 and 60 for female employees by 2035.
Since 2021, the retirement age of employees in normal working conditions has been 60 years and 3 months for male employees and 55 years and 4 months for female employees. After, each year, it increases by 3 months for male employees and 4 months for female employees.

The retirement ages of skilled employees who suffer from work capacity reduction; doing laborious, toxic or dangerous works; doing extremely laborious, toxic or dangerous works; working in highly disadvantaged areas may be younger by up to 05 years than prescribed retirement age at the time of retirement, unless otherwise prescribed by law.
The retirement ages of skilled employees in certain special cases may be older by up to 05 years than the prescribed retirement age at the time of retirement, unless otherwise prescribed by law.

So, currently, the retirement age of employees increases each year. Specifically, starting from 2021, the retirement age of employees in normal working conditions shall be 60 years and 3 months for male employees and 55 years and 4 months for female employees. Subsequently, the retirement age increases by 3 months for male emp

loyees and 4 months for female employees each year. Therefore, in 2024, the retirement age for employees under normal working conditions shall be 61 years for male employees and 56 years and 4 months for female employees.
New strategy aims to expand social insurance coverage
By 2030, Vietnam will have 60 percent of the working-age population covered by social insurance, in which farmers and the informal sector’s workers covered by voluntary social insurance will account for some 5 percent.

Such is one of the targets set forth under the Strategy for social insurance development approved by the Prime Minister under Decision 38/QD-TTg dated January 11.

Accordingly, there will be 45 percent of the working-age population covered by unemployment insurance, around 60 percent of retired people receiving pensions, monthly social insurance and retirement benefits, and over 97 percent of the entire population covered by health insurance.

Besides, the rate of people and businesses satisfied with administrative procedure settlement is expected to reach 95 percent and the index reflecting the satisfaction rate of social insurance participants will reach 90 percent.

It is also targeted to have 75 percent of the population receiving social insurance and unemployment insurance benefits by cashless payment modes in urban areas.

Another target set by the Strategy is to continue promoting digital transformation, researching and developing the information technology system of Vietnam’s social security sector in order to meet the requirements on integration, interconnectivity, linkage and centralized processing of dossiers.

To that end, it is necessary to develop the National Insurance Database; and interconnect and share data of the National Insurance Database with the National Population Database and other national and specialized databases in order to facilitate the provision of public services, creating favorable conditions for the people and employers, and big data-based inspection and control activities.

Meanwhile, all information systems of the Vietnam Social Security that are related to the people, organizations and businesses will be restructured with application of modern technologies for putting into operation, and interconnected via datasharing platforms; and all the insured’s dossiers (except those classified as state secrets) will be processed in the cyber environment.

To achieve the set targets, the Strategy sets out major tasks and solutions, including reforming administrative procedures, renovating the implementation of the single-

VSS-PV