Vietnam: Most citizens grow old without retirement funding plans
Many Vietnamese citizens likely to grow old without any savings or retirement plan due to low income and lack of access to elderly care.
Ms Luong Thi My Hanh, head of domestic asset management at investment fund Dragon Capital Vietnam, said most Vietnamese workers do not have a retirement plan and are focused merely on meeting daily needs, according to a report in VnExpress.
Most of them save for short-term goals and usually spend all the money they have, she added.
Over 11.4m Vietnamese were aged 60 or more in 2019 when there was one senior citizen among every nine people.
The United Nations Population Fund has forecast that by 2030, Vietnam will have one elder in every six people, and it is set to enter the ageing population stage in 2040.
However, only around 27% of elders in Vietnam have pensions and stable incomes. The remaining 73% face financial difficulties, which means they have to continue working or become dependent on their children.
Around 40% of the Vietnamese population in Vietnam have to work until they are 70-74 years old, according to the United Nations.
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