Thailand Plans New Pension Fund to Support Its Aging Population

[webfact]

Photographer:Brent Lewin/Bloomberg

 

By Randy Thanthong-Knight

 

Thailand aims to create a new pension program to support an aging population that will add about one million new retirees annually starting in 2023.

 

Prime Minister Prayuth Chan-Ocha wants to ensure that Thais can receive income upon retirement, government spokeswoman Rachada Dhnadirek said on Tuesday, after the cabinet approved in principle a new national pension fund. The program will be mandatory for all employees who aren’t participating in other pension plans, she said.

 

Thailand’s official retirement age is 60 years at government agencies and many companies. Under the new pension program, both employers and employees will contribute, with minimum inputs ranging from 3%-10% of salaries depending on employment tenure.

 

Full story: https://www.bloomberg.com/news/articles/2021-03-30/thailand-plans-new-pension-fund-to-support-its-aging-population

 

 

-- © Copyright Bloomberg 2021-03-31

 

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[ThailandRyan]

Hopefully it is not pilfered by greedy trough living insects in the government or those administering the funds.

[Swiss1960]

49 minutes ago, ThailandRyan said:

Hopefully it is not pilfered by greedy trough living insects in the government or those administering the funds.

Exactly my thoughts... another money/honey pot for the government... 

[colinneil]

3 hours ago, webfact said:

[Prime Minister Prayuth Chan-Ocha wants to ensure that Thais can receive income upon retirement, government 

If Prayuts crowd are planning such a scheme, there must surely be something in it for them.

When has Prayut ever shown concern for ordinary people? Never.

[starky]

So the government is doing nothing except implementing a super fund for people that should have been done years ago and the majority of the already elderly population and worse those who don't work for a company will get nothing.

   And of course the government will tax the <deleted> out of the superfunds. Add to that on a working wage of maybe 300 baht a day you could work from when you were 15 till 65 and it wouldn't be enough to see you through your retirement years.

   So for example if you manage to pull down 15000 baht a month and manage to fluke the top rate at 10% and you work all year every year for 50 years you still won't even make a million baht. 

  

[wombat]

2 hours ago, ThailandRyan said:

Hopefully it is not pilfered by greedy trough living insects in the government or those administering the funds.

Given other countries track record of pilfering pension funds i would guess that is a certainty 

[Artisi]

5 minutes ago, wombat said:

Given other countries track record of pilfering pension funds i would guess that is a certainty 

It won't be guess, it is will...... 

[mikebell]

How long before first reports of corruption at the new trough emerges?

[ThailandRyan]

4 minutes ago, mikebell said:

How long before first reports of corruption at the new trough emerges?

Tomorrow possibly.

[petermik]

Talking about it and actually doing anything are two different things...talk is cheap here when it concerns the benefit of the ordinary people.....

[Mops59]

Only employees. And what about the grandma watching the grandchildren, because mom is working double shift and dad having a good time with wife next wife and forget about his children.  Don't let them starve to death. Don't let them struggle in life. Give them a decent pension. Not THB 600 but enough to eat. Say THB 3.000 to start with.

[LazySlipper]

Despite all the criticism, I really hope it will come true and that it won't be pilfered. My wife is currently working for an international company and they have nothing for her. No social security, no pension plan and no salary increase in the last two years while the foreigners there keep getting 2-5k a month salary increases every year. If I am not there my wife will have nothing left in her old age. 

 

As far as I am concerned, better to try something like this and pray it works than stand by and do nothing. I am not a fan of the PM and this country's heads of state at all... but driving from Bangkok to Pattaya and Banchang has become a lot easier despite everyone saying that the motorway would never be finished because of corruption. 

 

I really hope this can work.

[trainman34014]

Another 500 Baht per month then; lucky devils will be able to go on a spending spree !

[FritsSikkink]

4 hours ago, colinneil said:

If Prayuts crowd are planning such a scheme, there must surely be something in it for them.

When has Prayut ever shown concern for ordinary people? Never.

He paid the rice farmers, which the "democratic" government failed to do.

[khunPer]

Thailand's Social Security includes a pension plan, and there are some (extremely) small government pensions for those that have very little.

 

Good to see some additional retirement savings plan coming up, so it's not only for those that have surplus to set aside in personal retirement funds. Hopefully the new plan will be as a fund with life long payouts generated from the gain, that has shown very successful in a number of other countries.

 

A major problem with a government's general retirement payouts is that the income tax increases – if retirement payouts are not from a fund, then it's the taxpayers that pays for it – sometimes I wonder if those complaining about too small government support for the elder, are the same as those complaining about the level of taxation...????

[RichardColeman]

8 hours ago, webfact said:

 Under the new pension program, both employers and employees will contribute, with minimum inputs ranging from 3%-10% of salaries depending on employment tenure.

I have 2 major concerns about that.

 

1. Current uncontributing pension Thais I doubt will suddenly want to lose up to 10% of their income.

2. Companies will start lowering wages to cover their input, creating double wage whammy 

[NoshowJones]

1 hour ago, khunPer said:

Thailand's Social Security includes a pension plan, and there are some (extremely) small government pensions for those that have very little.

 

Good to see some additional retirement savings plan coming up, so it's not only for those that have surplus to set aside in personal retirement funds. Hopefully the new plan will be as a fund with life long payouts generated from the gain, that has shown very successful in a number of other countries.

 

A major problem with a government's general retirement payouts is that the income tax increases – if retirement payouts are not from a fund, then it's the taxpayers that pays for it – sometimes I wonder if those complaining about too small government support for the elder, are the same as those complaining about the level of taxation...????

How much has the unelected "PM"s personal fortune increased since he and his soldiers took the country in 2014? Millions, trillions?

[Artisi]

1 hour ago, possum1931 said:

How much has the unelected "PM"s personal fortune increased since he and his soldiers took the country in 2014? Millions, trillions?

They're putting it away for their retirement plan so there is no need for them to apply for the government pension as they are thinking about and saving It for the poor people. 

[LukKrueng]

8 hours ago, colinneil said:

If Prayuts crowd are planning such a scheme, there must surely be something in it for them.

When has Prayut ever shown concern for ordinary people? Never.

He took out yingluk in 2014 which is good, as if she'd stay on long enough there would have been nothing left

[brain150]

More Socialism as expected !!!