Late last year, when their cash savings were VND2 billion (US$77,000), Manh Tin, 42, had a discussion with his wife about selling their apartment in Hanoi's Yen Nghia Ward and buying another one downtown.

The new home would cut two hours from their daily commute and offer better educational opportunities for their children. But his wife, Pham Phuc, opposed the idea. For her, the savings accumulated after nearly 15 years of marriage were not meant for a home upgrade.

She and Tin are civil servants with a combined monthly income of under VND40 million. Back home, both sets of parents are nearly 70 and without any pension. "We have elderly parents above us, young children below us, and not a single dime saved for our own retirement," she laments.

The discussion about switching homes came to a halt.

The story of Tin’s family reflects the reality of millions in Vietnam's eloquently named "sandwich" generation - people who are trapped between the responsibilities of raising children and supporting aging parents.

Vietnam has nearly 27 million people aged 40-59, according to the General Statistics Office. Financial preparations remain limited in a rapidly aging population, especially among informal workers, 55% of whom do not have social insurance and only 3% buy it.

In response to this, the Ministry of Health has recently proposed guidelines to help citizens aged 40 and above prepare for old age.

People in this age group will gain access to educational materials and training on healthy lifestyles, financial planning, and employment options.

Seniors exercise in an apartment complex in Dong Ngac Ward, Hanoi, in July, 2026. Photo by Phan Duong

According to Prof. Dr. Giang Thanh Long of the National Economics University, Vietnam's "golden demographics" window is expected to end by 2038, while the "aging population" threshold will arrive in 2034.

At age 40, people typically have stable employment, relatively steady income, and high earnings potential. This is also when your health is still good enough to make lifestyle changes, prevent illness, and prepare for the future.

"The age of 40 is a symbolic milestone where resources converge for planning ahead, but realistically, the sooner you start preparing, the better", Long says.

Nonetheless, a wide gap remains between awareness and action.

While data from Manulife Asia Care 2026 shows that 89% of respondents view financial independence as the greatest asset to leave their children, only 27% have started investing to generate cash flow, 40% exercise regularly, and 31% get regular health screenings.

In fact, 40 is the age when people reach peak income and ability, but is also when their cash flow is split between children, debts, and elderly parents. Preparing for their own retirement is often pushed to the bottom of the priority list.

Immediate bills take priority

Earlier this year, Diem Le, 38, and her husband from Hanoi's Cau Dien Ward finished paying off their mortgage. Earning VND45 million a month, after living costs and supporting family, they had planned to save VND5-10 million a month.

By mid-year, however, over VND50 million of their savings evaporated as their two children were hospitalized one after the other and her father-in-law needed treatment for a stomach ailment in their hometown. "We thought we had adequate savings, but a single unexpected event leaves us short", Le says.

Tet holiday bonuses are earmarked for expenses. Last year’s went toward mortgage payments, this year’s toward renovating their home in the countryside, and next year’s will fund a car for family visits.

The mindset of exhausting all savings for the previous and next generations is a distinct cultural trait in Asia.

Prof. Dr. Peiyi Lu, director of the master of gerontology program at the University of Hong Kong, says providing for children and supporting parents are tied directly to filial piety. "It is a painful tug-of-war when family resources are limited".

Her research indicates that middle-aged financial exhaustion sets the stage for insecure retirement.

Lacking emergency funds forces many to continue working late in life, accelerating the risk of chronic illness.

Sun Life’s report on retirement in Asia released in early 2026 across six markets, including Vietnam, says 69% of respondents expect to continue working past retirement age. Nearly two-thirds admit to having insufficient retirement funds.

Furthermore, 36% of the sandwich generation accept a lower quality of life for themselves to redirect resources to their families.

Starting with just $0.38 a day

Nguyen Thoa, a social security expert, says many people mistakenly believe they need a fortune before thinking about retirement. She says the strength of a retirement fund lies in gradual accumulation.

Nguyen Thi Lien, 50, of Nam Dinh Province works as a construction worker, earning about VND6-7 million per month. As the primary breadwinner supporting her visually impaired husband and a daughter in university, she has little leftover money to put in a bank.

When advised on a voluntary social insurance plan of around VND264,000 per month, she decided to enroll, saying "Saving VND10,000 ($0.38) a day is something I can manage".

Having contributed for five years, she expects to get a monthly pension of around VND1 million and a medical insurance card at 60.

Nguyen Thu Giang, a financial advisor at FIDT, considers retirement a tougher financial goal than buying a home or raising children, because it spans decades while the capacity to work declines.

For families like Le's, Giang advises building a six-month emergency reserve and purchasing basic insurance policies first.

For families with VND2 billion like Tin’s, she advises holding on rather than spending it on a downtown apartment. "If resources are insufficient to meet all goals, those preparing for retirement should prioritize their own security first, rather than overspending on real estate or leaving assets to their children".

An elderly woman works at a rural market in Ha Long Ward, Thanh Hoa Province, in August 2026. Photo by Phan Duong

Moreover, personal effort has to be paired with support from policies. Lu says retirement is not limited to just money, and requires an ecosystem of financial stability, good health, and strong social networks.

Therefore, public policies and social programs play a vital role, she says. "Initiatives that boost financial literacy and long-term planning help citizens make informed decisions early, reducing the burden of making ends meet in old age".

Long emphasizes the need for conducive social security policies to persuade more people into coverage.

For low-income workers who are focused on daily survival, support mechanisms are needed to help them maintain social insurance contributions and not give up halfway, he says. "If we fail to leverage the 'golden' economy when young and healthy, we cannot build the 'silver' economy in old age".

The consequences of missing the preparation phase are painfully evident for those without pensions.

Nguyen Thi Hon, 75, of Thanh Hoa Province lives by herself after her daughter married and moved away. The former farmer and babysitter now gets her primary income from selling vegetables grown in her backyard.

This year in July, she received her first social allowance payment of VND500,000, meant for senior citizens without pensions.

She says the payment is enough to buy around 10 kilograms of rice, with the remainder kept for medicine. "With this allowance, during times when my joint pain keeps me from selling in the market, I don't have to rely on my child."