Firstly, regarding monthly retirement pension: choosing to get the one-time social insurance allowance, employees will lose the opportunity to get a retirement pension to support their lives when they get old. The pension levels are not fixed at the time of retirement and will be adjusted periodically to increase and help people stabilise their lives.

Since 1995, the State made 22 adjustments to retirement pensions, monthly social insurance allowances of retirement pension beneficiaries and monthly social insurance allowances. Accordingly, the rates of retirement pensions, monthly social insurance allowances of pension receivers and general monthly social insurance allowances increased by 21.5 times. Over the past two years, although the country’s economy faced many difficulties, the retirement pension was increased 7.4 per cent from January 1, 2022. This showed that the State paid great attention to the incomes of retirement pension receivers.

Secondly, regarding health insurance benefits: Retirement pension receivers will be provided with health insurance cards free of charge with a high level of benefits (the health insurance benefit of retirement pension receivers is 95 per cent while the health insurance benefit level of household health insurance participants is 80 per cent). When getting old, people will face risks of illness and disease, so financial sources from the health insurance fund will help to ease economic pressure for their family members.

Firstly, regarding monthly retirement pension: choosing to get the one-time social insurance allowance, employees will lose the opportunity to get a retirement pension to support their lives when they get old. The pension levels are not fixed at the time of retirement and will be adjusted periodically to increase and help people stabilise their lives.

Since 1995, the State made 22 adjustments to retirement pensions, monthly social insurance allowances of retirement pension beneficiaries and monthly social insurance allowances. Accordingly, the rates of retirement pensions, monthly social insurance allowances of pension receivers and general monthly social insurance allowances increased by 21.5 times. Over the past two years, although the country’s economy faced many difficulties, the retirement pension was increased 7.4 per cent from January 1, 2022. This showed that the State paid great attention to the incomes of retirement pension receivers.

Secondly, regarding health insurance benefits: Retirement pension receivers will be provided with health insurance cards free of charge with a high level of benefits (the health insurance benefit of retirement pension receivers is 95 per cent while the health insurance benefit level of household health insurance participants is 80 per cent). When getting old, people will face risks of illness and disease, so financial sources from the health insurance fund will help to ease economic pressure for their family members.

 Retirement pension is an important and stable source of income for those who stop working.

Thirdly, regarding survivors’ benefits: During the time when employees are eligible to get retirement pensions, if they die, their relatives will get benefits as follows:

- Funeral allowance of 10 months of the basic minimum wage when he/she dies.

- Receiving monthly death gratuity: relatives of the deceased employees who are eligible for a retirement pension will get a monthly death gratuity if they are classified as cases regulated by Clause 2, Article 67 of the 2014 Law on Social Insurance. Particularly, the maximum number of each deceased employee’s relatives who are eligible to get the monthly death gratuity is four.

The monthly death gratuity of each relative of the deceased employee is equivalent to 50 per cent of the basic wage. In case the relatives do not have direct raisers, their monthly death gratuity is equivalent to 70 per cent of the basic wage.

- One-off death gratuity (in case the relatives do not meet requirements to get monthly death gratuity): The level of the one-off death gratuity for relatives of the deceased employees, who die when they are eligible for retirement pension, are calculated based on the period the employees received retirement pensions. If he/she dies within the first two months of retirement pension enjoyment, the allowance for the relatives must be equivalent to 48 months of the employees’ retirement pension. If the employees dies in the following months, the allowance is reduced by half of the employees’ monthly retirement pension for each additional month the relatives getting the retirement pension (minimum of three months of retirement pension).

So it can be seen that social insurance participants are entitled to many benefits during the period when they get the retirement pension. Even when they die, their relatives are also eligible for survivors’ benefits.

Health insurance is considered “firm support” for the elderly.

For employees who die when they are paying social insurance premiums or reserving his/her social insurance payment period, their relatives are also eligible for monthly or one-off death gratuity. The level of death gratuity is calculated based on the duration of the employees’ social insurance contribution. For each year of contribution, the relatives are entitled to the death gratuity equivalent to 1.5 times the employees’ average monthly salary before 2014; and two times of the employees’ average monthly salary for their payment after 2014, If the employees paid for a full 12 months of compulsory social insurance premiums, their relations will get a funeral allowance equivalent to 10 times the employees’ basic wage calculated at the time of their death.

Many people who received one-time social insurance allowance wanted to pay back the allowance when they get old to continue to participate in social insurance with the aim of getting a retirement pension. However, these cases cannot be handled due to a lack of regulations. 

A citizen participating in social insurance will get huge benefits when they retire. Retirement pension is important for the life of old people. They not only get monthly pension but also healthcare. This can be demonstrated during difficult times caused by the COVID-19 pandemic over the past two years. The economy was seriously affected and people had to face many risks when they had no incomes and suffered sickness or diseases. In such circumstance, the monthly retirement pension and health insurance benefits are considered a life-saving source for them.

Therefore, before deciding to get the one-time social insurance allowance, employees should carefully consider benefits they will get when they retire, particularly in the future, the State will adjust the conditions to get retirement pensions by reducing the number of years of social insurance contribution from 20 years to 15 years; and develop the multi-level social insurance system to create conditions for employees to get easier access to and get benefits from the retirement regime./.

Retirement pension is an important and stable source of income for those who stop working

Thirdly, regarding survivors’ benefits: During the time when employees are eligible to get retirement pensions, if they die, their relatives will get benefits as follows:

- Funeral allowance of 10 months of the basic minimum wage when he/she dies.

- Receiving monthly death gratuity: relatives of the deceased employees who are eligible for a retirement pension will get a monthly death gratuity if they are classified as cases regulated by Clause 2, Article 67 of the 2014 Law on Social Insurance. Particularly, the maximum number of each deceased employee’s relatives who are eligible to get the monthly death gratuity is four.

The monthly death gratuity of each relative of the deceased employee is equivalent to 50 per cent of the basic wage. In case the relatives do not have direct raisers, their monthly death gratuity is equivalent to 70 per cent of the basic wage.

- One-off death gratuity (in case the relatives do not meet requirements to get monthly death gratuity): The level of the one-off death gratuity for relatives of the deceased employees, who die when they are eligible for retirement pension, are calculated based on the period the employees received retirement pensions. If he/she dies within the first two months of retirement pension enjoyment, the allowance for the relatives must be equivalent to 48 months of the employees’ retirement pension. If the employees dies in the following months, the allowance is reduced by half of the employees’ monthly retirement pension for each additional month the relatives getting the retirement pension (minimum of three months of retirement pension).

So it can be seen that social insurance participants are entitled to many benefits during the period when they get the retirement pension. Even when they die, their relatives are also eligible for survivors’ benefits.

Health insurance is considered “firm support” for the elderly

For employees who die when they are paying social insurance premiums or reserving his/her social insurance payment period, their relatives are also eligible for monthly or one-off death gratuity. The level of death gratuity is calculated based on the duration of the employees’ social insurance contribution. For each year of contribution, the relatives are entitled to the death gratuity equivalent to 1.5 times the employees’ average monthly salary before 2014; and two times of the employees’ average monthly salary for their payment after 2014, If the employees paid for a full 12 months of compulsory social insurance premiums, their relations will get a funeral allowance equivalent to 10 times the employees’ basic wage calculated at the time of their death.

Many people who received one-time social insurance allowance wanted to pay back the allowance when they get old to continue to participate in social insurance with the aim of getting a retirement pension. However, these cases cannot be handled due to a lack of regulations. 

A citizen participating in social insurance will get huge benefits when they retire. Retirement pension is important for the life of old people. They not only get monthly pension but also healthcare. This can be demonstrated during difficult times caused by the COVID-19 pandemic over the past two years. The economy was seriously affected and people had to face many risks when they had no incomes and suffered sickness or diseases. In such circumstance, the monthly retirement pension and health insurance benefits are considered a life-saving source for them.

Therefore, before deciding to get the one-time social insurance allowance, employees should carefully consider benefits they will get when they retire, particularly in the future, the State will adjust the conditions to get retirement pensions by reducing the number of years of social insurance contribution from 20 years to 15 years; and develop the multi-level social insurance system to create conditions for employees to get easier access to and get benefits from the retirement regime./.