Vietnam seeks to raise retirement age

The Vietnamese Ministry of Labour, Invalids and Social Affairs has proposed raising retirement ages from the current 60 to 62 for men, and from 55 to 60 for women from 2021.

“Increasing retirement ages will ensure the balance of the timeframe, the social insurance employees’ payment, and the retirement or survivor pensions,’’ the ministry said on Tuesday.

The ministry cited calculations by the International Labour Organisation that retirement and survivor funds will face overspending from 2023 in Vietnam.

To ensure the funds’ sustainable operation without raising retirement ages, either employees and employers will have to pay bigger social insurance or employees will receive smaller retirement pensions.

“However, lifting rates of social insurance employees’ and employers’ payments would increase financial burden for them and decrease business competitiveness.

“While slashing retirement benefits will negatively affect pensioners’ life,’’ the ministry said.

Draft amendments to the Labour Code, including proposed hike in retirement ages, are scheduled to be submitted to Vietnam’s National Assembly, the country’s top legislature, in 2019.