Việt Nam is entering a new phase of demographic change. People are living longer than ever – but many are not yet financially prepared for what those extra years may bring. This growing gap between longevity and financial readiness is emerging as a pressing challenge, according to Randy Lianggara, President of Emerging Markets, Sun Life Asia. In an interview with Việt Nam News, he explains why this issue matters now – and what needs to change before it becomes a broader social and economic strain.

Randy Lianggara, President of Emerging Markets, Sun Life Asia. — Photo courtesy of Sun Life

Việt Nam News: According to WHO, Vietnamese people are living longer. Why should this be a concern?

Randy Lianggara: Living longer is undoubtedly a positive sign of progress. It reflects advances in healthcare, education, and overall living standards. However, longevity also introduces a new reality that many individuals and societies are not fully prepared for.

Today, it is increasingly common for people to spend 20, 30 or even more years in retirement. The question is no longer whether people will live longer, but whether they can afford to live well during those additional years. Without adequate financial preparation, longer life expectancy can lead to greater financial insecurity, reduced quality of life, and increasing dependence on family members.

This challenge is becoming more pronounced as traditional family structures evolve. In the past, retirement often relied heavily on support from children and extended families. Today, families are smaller, younger generations are more mobile, and both parents and children increasingly value financial independence. As a result, the responsibility for retirement funding is shifting towards individuals.

In many ways, longevity has created a new financial life stage that previous generations did not experience to the same extent. It requires people to think beyond simply earning an income during their working years and start planning for how they will sustain their lifestyle, health, and wellbeing over a much longer retirement journey.

Việt Nam News: Why are many people, particularly in emerging markets like Việt Nam, not adequately preparing for retirement?

Randy Lianggara: One of the biggest challenges is that retirement remains a distant concept for many people, especially younger generations. When retirement is decades away, it is easy to prioritise immediate needs and postpone long-term financial planning.

This challenge is being amplified by growing cost-of-living pressures. According to our Financial Resilience Index, 84 per cent of Vietnamese consumers say inflation has made it harder to cover monthly expenses. Rising costs of food, utilities, fuel and healthcare are forcing many households to focus on today's financial obligations rather than tomorrow's needs.

This leads to what we call the “retirement gap” – the gap between what people will need in retirement and what they are currently prepared for. Our research shows that many consumers are already making short-term trade-offs to cope with financial pressures, with 53 per cent reducing non-essential spending, 33 per cent drawing down savings, 23 per cent reducing or skipping essential spending, and 12 per cent pausing retirement savings.

What is concerning is that while aspirations for retirement remain high, preparedness remains low. According to VSS (Vietnam Social Security), Việt Nam has around 14.4 million people of retirement age, yet only 3.3 million – around 23 per cent – receive a monthly pension or social insurance allowance. The majority continue to rely on personal savings, family support, or ongoing employment to meet their financial needs.

Our Retirement Reimagined study paints a similar picture. Fourteen per cent of respondents had made no retirement plans at all, while 26 per cent only started planning within two years of leaving full-time work. Unsurprisingly, only 24 per cent say they feel very confident about their retirement plans.

This suggests that the challenge is not a lack of awareness of the importance of retirement planning. Rather, many people struggle to translate that awareness into action. The longer planning is delayed, the more difficult and costly it becomes to build adequate retirement savings later in life.

Việt Nam News: What risks could arise if this gap is not addressed?

Randy Lianggara: If left unaddressed, the consequences can be significant.

At the individual level, people may enter retirement with insufficient savings, making them more vulnerable to healthcare costs, inflation, and unexpected life events. Instead of enjoying retirement as a period of freedom and fulfilment, many may face financial stress and uncertainty during what should be one of life's most rewarding stages.

The impact also extends to families. Adult children may increasingly need to provide financial support to ageing parents while simultaneously supporting their own children – creating pressure on what is often referred to as the "sandwich generation."

We are already seeing early signals of this shift. In our Retirement Reimagined study, 70 per cent of Vietnamese respondents expect to continue working beyond retirement age – primarily to support daily expenses and maintain financial security.

At a broader level, this trend can impact overall economic resilience. A population that enters retirement without adequate financial resources can place sustained pressure on households, healthcare systems, and broader social support mechanisms.

As Việt Nam's population continues to age, strengthening retirement readiness today will help build a more resilient economy tomorrow. The longer we wait to address the challenge, the more difficult and costly it may become for individuals, families, and society as a whole.

Vietnamese people need to be more financially prepared for their retirements, Randy said. — Photo courtesy of Sun Life

Việt Nam News: What role can the insurance industry play in addressing this challenge?

Randy Lianggara: The role of the industry needs to evolve. It is no longer enough to simply offer products. We need to help people understand why retirement planning matters – and, equally important, make it easier for them to take action.

This includes simplifying solutions, increasing flexibility, and integrating them into everyday financial decisions. It also means changing how we engage – making financial planning more accessible, relevant, and less intimidating.

Partnerships will be critical as well – particularly with employers and financial institutions – to expand access and encourage earlier participation in retirement planning.

Việt Nam News: What lessons can Việt Nam learn from other emerging markets – and how is Sun Life approaching this locally?

Randy Lianggara: Markets that have made meaningful progress generally share several common characteristics. They invest heavily in financial literacy, expand access through multiple distribution channels – particularly digital platforms – and encourage broader adoption of employer-sponsored retirement and health benefits.

Việt Nam has a tremendous opportunity to accelerate progress in these areas. The country has a relatively young workforce, increasing digital adoption, and growing awareness of financial wellbeing. These are strong foundations for building a more retirement-ready society.

At Sun Life Vietnam, we are focused on helping clients build financial confidence at every life stage. This includes enhancing our digital capabilities, simplifying access to financial solutions, and developing products that address evolving protection, health, wealth, and retirement needs.

Raising awareness is equally important. Helping people understand the value of starting early – even with small steps – can make a significant difference over time.

For example, we recently launched the Brighter Financial Futures programme, which provides online financial education for domestic workers in Việt Nam. We expect approximately 7,000 participants to complete the programme, equipping them with practical financial knowledge and skills that can support better long-term decision-making.

Later this year, we will launch the Lighter with Sun Life campaign, designed to support Việt Nam's growing "sandwich generation" – individuals balancing financial responsibilities for both children and ageing parents.

In parallel, we introduced a new pension insurance solution in May this year, enabling companies to provide meaningful retirement benefits to their employees. This not only helps individuals prepare more effectively for retirement but also supports employers in attracting, engaging, and retaining talent.

Ultimately, the retirement challenge is not about people living too long. It is about ensuring they can live those additional years with dignity, independence, and financial confidence. Building a retirement-ready society requires individuals, employers, financial institutions, and policymakers to work together. The sooner we act, the better positioned Việt Nam will be to turn longevity into an opportunity rather than a challenge, creating greater financial resilience for future generations.