Mixed reactions have surfaced over a plan to increase retirement age, a National Assembly (NA) official told a conference on labor relations held on Monday in Hanoi.

Bui Sy Loi, deputy head of the NA’s Social Affairs Committee, said there have been opinions supporting the scheme but others opposing it.

Proponents said retirement age should be increased to balance the country’s social insurance fund, he told the conference.

They argue that people pay little social insurance while at work but earn big later as they usually live long after retirement, making it necessary to extend retirement age to balance the insurance fund.

Regarding this opinion, Loi said there needs to be a principle for managing and using the fund in an equitable manner which allows people to contribute more to enjoy more and those who pay less to get less.

“I am asking Vietnam Social Insurance to announce all the information about the insurance fund by 2020 so that laborers can see how much they have paid for the fund and how much they are due to receive,” he said.

As Vietnam’s population is aging rapidly, the country has to raise retirement age, he added, suggesting that it needs careful calculations to decide new age for retirement, different retirement ages for men and women, and for laborers working different jobs in different sectors.

Those opposing the retirement age spike, meanwhile, said labor supply has outpaced demand, so extending retirement age would deprive many people of employment opportunities, said Loi.

Currently, 191,000 people of working age with bachelor degrees are unemployed nationwide, the Government said in a report released at the opening session of the 14th National Assembly (NA)’s second meeting on October 20.

In addition, they said extending retirement age will affect the country’s master plans and the process to reform the administrative system.

There are many officials who receive salaries and allowances from the State but work ineffectively while labor productivity of Vietnam is much lower than in many regional countries, and the annual growth of salary is still higher than the labor productivity growth.

The Government has suggested laying off 3,500 State officials this year and extending retirement age might affect the plan.

SGT