Voluntary Defined Benefit Pension System Willingness to Participate the Case of Vietnam

29 Pages Posted: 15 Apr 2009 Last revised: 9 Apr 2011

See all articles by Paulette Castel

Paulette Castel

affiliation not provided to SSRN

Date Written: October 15, 2008

Abstract

This paper investigates the determinants of the participation of workers of the informal sector in a public voluntary pension scheme. Based on answers of the workers of the informal sector in Vietnam about their willingness to participate in an actuarially fair pension system, it forecast their potential participation to the voluntary pension scheme Vietna, is about to implement. This system includes many institutional features common to many pension system: entitlement to pension income is related to a minimum contributoru period of 20 years, and a minimum level of contribution related to the minimum wage is required for participation. The results show that these institutionle features by worsening the already low inclination of the workers to participate reduce significantly the capacity of the system to achieve high coverage rates in the long-term.

Keywords: voluntary pension system, willingness to participate, informal workers

JEL Classification: J26, C42, C25

Suggested Citation

Castel, Paulette, Voluntary Defined Benefit Pension System Willingness to Participate the Case of Vietnam (October 15, 2008). Available at SSRN: https://ssrn.com/abstract=1379607 or http://dx.doi.org/10.2139/ssrn.1379607

Paulette Castel (Contact Author)

affiliation not provided to SSRN ( email )

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