Enough to cover expenses but difficult to bear unexpected costs
For many people, the income in old age is sometimes only pensions. This amount of money is used to maintain basic living needs. However, the post-retirement spending problem is a problem many people are facing.
When old, in addition to daily activities, there are also unpredictable expenses. For example, expenses arising from health care needs; or renovating accommodation, replacing equipment due to degradation after a long period of use, and especially taking care of children and grandchildren...
These expenses may exceed the monthly pension received, causing the budget expenditure to be disrupted. Without contingency savings, an unexpectedly large expense may cause retirees to borrow or depend on their children.
Ms. Hai Yen (62 years old, residing in Vung Tau ward) said that after retiring, she still maintains the habit of saving a portion of her pension each month. This helps her feel more secure when unexpected events occur. When she was working, Ms. Yen could take advantage of working extra, making advances to compensate for unexpected expenses, but when she only had a pension, she could not be proactive.
To maintain the reserve fund, Ms. Yen has separated a portion of her income from monthly living expenses. For example, with a pension of about 9 million VND, she sets aside 1 million VND for the reserve fund, and if there is a surplus at the end of the month, it will be supplemented according to conditions.
Prevention helps to be proactive and less dependent when there is only pension
Ms. Hai Yen said that the habit of setting up a provision has been implemented and maintained for many years, since she was just over 40 years old. This amount of money does not need to be too large, but needs to be implemented regularly, over time it will become a significant number. And especially only used in truly necessary cases.
I reserve this amount of money for unexpected emergencies, such as unexpected medical expenses; house repairs; support for children and grandchildren when urgent issues arise... If there is something to do, I do not have to ask my children for support or borrow money, but I am proactive in paying," Ms. Yen said.
Having a reserve also makes older people with the main income from pensions not bear the psychological burden of dependence on their children. This amount of money allows them to be more proactive in the face of life fluctuations and make their own decisions when there is something to spend.
Sharing the same view as Ms. Yen, some other cases also believe that ensuring contingency finances after retirement helps them be proactive and ensure the quality of life. When there is only a fixed income, the contingency fund becomes even more important, helping retirees cope with unexpected situations, not being affected or dependent on the support of relatives.
