Le Thi Thu, 66, from Bac Tu Liem district in Hanoi, retired early in 1991 due to health issues after working for decades in the food industry. After multiple adjustments in pension policy, her pension increased to VND2.5 million on July 1, 2024.

“Despite several increases, my pension isn’t enough for my husband and me to cover expenses, especially with frequent hospital visits for joint issues. We can’t work, so we rely on our children,” Thu said.

Le Van Hung, 65, from Thanh Hoa City, said he served in the navy for nearly 20 years. In 2000, after suffering from a herniated disc in his spine, it was determined that he had lost 61 percent of his health and received disability benefits as a war invalid. Initially, his pension was only VND170,000 a month. After more than two decades, he now receives VND4.6 million a month.

Still, this pension isn’t enough for a stable retirement. Struggling with a nearly VND100 million debt from 2023 home repairs, Hung and his wife have extra jobs. Hung works as a security guard in HCM City, while his wife works as home help in Thanh Hoa City.

“We have no other choice than living apart. Our pension can’t support us, and our kids are financially strained, so we can’t depend on them,” Hung said.

Nationwide, there are nearly 3.4 million people receiving monthly pensions and social insurance benefits. The average pension in 2024 was about VND6.2 million/month, but it was not equal among groups.

Many people, who retired before 1995 or those with short social insurance contribution periods receive under VND3 million/month, sometimes below regional minimum wages. Over the years, pensions have increased 21-26 times since 1995, yet gaps between retiree groups persist, creating challenges.

Pension adjustments for low-income earners 

The gap between those retiring at standard age and early retirees has long been recognized. Early retirees receive lower pensions due to shorter social insurance contribution periods or lower contribution rates. Many elderly now even receive pensions below the minimum living standard.

Bui Sy Loi, former Deputy Chair of the National Assembly’s Social Affairs Committee, explained that pensions depend on social insurance contributions during one’s career, varying significantly across eras, leading to notable disparities among retiree groups.

Those retiring before 1993 often have low pensions as per the policies and contribution rates at that time. The state has many times increased pensions for this group to ensure their welfare and living standards. 

Loi argued that this trend must continue at a faster pace for low-pension groups to secure a minimum living standard, improve quality of life, and access social services equitably.

“There should be new policies with bolder adjustments for those with very low pensions to narrow gaps and ensure social fairness. This reflects the humane nature of social welfare policies for those who contributed during the nation’s tough times,” Loi said.

Sharing the same view, a labor expert called for pension adjustments that “compensate” rather than just offset inflation. “We need more humane policies for those who dedicated their lives to the country’s development, especially poor workers, early retirees, or those retiring under restrictive policies. Otherwise, their lives will grow harder as prices soar,” the expert noted.

In the first four months of 2025, over 27,000 people received pension settlements, nearly double the same period last year, which meant a 95.47 percent increase, according to Vietnam Social Security (VSS).

The agency attributed this surge to the increase in the number of early retirees and resignations under government streamlining policies as per Decrees 177 and 178/2024/ND-CP.

By May 2025, an estimated 19.56 million people participated in social insurance, 15.7 million in unemployment insurance, and 93.56 million in health insurance. Notably, one-time social insurance withdrawals dropped sharply, with over 91,000 cases, down 18.8 percent from last year.

This positive trend shows that workers have been increasingly aware of the long-term benefits of maintaining social insurance for at least 15 years under the 2024 Social Insurance Law, reflecting the law’s growing impact, even before its official enforcement.

Vu Diep