Covid forces half a million to quit national pension fund

[webfact]

Covid forces half a million to quit national pension fund

By The Nation

 

 

Membership of the National Savings Fund (NSF) has dropped by 500,000 to 2.4 million during the Covid-19 crisis, as people have been unable to maintain their annual contributions, said its secretary-general Jaruluk Ruangsuwan.

 

.The NSF is designed to take care of workers who are not protected by the Social Security fund.

 

This year, encouraging workers in the informal sector to join the fund to save for retirement had been extremely difficult, she said.

 

“On a positive note, about 30 per cent of members increased their contributions out of the targeted 50 per cent, she added.

 

Combined savings of the 2.4 million current members amount to Bt8 billion. They save a combined Bt100 million per month at an annual rate of 1.3 per cent, compared to the 0.5 per cent on bank savings.

 

The NSF on Tuesday signed an agreement with the Office of SMEs Promotion (OSMEP) to encourage 79,000 small-business workers not covered by the Social Security fund to join the pension fund.

 

The first 3,000 new members who contribute the maximum Bt13,200 a year would be handed the chance to win Bt1 million in a lottery, she said.

The NSF’s minimum contribution is Bt50 per year. 

 

For those aged 15-30, the government tops up their contributions by 50 per cent to a maximum Bt600 per year. Those aged over 30-50 receive 80 per cent up to a maximum Bt960, while people aged 50-60 get 100 per cent up to a maximum Bt1,200 a year.

 

Members of the fund include farmers, taxi drivers, the self-employed, small-shop owners and professionals.

 

Source: https://www.nationthailand.com/business/30394195

 

-- © Copyright The Nation Thailand 2020-09-09

 

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[geriatrickid]

IMO, one of the better social benefit programs available in Thailand.

[Matzzon]

1 hour ago, geriatrickid said:

IMO, one of the better social benefit programs available in Thailand.

Yes, it surely is. However, I find it hard to believe the reason they give for 500k members leaving and can not save. As it is so easy they blame it on Covid-19. I just calculated that with their number, it would mean that 500k person stopped because they can not save 41 baht and 66 satang per person per month. That´s just a big lie!

[tomazbodner]

2 hours ago, webfact said:

The first 3,000 new members who contribute the maximum Bt13,200 a year would be handed the chance to win Bt1 million in a lottery, she said.

There's a Thai way for everything...

5 minutes ago, Matzzon said:

I just calculated that with their number, it would mean that 500k person stopped because they can not save 41 baht and 66 satang per person per month. That´s just a big lie!

Actually minimum contribution is 50 baht per YEAR:

2 hours ago, webfact said:

The NSF’s minimum contribution is Bt50 per year. 

There it goes, for people who can't save 4 baht per month...

[brain150]

1.3% per year is just simple theft !

 

[Bender Rodriguez]

37 minutes ago, brain150 said:

1.3% per year is just simple theft !

 

and most banks steal 15 percent on top of that ... well for the good old government

 

do you know any banks right now giving more in thailand ?

[BritManToo]

10 minutes ago, Bender Rodriguez said:

and most banks steal 15 percent on top of that ... well for the good old government

do you know any banks right now giving more in thailand ?

TMB gives me 1.5% if I make more than 5 transactions on my account every month.

..... and free accident insurance if my balance doesn't fall below 10kbht.

Edited September 9, 2020 by BritManToo

[overherebc]

19 minutes ago, Bender Rodriguez said:

and most banks steal 15 percent on top of that ... well for the good old government

 

do you know any banks right now giving more in thailand ?

Don't know a bank anywhere that 'gives' anything.

[hotchilli]

6 hours ago, webfact said:

This year, encouraging workers in the informal sector to join the fund to save for retirement had been extremely difficult, she said.

I wonder how many Thais are not saving anything for a pension later in life?

[BritManToo]

39 minutes ago, hotchilli said:

I wonder how many Thais are not saving anything for a pension later in life?

The way things are going, 'later in life' ain't gonna happen, except for the few of us already here.

[Airalee]

5 hours ago, tomazbodner said:

Actually minimum contribution is 50 baht per YEAR:

Here in the Government Public Relations Department release it says 50 baht per month.

 

“Members of the fund must be 15 to 60 years old. Each member is required to contribute at least 50 baht a month to the fund but not more than 13,200 baht a year. The Government will contribute its part to the fund, as well. When members reach 60, they will receive a monthly pension, based on their savings and age.”
 

https://thailand.prd.go.th/ewt_news.php?nid=2076&filename=index
 

Seeing that it was started in May 2011 and as of the time of the above release 25 million people were eligible one wonders why under 3 million ever signed up.  And how much of a safety net would be provided (yes, I know that it depends on each individuals contributions) being that those 3 million had only been able to save an average of ฿2,666?  
 

Of course, some members had been with the fund since the beginning and their minimum and if they saved the minimum amount for the (let’s say 110 months) maximum time, they would still have less than ฿8,000 (including interest) saved.  After 45 years (the maximum time allowed) perhaps they’d have maybe ฿50,000 saved?  I wonder how many saved the maximum ฿13,200 per year and even if they did, how much of a safety net would that provide in the inflation adjusted future.

 

 

[tomazbodner]

1 hour ago, Airalee said:

Here in the Government Public Relations Department release it says 50 baht per month.

 

“Members of the fund must be 15 to 60 years old. Each member is required to contribute at least 50 baht a month to the fund but not more than 13,200 baht a year. The Government will contribute its part to the fund, as well. When members reach 60, they will receive a monthly pension, based on their savings and age.”
 

https://thailand.prd.go.th/ewt_news.php?nid=2076&filename=index
 

Seeing that it was started in May 2011 and as of the time of the above release 25 million people were eligible one wonders why under 3 million ever signed up.  And how much of a safety net would be provided (yes, I know that it depends on each individuals contributions) being that those 3 million had only been able to save an average of ฿2,666?  
 

Of course, some members had been with the fund since the beginning and their minimum and if they saved the minimum amount for the (let’s say 110 months) maximum time, they would still have less than ฿8,000 (including interest) saved.  After 45 years (the maximum time allowed) perhaps they’d have maybe ฿50,000 saved?  I wonder how many saved the maximum ฿13,200 per year and even if they did, how much of a safety net would that provide in the inflation adjusted future.

 

 

Apologies. Someone needs to send a pair of glasses to The Nation reporter...

 

As for the rest... most people in this country do not plan for the future. A drink today is worth more than a plate of rice 20 years later. Or maybe just counting on their offspring supporting them when they're old?

[Airalee]

3 minutes ago, tomazbodner said:

As for the rest... most people in this country do not plan for the future. A drink today is worth more than a plate of rice 20 years later. Or maybe just counting on their offspring supporting them when they're old?

So true. Instant gratification seems to have caught on here in a tremendous manner.  I wonder if today’s generation will be able to count on any help from offspring.  I say this as when I tried online dating a few years ago, the number of women in their 30s and 40s without children (but still hoping to meet the right guy to give them a child) was astounding.

[rumak]

11 minutes ago, Airalee said:

So true. Instant gratification seems to have caught on here in a tremendous manner.  I wonder if today’s generation will be able to count on any help from offspring.  I say this as when I tried online dating a few years ago, the number of women in their 30s and 40s without children (but still hoping to meet the right guy to give them a child) was astounding.

Most of the women i was meeting......even instant gratification was too long for me .

But,  being the man that i am,  i stuck it in out.

[VBF]

2 hours ago, rumak said:

But,  being the man that i am,  i stuck it in out.

And shook it all about? ????

[rumak]

2 minutes ago, VBF said:

2 hours ago, rumak said:

But,  being the man that i am,  i stuck it in out.

And shook it all about? ????

and a little bit of   twist and shout       oh yeahhhhh