Retirement age continues to increase by 3-4 months

From January 1, 2024, the retirement age for male workers under normal working conditions is 61 years and 4 months for women, increasing by three and four months respectively.

The retirement age will increase according to the roadmap prescribed by the Labor Code, effective from 2021, until men reach 62 years old in 2028 and women reach 60 years old in 2035.

Workers who want to retire early, in addition to paying 20 years of social insurance, must have a work capacity reduction assessment of 61% or more. Those who do not meet the above reduction rate are not eligible for early retirement.

The early retirement period shall not exceed 5 years for workers with a working capacity reduction of 61% to less than 81% and shall not exceed 10 years for workers with a working capacity reduction of over 81%. For each year of early retirement, the worker's pension rate shall be deducted by 2%.

Retirement age will increase by 3 months per year for men and 4 months per year for women from 2021. Graphics: Viet Chung

The conditions for receiving pensions have also been raised in line with the retirement age. This year, workers working under normal conditions are eligible for pensions if they are 61 years old for men and 56 years and 4 months old for women and have participated in social insurance for 20 years.

The benefit level is 45% of the average salary used to pay social insurance, with each year of participation accumulating an additional 2%. To receive the maximum pension, female workers must pay social insurance for 30 years and male workers must pay social insurance for 35 years.

The Ministry of Labor, War Invalids and Social Affairs assessed that the regulation on raising the retirement age according to the roadmap will help increase the number of people working past retirement age each year, reducing the situation of early retirement. By the end of 2022, workers will retire at an average age of 56.6, up from 55.8 years old in 2016. Workers will pay an average of 29.9 years of social insurance before retiring.

Elderly people in Hanoi relax by Hoan Kiem Lake, August 2023. Photo: Ngoc Thanh

The maximum pension rate of Vietnamese people is up to 75%, high compared to some countries in the region, but the average pension is only 5.4 million VND due to the low salary base for social insurance contributions.

Nationwide, there are 2.7 million elderly people currently receiving pensions from the Social Insurance Fund, while the number of workers participating in the system is 17.5 million. On average, for every 6.5 people paying social insurance, there is one pensioner. In 1996, there were 217 people paying for one beneficiary; in 2000, the number of people paying was 34, and in 2016, there were 9 people paying for one beneficiary.

Hong Chieu

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