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Old-Age Pensions in a Lower Middle-Income Country: Economic or Psychological Effects?

This study investigates the effect of social pensions on the elderly in Vietnam toward a wide range of outcomes. The social pension level is relatively small, yet it has a sizeable and significant effect on older people. There is a significant effect of social pensions on income levels, enabling pensioners to feel they have better finances than previously. Although social pensions do not improve utilization of health care, they do help older people to reduce the number of self-reported health problems and, more importantly, to feel more satisfied with their life and other people.