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Nguyen Van Hai Hong, a teacher at Phu Thuong Secondary School (Phu Thuong Ward, Hue City), after 15 years and 4 months working in the education industry decided to quit his job in March 2024 and withdraw lump sum social insurance benefits (more than 170 million VND).

According to Hong, at just 47 years old, if he quits his job and doesn't opt for the lump-sum withdrawal, he will have to wait  for 15 years before he can start receiving his pension. Meanwhile, his family needs a large amount of money to resolve immediate concerns.

"When I came to make the procedure for withdrawing lump sum social insurance (SI) premiums benefits, the staff at the Hue City Social Security office advised me to retain my participation to later receive a pension and other state benefits. However, I still decided to withdraw the SI lump sum to address current needs, and will figure out the future later," Hong shared.

Fortunately, after receiving the lump sum, the social insurance official proactively approached him to spread awareness, which led Hong to decide to register for voluntary social insurance for himself and his brother, with a contribution of 5 million VND per person per month. Thus, although Hong received a lump sum to resolve his family's immediate needs, both he and his family still had the opportunity to remain in the social security system through voluntary social insurance participation.

Similar to Hong's case, hundreds of workers have opted to withdraw their social insurance in a lump sum after leaving their companies. However, thanks to the timely adaptation of the Hue City Social Security office, there has been an increase in workers continuing to participate in voluntary social insurance after receiving their lump-sum payment, helping to reduce the burden on their children when they get older.

"After withdrawing the lump sum of over 150 million VND to open a business, I continued to participate in voluntary social insurance, with a contribution of over 320,000 VND per month. More importantly, when I reach retirement age, I will still have a pension like my colleagues," shared Nguyen Thi Ai, a worker at a garment factory in Phu Bai Industrial Park (Hue City).

Mr. Tran Thuan and Mrs. Nguyen Thi Khuyen, as retired civil servants in Kim Long Ward, Hue City, receive a combined pension of nearly 20 million VND a month, which allows them to live comfortably and take care of themselves. However, what worries them is the future of their youngest son, who is currently working abroad in South Korea.

"After working abroad, I’m afraid he won't be able to find stable employment or will face difficulties in the future. So, I decided to enroll him in voluntary social insurance with a contribution of 1.8 million VND per month, hoping that when we get old, we’ll be at ease knowing that our child will have a pension book and health insurance card to take care of his health, just like us," Mrs. Khuyen shared.

Currently, dozens of workers visit the Hue City Social Security Office each day to apply for a lump-sum  social insurance withdrawal. Each person has their own circumstances and reasons for opting to withdraw, but many still decide to do so despite being advised otherwise. Despite the city’s efforts to counsel and persuade people to maintain their social insurance participation for future pension benefits, the number of people withdrawing a lump-sum  social insurance continues to rise, which means fewer people will receive pensions in the future.

For example, Mrs. Nguyen Thi Toan and Mr. Le Minh, who work at a supermarket in Hue, withdrew lump sum social insurance premiums in a  a few years ago after facing health issues and financial difficulties. Mr. Minh had a traffic accident and could no longer work, so the couple withdrew their lump-sum premiums to cover their medical bills and daily expenses. Unfortunately, the lump-sum amount only helped them for a short period.

Since late 2023, they have resorted to making conical hats to earn a living, but the income is minimal, and they still spend nearly 2 million VND a year to buy health insurance. "My health is not good, but I still have to work to cover my daily expenses. If I hadn't withdrawn my social insurance lump sum, my husband and I would have had a monthly pension to take care of our old age and health insurance for medical care," Mrs. Toan shared.

According to Hue Social Security office, withdrawing lump sum social insurance severely limits a person's access to pension benefits. Yet many still choose to do so to resolve their immediate financial concerns. This situation has led to a growing number of workers opting for lump-sum withdrawals. By the end of May 2024, nearly 5,000 people in the province had withdrawn their social insurance, a 26% increase compared to the same period last year. This is a concerning trend, as it directly affects workers' rights and the overall social security system, as well as the country's socioeconomic situation.

Additionally, Hue City Social Security office noted that many workers choose to withdraw their benefits in a lump sum because they do not fully understand the policy, follow the crowd, or need money to address current problems. To help workers better understand the policy and reduce the number of lump-sum withdrawals, Hue City Social Security frequently collaborates with the Employment Service Center to organize dialogues and provide counseling to those who are out of work and receiving unemployment benefits.

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These efforts include widespread communication about the significance and value of receiving a monthly pension, the disadvantages of opting for a lump-sum withdrawal, and the benefits of participating social insurance to later receive higher pension amounts. At dialogue sessions, Hue Social Security Office introduces real-life examples of retirees who live happily and healthily with a pension and health insurance cards, aiming to help workers understand and trust the system.

According to statistics from the Hue Employment Service Center, the city currently has over 9,000 workers receiving unemployment benefits. To help these individuals continue to participate in the social security system, Hue City Social Security office has organized dialogue sessions, training courses, and communication activities to encourage voluntary social and health insurance participation.

These efforts have contributed to over 20,100 people in the province joining voluntary social insurance and 472,000 people participating in family health insurance, while reducing the number of people withdrawing their lump sum social insurance.