Survey Reveals Concerns Over Financial Independence in Old Age in Vietnam

The recent survey conducted by Prudential Vietnam has shed light on a concerning trend among the middle-aged population in Ho Chi Minh City and Hanoi. The survey revealed that only 4 out of 10 respondents aged between 30-45 years old are confident of being financially independent in their old age.

“The Prudential survey reflects the current social picture. Our goal is to change the perception among the community so anyone can start preparing for independent seniority,” said Phuong Tien Minh, CEO of Prudential Vietnam.

Vietnam is currently in its demographic window period, where the proportion of the labor force is double the number of dependents. However, from 2040, the country will transition into an aging population period, which will put considerable pressure on social security due to the low ratio of independent seniority.

Nguyen Xuan Truong, director general of Population Structure and Quality Department, highlighted that nearly 30 percent of senior citizens in Vietnam are living alone in rural areas, with only 25.5 percent of them relying on pensions and social benefits. This poses a significant challenge for the younger generation and social security systems.

Giang Thanh Long, associate professor at the National Economics University, emphasized the importance of early financial planning to prepare for the aging population period. He suggested that insurance organizations, banks, and other financial institutions should actively participate in providing life insurance-related services to support individuals in achieving financial freedom and independent seniority.

Phuong Tien Minh reiterated the importance of personal financial planning, stating that the earlier one prepares, the easier it is to achieve financial independence in old age. While government leaders work on resolving macro issues, individuals can take proactive steps to secure their financial future.