'Reduce years of social insurance payment to have more opportunities to receive pension'

On the afternoon of December 15, the National Assembly Standing Committee gave opinions on the National Assembly's petition work in October and November 2022. The petition work report showed that voters were worried about the situation of one-time withdrawal of Social Insurance (SI).

Speaking at the meeting, Mr. Chu Manh Sinh - Deputy General Director of Vietnam Social Security said that in the period 2016-2021, more than 4 million people withdrew their social insurance at one time.

Mr. Chu Manh Sinh calculated that on average, there are more than 800,000 people each year. According to him, the number of people withdrawing social insurance at one time is always higher the following year than the previous year, with an average growth rate of about 11.6%.

Mr. Chu Manh Sinh - Deputy General Director of Vietnam Social Security. Photo: Huong Giang

The Deputy General Director of Vietnam Social Security said that the cause of the above problem is partly due to the negative impact of the Covid-19 epidemic in the past 2 years, causing many difficulties for people's lives.

It is estimated that about 895,500 people will withdraw in 2022. “Many cases can only rely on a one-time withdrawal of social insurance to cover their living expenses,” said Mr. Sinh.

To overcome the above situation, according to Mr. Sinh, the State needs to have comprehensive solutions of a macro nature, promote economic growth, expand production and business, create jobs, increase income, and improve the material and spiritual life of workers.

In addition, when amending the Social Insurance Law, it is necessary to gradually reduce the minimum number of years of social insurance contributions to receive retirement benefits, creating conditions for workers to have more opportunities to receive pensions.

Speaking at the meeting, Chairwoman of the National Assembly's Social Committee Nguyen Thuy Anh said that the Committee had conducted specialized supervision, including raising many issues of concern related to the one-time withdrawal of social insurance.

According to Ms. Thuy Anh, during the 2016-2021 period, more than 4 million people withdrew their social insurance at one time, while the number of additional people increased by only 4.23 million people.

“That is also a matter of concern,” said Ms. Thuy Anh, adding that the number of people re-participating in social insurance among those who withdrew social insurance at one time was 140,000 people, only 3.5%.

Vice Chairman of the National Assembly Tran Quang Phuong said that the increase in the one-time withdrawal of social insurance in 2022 is a "normal phenomenon even in an abnormal period". "It is not correct to say that it is not abnormal. There also needs to be a solution to handle it effectively", the Vice Chairman of the National Assembly emphasized.