Some recommendations to improve the pension regime in Vietnam

Abstract

Retirement is a major regime in the social insurance policy andincludes both compulsory and voluntary in the social security system in Vietnam and many other countries. Practice shows that the regime is in fact the core and important pillar in the national social security system, contributing to improving the life of laborers upon their end of working age and lightening the burden on welfare society. After 60 years of implementation, the retirement regime in Vietnam has gradually improved towards the benefit of workers. Through studying the implementation of modern regimes, the author points out some fundamental limitations in the regime such as: (i) low coverage; (ii) the salary paid to the retirement and survivorship fund is still very low, approximately equal to the average pension of people enjoying the pension scheme; (iii) imbalance between –funding and payment ratio causing liabilities for the fund; (iv) the imbalance between the systems of world participation, this is a burden to the young generation... These limits are preventing the effective implementation of the regime in particular and the preservation of social security in general. Hence, the author proposes some policies to contribute to the improvement of the regime in the future.