Navigating Vietnam's New Retirement Reality: What Every Family Needs to Know

When my uncle Hùng retired last month after 30 years at the same factory in Biên Hòa, his experience looked nothing like my grandfather's retirement two decades ago. Where grandfather simply received his pension booklet and moved back to our family home in Đồng Nai province, Uncle Hùng spent months navigating complex paperwork, researching private investment options, and calculating healthcare costs.This stark contrast illustrates how retirement in Vietnam is transforming before our eyes. As our traditional family support systems evolve and policy reforms reshape our options, we need new approaches to ensure our elders—and eventually ourselves—can enjoy the dignified retirement every hardworking Vietnamese deserves.

Understanding the Shifting Ages: What's Changing in 2025

This year marks a significant milestone in Vietnam's ongoing retirement age adjustments. Men now retire at 61 years and 3 months, while women retire at 56 years and 8 months. For context, I spoke with Bà Hương at the local market in District 3, who sells vegetables six days a week despite being 63."I'm working by choice now," she told me, eyes crinkling with subtle pride. "My daughter wanted me to stop when I reached retirement age, but what would I do all day? Plus, the extra income helps pay for my grandchildren's English classes."Bà Hương represents a growing number of Vietnamese seniors who continue working past retirement age—some by necessity, others by choice. By 2028, men's retirement age will reach 62, and women's will gradually increase to 60 by 2035. These changes reflect our government's response to our rapidly aging population, with Vietnam projected to become an aged society by 2036.

The Social Insurance Reform That Affects Every Family

The most significant change this year is the implementation of the Social Insurance Law of 2024, effective since July 1, 2025. This isn't just another bureaucratic adjustment—it represents a fundamental shift in how retirement security works in our country.What matters for your family:

More people can qualify for pensions now. The minimum contribution period has dropped from 20 to 15 years. This especially benefits workers with interrupted careers, like Chị Mai, a 48-year-old seamstress I met in Hồ Chí Minh City who took years off to raise her children.

The informal sector gets recognition. If you're self-employed, run a small street food stall, or work as a motorbike driver, the new system makes it easier to participate. My cousin Tuấn, who runs a phở stall near Bến Thành Market, has never had formal social insurance but can now opt in.

A safety net for our elders. Citizens over 70 who don't receive pension benefits can now access a state-funded social pension. When I explained this to my neighbor's mother, who has relied solely on her children's support, she smiled with relief, saying: "It's not much, but it acknowledges my lifetime of work."While these changes strengthen our social safety net, I must be clear: relying solely on government pensions will likely provide only basic subsistence, not the comfortable retirement many dream of. The monthly pension often ranges from 3-5 million VND—hardly enough in our major cities where a modest apartment rental alone can cost twice that amount.

Healthcare: The Hidden Retirement Challenge

"I saved adequately for my daily expenses," shared Ông Đạt, a retired teacher living in Hà Nội's Old Quarter. "What caught me unprepared were my wife's hospital bills when she developed diabetes complications. Without our children's help, I don't know how we would have managed."The 2025 Health Insurance Law has improved access to care, with 100% coverage now available for primary and inpatient treatment at designated facilities. The removal of referral requirements for serious conditions is particularly beneficial for retirees living in rural areas who previously faced bureaucratic hurdles.Yet gaps remain. Prescription medications, specialized treatments, and long-term care costs can quickly deplete savings. From my conversations with dozens of retirees across Vietnam, I've found healthcare expenses are consistently their greatest financial concern.

The Generational Mindset Shift

When I asked students in my former economics department about retirement planning, their answers revealed a dramatic shift from traditional thinking.Trần Minh, a 24-year-old software developer, told me: "My parents expect to live with me when they're older, and I'll support them. But for my own retirement, I'm investing in mutual funds and real estate. I can't assume my future children will support me—if I even have children."This reflects a broader trend among younger Vietnamese, who are:

• Starting retirement planning earlier (often in their 20s rather than 40s)
• Relying less on filial support as family sizes shrink
• Diversifying investments beyond property and gold
• Questioning the tradition of supporting aging parents while raising children