Pension - a solid financial support in old age
Retirement is the core of the Social Insurance policy, ensuring long-term social security for workers when they reach retirement age. Pensions are extremely important, helping workers ensure the cost of paying for basic living needs when they retire and have an additional Health Insurance card (issued free of charge during the entire retirement period) for health care.
The importance of pensions
Receiving pension from March 2023, Mr. Dinh Van Hong in Nghi Phu commune (Vinh city) said: During the process of participating in Social Insurance, there were times when his family life encountered many difficulties, he once intended to withdraw Social Insurance one time. However, after being clearly explained by Social Insurance officers about the benefits of receiving monthly pension, the disadvantages of receiving Social Insurance one time and the payment methods, the payment level suitable for his income so that he could maintain his participation in voluntary Social Insurance, Mr. Hong reconsidered and continued to participate in voluntary Social Insurance.
When I reached retirement age, but still lacked the minimum number of years of participation in Social Insurance to receive the regime, I paid a one-time payment for the missing years of participation to receive a pension. Currently, I am receiving a pension of 1,853,000 VND/month. Although the amount is not much, it helps me cover my living expenses and be financially independent. What's more enjoyable is that I have a free Health Insurance card, so every time I go to the doctor or get treatment, I feel very secure.
Mr. Dinh Van Hong in Nghi Phu commune (Vinh city)
As for Mr. Ngo Duy Cu (born in 1972), in Phuc Loc block, Vinh Tan ward (Vinh city), he works as a construction worker, his wife sells vegetables and fruits at the market, so he and his wife are always worried about their old age, when they are no longer healthy enough to work. After attending the conference to propagate Social Insurance and Health Insurance policies at the block's cultural house, he was very excited because he had relieved his long-standing worries. Mr. Cu discussed with his wife and decided to participate in voluntary Social Insurance for both husband and wife.
In addition to pension benefits, social insurance participants also enjoy many other benefits and rights. Voluntary social insurance participants will receive additional maternity benefits from July 1, 2025. For employees participating in compulsory social insurance, there will be unemployment insurance, occupational accident and disease insurance, maternity and sickness benefits, etc. In addition to receiving pensions, employees participating in social insurance when eligible for retirement will also be granted a free health insurance card, and enjoy medical examination, treatment and lifelong health care benefits paid by the health insurance fund at a rate of 95% (higher than the average rate of health insurance participants by household). In fact, the Social Insurance Agency has paid hundreds of millions of dong, even billions of dong, in medical examination and treatment costs for pensioners who suffer from serious and incurable diseases - because this age group is often prone to health problems. Not only that, during the pension period, when the pensioner unfortunately passes away, relatives will receive a death benefit with many benefits.
In particular, the pension level is not fixed at the time of retirement but is periodically adjusted to increase according to the consumer price index and economic growth. Therefore, pensioners always have their value preserved, are not at risk when the currency depreciates, helping them to have enough ability to cover the costs of ensuring life.
Humanitarian policies of the Party and State
Since 1995, the State has adjusted pensions 24 times. Even during difficult economic periods, most recently during the COVID-19 pandemic, pensions have been adjusted upward. This further demonstrates the State's policy of paying great attention to the income of pensioners. On June 30, 2024, the Government issued Decree No. 73/2024/ND-CP stipulating the basic salary and bonus regime for cadres, civil servants, public employees and armed forces; Decree No. 75/2024/ND-CP adjusting pensions, social insurance benefits and monthly allowances.
Accordingly, from July 1, 2024, an additional 15% will be added to the pension, social insurance benefits and monthly allowances of June 2024 for pensioners and monthly social insurance benefits. People who are receiving pensions, social insurance benefits and monthly allowances before January 1, 1995 (excluding beneficiaries of monthly occupational accident and disease benefits, and people who are receiving monthly death benefits before January 1, 1995), after adjusting an additional 15% increase on the pension, social insurance benefits and monthly allowances of June 2024, with a benefit level lower than VND 3.5 million/month, will be adjusted to increase. In addition, increase by 30% on the social insurance benefit level, monthly benefit of June 2024 for those receiving monthly survivor benefits from after January 1, 1995 and those receiving occupational accident benefits.
On the other hand, the system of social insurance and health insurance policies and laws is also increasingly improved in line with the country's socio-economic development, ensuring the rights of participants in general and retirees in particular. Recently, the National Assembly passed the Law on Social Insurance (amended), which reduced the minimum number of years of social insurance contributions to enjoy retirement benefits from 20 years to 15 years to create conditions for late participants, with intermittent social insurance participation, to access and enjoy social insurance benefits, meeting the wishes of the majority of workers who want to receive pensions and have health insurance cards to take care of their lives and health when they retire.
According to current regulations, the monthly pension is calculated by multiplying the monthly pension rate by the average monthly salary for social insurance contributions. Thus, the pension level is proportional to the social insurance contribution level and the social insurance contribution period. This means that the higher the social insurance contribution level and the longer the social insurance contribution period, the higher the pension level will be.
As of July 2024: In Nghe An province, there are 134,685 people receiving pension benefits, of which 20,649 are over 80 years old; The average number of years of pension benefits received by beneficiaries in Nghe An province is currently 19 years, with the highest pension level as of July 2024 being 22,270,000 VND/month.
In fact, the Social Insurance Agency - the unit implementing the policy - has received feedback from many elderly people about their satisfaction with their current pension and encouraging their children and grandchildren to fully participate in Social Insurance in accordance with regulations.
In addition, we also received many opinions sharing the regret of workers who have received Social Insurance at one time, now wishing to return the Social Insurance amount they have received at one time, continue to pay voluntary Social Insurance to receive pension and have a free health insurance card (during the entire pension period) to take care of their health. Because old age and illness are always present "uninvited", many elderly people still have to struggle to make a living and bear the pressure of hospital fees every time they are unfortunately sick.
Not only a material value, pension also brings many spiritual values, helping beneficiaries to be more confident in life, is a recognition of the labor process and contribution of each individual. Participate in Social Insurance today to ensure long-term security for yourself and have a comfortable life with your children and grandchildren when you reach retirement age./.
