The Ministry of Labor, Invalids and Social Affairs has just reported on receiving comments from the Government Standing Committee on the draft Law on Social Insurance (amended), including content related to reducing the age of receiving social retirement benefits.
The Ministry of Labor, Invalids and Social Affairs estimates that if the age of receiving social pension benefits is reduced from 80 to 75, about 800,000 more people will receive social pension benefits.
Explaining the Government Office's opinion on agreeing to reduce the age of receiving social pension benefits even lower, the Ministry of Labor, Invalids and Social Affairs said that Resolution No. 28-NQ/TW has set out the direction of "gradually adjusting the age of receiving social pension benefits in accordance with the budget's capacity". The Ministry of Labor, Invalids and Social Affairs agrees with the Government Office on the view that it is necessary to adjust and reduce the age of receiving social pension benefits.
However, based on the socio-economic situation and the capacity of the State budget, in the immediate future, the Ministry of Labor, Invalids and Social Affairs proposes that in the draft Law on Social Insurance (amended), the age of receiving social pension benefits should be immediately reduced from 80 years old to 75 years old; at the same time, the Government should report to the National Assembly to decide on gradually reducing the age of receiving social pension benefits in accordance with the capacity of the State budget in each period.
In the coming time, when socio-economic development conditions and the State budget capacity allow, the Ministry of Labor, Invalids and Social Affairs will, together with the Ministry of Finance and related ministries and branches, continue to research and propose to further reduce the age, in order to both expand the beneficiaries of social pension benefits and at the same time encourage people to participate in voluntary social insurance.
According to the Ministry of Labor, Invalids and Social Affairs, studies by the International Labor Organization (ILO), the World Bank (WB) and practical assessments in Vietnam show that to ensure consistency between policies and encourage people to participate in voluntary social insurance, the age for receiving social pension benefits should be reduced to at least 70 years old.
It is estimated that if the proposal is passed, it will expand the number of beneficiaries of social pension benefits by about 800,000 people.
The Ministry of Labor, Invalids and Social Affairs also believes that reducing the age of eligibility will help the elderly have more money to improve their lives and reduce pressure on localities with limited budgets, because the money to pay subsidies for people over 80 years old is currently the responsibility of provinces and cities.
Previously, contributing ideas to the draft revised Law on Social Insurance, the Vietnam Women's Union also proposed reducing the age for receiving social pension benefits.
According to this agency, the roadmap to reduce the age of receiving social pension benefits is consistent with the provisions of the 2013 Constitution, citizens have the right to social security. People aged 60 - 69 will be the largest group in need of social pension benefits, but are not eligible to receive them.
The International Labor Organization predicts that without support from the state budget, by 2030 Vietnam will have over 16 million elderly people without pensions, due to the aging rate occurring faster than the economic growth rate.
Social pension is a state budget amount given to the elderly over 80 years old who do not have a pension or monthly social insurance benefits.
The coverage of social security for the elderly after retirement age nationwide is only 35%; of which 2.7 million people receive pensions, 630,000 people receive monthly social insurance benefits and more than 1.8 million people receive social retirement benefits.
Resolution 28 of the Central Committee sets the target of social security coverage for the elderly at 55% by 2025 and about 60% by 2030.
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