The impact of retirement on long-term care choices among older persons in Vietnam

Little is known about how individuals prefer a specific long-term care (LTC) model after retirement. We examined the causal effect of retirement on LTC preferences among Vietnamese older persons, using data from a nationally representative survey, namely Vietnam Aging Survey. Employing a regression discontinuity design to address the endogeneity of the retirement decision, we found that retirement significantly increased the likelihood of using home-based care services but had no significant impact on nursing home or day-care services. The effect on home-based care services was more pronounced in rural areas and among wealthier households. The underlying mechanisms include savings, willingness to pay, local social engagement, and improved health status.