Financial literacy and retirement planning in Vietnam

Abstract

Abstract : In the context of a “getting old before getting rich” population, pension schemes in Vietnam are now facing many challenges which may lead to depletion in 2034 if no effective reform takes place shortly. Though there is still no blueprint for a nationwide reform, household behavior adjustments such as better retirement preparedness and planning may create important changes. By examining the current state of financial literacy and the elderly’s financial situation, the research reveals that financial literacy is of primary importance for retirement security in Vietnam.