Despite stable income, many middle-aged people are being exhausted by the burden of taking care of both families, leaving their own retirement funds in limbo.
At the end of last year, when his savings reached 2 billion VND, Mr. Manh Tin, 42 years old, discussed with his wife to exchange the apartment he was living in in Yen Nghia ward (Hanoi) for a central apartment. The new house will shorten the daily commute by two hours and give the children a better learning environment.
But his wife, Ms. Pham Phuc, objected. For her, the money saved after nearly 15 years of marriage is not to change the house. He and his wife are both civil servants, with a total income of less than 40 million VND a month. In the countryside, both parents are approximately 70 years old and no one has a pension. "Up above we still have old parents, below we have young children, we ourselves do not have any money to protect ourselves in old age," she said.
The house exchange discussion stopped.
Mr. Tin's family's story represents millions of people of the "sandwich" generation in Vietnam - people who are stuck between the responsibility of taking care of children and taking care of their parents. According to the Department of Statistics, the country currently has nearly 27 million people in the 40-59 year old group, with about 700,000 more people entering the elderly group each year. The aging rate is rapid but financial preparation is limited, especially for the self-employed group, with up to 55% not participating in social insurance and only about 3% purchasing voluntary insurance.
Faced with this reality, the Ministry of Health has just proposed to guide people over 40 years old to prepare for old age. This age group will have access to documents and training on maintaining a lifestyle, financial planning and choosing a job.
According to Professor Dr. Giang Thanh Long (National Economics University), Vietnam's "golden population" structure is expected to end in 2038, while the "aging population" threshold will come earlier in 2034.
Age 40 is usually when the job is stable, income is relatively stable and the ability to generate income is at a high level. This is also the time when your health is still good enough to change your lifestyle, prevent diseases and prepare for the years ahead. "The 40-year-old milestone symbolizes the time to gather enough resources to plan, but in reality, the earlier you prepare, the better your advantage," said Professor Long.
But the gap between awareness and action is still very large. Manulife Asia Care 2026 data recorded that 89% of respondents considered financial independence to be the greatest asset they want to leave to their children. However, only 27% started investing to create cash flow, 40% maintained exercise and 31% had regular health screenings.
In fact, age 40 is the time to reach the peak of ability and income, but it is also the time when cash flow is divided between children, debt and elderly parents. Preparing for their own retirement is often pushed to the bottom of the priority list.
Old age comes after bills
Earlier this year, Ms. Diem Le and her husband, 38 years old in Cau Dien ward, Hanoi, paid off their apartment debt. With an income of 45 million VND, minus living expenses and supporting both parties, they plan to save 5-10 million VND each month.
But by mid-year, the 50 million VND accumulated had evaporated. The two children were hospitalized one after another, and then the father-in-law in the countryside had to be treated for a stomach ailment. "I thought I had a surplus, but as soon as one additional amount arose, I was in a deficit," Ms. Le said.
Large sums of money from Tet bonuses are also planned: last year to pay off the house debt, this year to repair the house in the countryside, next year to buy a car to conveniently visit parents.
The mentality of "emptying your pockets" for previous and future generations like Ms. Le is a cultural characteristic in Asia. Prof. Dr. Peiyi Lu, Director of the Master of Gerontology program, University of Hong Kong, said that providing for children and taking care of parents is closely linked to filial piety. "It is a daunting challenge when family resources are limited," Professor Lu said.
Professor Lu's research shows that financial exhaustion in middle age is the seed for an unstable old age. The lack of emergency funds forces many people to continue selling manual labor into the afternoon, accelerating the risk of chronic disease.
The Asia Retirement Report published by Sun Life in early 2026 in 6 markets, including Vietnam, showed that 69% of respondents expected to continue working after retirement age. Nearly two-thirds admit to not having enough money to retire. There are 36% of people in the "sandwich" generation who accept lowering their quality of life to give resources to their family.
Build a safety net from 10,000 VND per day
Ms. Nguyen Thoa, a social insurance expert, said many people mistakenly believe that they must have a large sum of money to be able to think about retirement. She affirmed that the power of a pension fund lies in its gradual accumulation.
Ms. Nguyen Thi Lien, 50 years old in Nam Dinh, works as a mason's assistant with an income of 6-7 million VND a month. As the breadwinner for her blind husband and college-educated daughter, she said she had little extra money so she did not deposit it in the bank.
When advised about the voluntary social insurance payment rate of 264,000 VND per month, Ms. Lien decided to participate. "Every day I can save 10,000 VND," she said. Up to now, she has paid for 5 years, and is expected to receive a pension of about 1 million VND a month at the age of 60 and have a health insurance card.
Ms. Nguyen Thu Giang, Financial Advisor at FIDT, considers retirement to be a tougher financial goal than buying a house or raising children. This goal lasted for decades while labor power declined. For families like Ms. Le, Ms. Giang advises that they first need to set up a reserve fund to last 6 months and buy basic insurance packages. As for a family with 2 billion VND like Mr. Tin, she supports the decision to keep the money for protection instead of putting it all into changing a central house.
"If resources are not enough to meet all goals, people preparing to retire should prioritize their own safety first, instead of putting too much into housing or leaving assets to their children and grandchildren," Ms. Giang said.
Individual support needs to go hand in hand with policy support. According to Professor Peiyi Lu, aging is not limited to money, but is a combination of an ecosystem including: strong finances, good health and a strong social network.
Therefore, public policies and social programs play an important role. "Initiatives to promote financial knowledge and long-term planning will help people make wise decisions early, reducing the pressure of struggling in old age," Professor Lu said.
Professor Giang Thanh Long emphasized that the state needs to design security policies that are flexible enough to pull people into the safety net. For the group of low-income workers who always have to put "food, clothes, rice, money" first, there needs to be a support mechanism so they can maintain the cash flow to pay social insurance instead of giving up halfway. "A 'golden' economy when young and healthy, if not exploited, cannot create a 'silver' economy in old age," Mr. Long said.
The consequences of missing the provision period are evident in cases where pensions are not available. Ms. Nguyen Thi Hon, 75 years old in Thanh Hoa, lives alone after her daughter got married. Previously, she worked in the fields and took care of children, but now her main income is from selling vegetables from her garden.
Last July, she received her first month of social benefits worth 500,000 VND for elderly people without pensions. She calculated that this amount was enough to measure 10 kg of rice for a month, and put the rest away to buy medicine.
"With this allowance, every month my bones and joints hurt and I can't go to the market. I don't have to rely on my children," she said.
