Towards a universal pension policy.

The universal pension policy, or in other words, ensuring that all citizens receive a pension in old age, is being implemented successfully in many countries around the world, especially in Sweden. Currently, Vietnam is implementing several important solutions to ensure that all citizens benefit from this advantageous policy.

Thanks to a good social insurance policy, Swedish people can live comfortably in their old age.

In 1913, Sweden's universal pension policy was implemented. At that time, Swedish farmers constituted a large proportion of the population, while pensions were only available to workers. The government implemented a universal pension system to help farmers receive a pension, ensuring a minimum standard of living in society, and the majority of citizens would receive a pension by the age of 65.

In 1935, Sweden changed its policy to provide pensions for all citizens, including the wealthiest. In 1948, everyone received the same amount. In 1999, Sweden switched to calculating pensions based on lifetime income (instead of the last 15 years) and allowed for flexibility in retirement age. People who worked longer received higher pensions, while those who retired earlier received lower pensions, significantly reducing abuse of the pension fund.

The Swedish government also had to raise the retirement age for its citizens, not imposing a fixed age, but only stipulating that the earliest age to withdraw pensions is 61 and the latest is 67. Statistical results show that, after the reform, the average retirement age increased significantly because workers realized that retiring early would disadvantage them when receiving pensions. Overall, the Swedish pension reform is considered a success in many respects, both addressing the aging population and ensuring greater fairness. Policies like universal pensions, when implemented, will create significant changes and impacts in society, so a suitable roadmap is needed. It took Sweden 60-70 years to develop the policy as it is today.

In Vietnam today, a very high percentage of people of working age do not participate in social insurance. According to Mr. Nguyen Khac Toan, Director of the Institute for Cadre Training, Development and Scientific Research (Central Committee of the Vietnam Fatherland Front), approximately 19 million workers nationwide participate in social insurance, accounting for 33% of the total workforce. Of these, 2.8 million are civil servants, public employees, and contract workers in administrative agencies and public service units; 12 million are factory workers and employees in enterprises; 1.7 million are self-employed and voluntarily contribute to social insurance; and 2.5 million are elderly people receiving pensions. Thus, a large number (67%) of people of working age have not yet participated in social insurance.

To encourage people to participate in voluntary social insurance, the 2025 Social Insurance Law clearly stipulates the participation mechanism. Accordingly, the State provides support for poor households at 50%, near-poor households at 40%, and other eligible individuals at 20% of the monthly contribution. Despite this, the number of people participating in voluntary insurance remains low (1.7 million people).

Vietnam is undergoing a rapid aging process, with a projected elderly population by 2038. According to Lam Van Doan, Vice Chairman of the National Assembly 's Committee on Culture and Social Affairs, Vietnam needs to implement early pension reforms. Vietnam has gradually increased the retirement age according to a reasonable roadmap with a multi-tiered pension model. The State needs to encourage labor and expand the pool of contributors; at the same time, it should research appropriate pension policies for healthy elderly people to continue working after retirement age or to work part-time to receive higher pensions, thus avoiding wasting social resources.

Currently, the poverty rate among elderly Vietnamese people without pensions is quite high. A roadmap is needed to gradually expand social assistance for the elderly, aligning with economic growth and the state budget's capacity, while simultaneously increasing investment in children (combating malnutrition, bridging educational disparities between rural, urban, and remote areas). A balanced system will foster intergenerational solidarity and social consensus. Population aging also presents an opportunity for comprehensive, inclusive, and sustainable social security reforms.

According to Government Decree 76/2024/ND-CP dated June 25, 2024, amending and supplementing several articles of Government Decree 20/2021/ND-CP dated March 15, 2021, which stipulates social assistance policies for social protection beneficiaries, the standard social assistance level has been adjusted from VND 360,000/person/month to VND 500,000/person/month. This policy aims to partially support the living expenses of vulnerable individuals (people over 80 years old without pensions, severely disabled people, poor households with particularly disadvantaged children, etc.). However, the new standard is only 33.33% of the rural income poverty line, 25% of the urban poverty line, and the scope and level of assistance are still very limited, only targeting a few vulnerable groups in society.

According to Nguyen Thi Thu Hien, Vice President of the Vietnam Women's Union, implementing a universal retirement policy will help reduce the burden of caring for the elderly; create conditions for people of working age to participate in the labor market more effectively; generate more wealth for society and contribute to economic development.

According to Ms. Hoang Thi Le, Director of the International Cooperation Department, Ministry of Ethnic Minorities and Religions, to effectively implement the universal retirement policy, it is necessary to ensure adequate financial resources. These resources rely on the social insurance fund formed from contributions by workers and employers; budget support from increased personal income tax, corporate income tax, VAT, and especially taxes on small-scale, unregistered household businesses…

Moving towards a universal pension policy will effectively address social security issues and provide a safe haven for workers in their old age. However, for this policy to become a reality, it requires decisive action from relevant authorities and enthusiastic participation from workers and society as a whole.

According to Nhan Dan Newspaper

	Pension and benefit payment schedule for October nationwide.
	Those who leave their jobs due to organizational restructuring will receive their pension immediately, plus an additional 24 months' salary.
	Social insurance agency provides guidance on procedures for changing the form and location of pension and benefit payments.

Source: https://baotuyenquang.com.vn/xa-hoi/202511/huong-den-chinh-sach-luong-huu-toan-dan-2421f2e/