The Social Insurance Agency has recommended that workers refrain from withdrawing their social insurance in a lump sum when they retire. Instead, they are encouraged to continue contributing to social insurance, which can lead to pensions that are eight times greater than their monthly contributions.

For instance, a 38-year-old woman named Hồng Thắm from Vĩnh Long has been contributing to mandatory social insurance since 2011. She inquired whether she could withdraw her social insurance after one year of unemployment. The Vĩnh Long Social Insurance Agency clarified that according to Article 70 of the Social Insurance Law, workers can withdraw their social insurance in a lump sum under specific conditions, such as reaching retirement age without having contributed for at least 15 years, emigrating, suffering from severe illnesses, or having a disability.

Moreover, individuals who have contributed to social insurance before July 1, 2025, and have not participated in mandatory or voluntary social insurance for 12 months, as well as those who have not contributed for 20 years, are also eligible for a lump-sum withdrawal. This regulation applies to certain military personnel upon discharge who do not qualify for a pension and do not continue their social insurance participation.

Despite her eligibility to withdraw, the Vĩnh Long Social Insurance Agency advised Hồng Thắm against this option. They emphasized the importance of preserving her contributions to ensure a stable financial future through a pension. Withdrawing her social insurance would mean losing out on monthly pension payments and free health insurance, which covers 95% of medical costs. Additionally, withdrawing would result in a significantly lower payout compared to the total contributions made.

Furthermore, her family would lose the right to funeral benefits and survivor benefits if she were to withdraw her contributions prematurely. By keeping her contributions active, Hồng Thắm would maintain her rights and benefits, allowing her to enjoy a stable income in retirement and reduce financial burdens on herself and her family.

If she decides not to continue working, Hồng Thắm can opt for voluntary social insurance, as the government has introduced various support policies for participants. For example, if she contributes at the minimum income level for social insurance (1,500,000 VND per month), her monthly contribution would be around 330,000 VND. After applying government support, her actual payment could be as low as 165,000 VND per month for those in poverty, or slightly higher for other categories.

According to the Vietnam Social Insurance Agency, if a worker contributes voluntarily at the lowest rate for 20 years, a male worker could receive a pension of approximately 1,145,000 VND per month, while a female worker could receive around 1,399,000 VND, which is about eight times their monthly contribution. This highlights the significant benefits of continued participation in social insurance for a secure retirement.