Preparation for Old Age of Informal Sector Workers in Rural Hanoi Today

Abstract

The article analyzes factors affecting the preparation for old age among informal sector workers in the context of Vietnam’s population aging. Survey results indicate that due to unstable incomes and lack of social insurance, workers in informal employment must rely on personal savings and proactively participate in insurance schemes to secure their livings in old age. Men, older individuals, families with fewer children, and those with one or two primary breadwinners tend to be better prepared. However, low income and high healthcare costs remain significant barriers. Own-account workers primarily choose savings, side jobs, or investments for financial preparation; voluntary health insurance is prioritized due to affordability, while life insurance is viewed as a combined savings and protection solution. Financial and insurance awareness is influenced by gender, number of children, family structure and health care spending.