Thailand must urgently reform its pension system as population ages, new study finds

[webfact]

 

By Cod Satrusayang

 

Thailand’s retirement pension system must quickly be reformed as the population ages and new challenges await the country, according to new study released on Friday by the International Labour Organization.

 

Thailand is one of the fastest aging countries in the world, ranked 17th globally when looking at the percentage of the population over 65, according to statistics provided by Population Reference Bureau.

 

The country has in place a pension system that has largely been untouched by the government for the better part of three decades, which according to the ILO, must now urgently be addressed.

 

Full story: https://www.thaienquirer.com/37427/thailand-must-urgently-reform-its-pension-system-as-population-ages-new-study-finds/

 

-- © Copyright Thai Enquirer 2022-02-11

 

- Aetna offers a range of visa-compliant plans that meet the minimum requirement of medical treatment, including COVID-19, up to THB 3m. For more information on all expat health insurance plans click here.

 

- Follow ASEAN NOW on LINE for breaking COVID-19 updates

[RandiRona]

1 minute ago, webfact said:

Thailand is one of the fastest aging countries in the world, ranked 17th globally when looking at the percentage of the population over 65

And what would you expect when Thailand is magnate for 65+ years retirees from west?? This is not singapore, HK or Malaysia which attracts young knowledge worker because of their Industry enablement policies and immigrant friendly laws. Local Youth anyway is either leaving or getting pimped out to Saudis.

[edwinchester]

Thai mother in law's state pension is 600 bht a month which is less than pitiful.

[tonray]

It's way too late for that....people over 65 have no way of making pension contributions now. Reform now for the twenty somethings today is all you can do.

[harada]

29 minutes ago, edwinchester said:

Thai mother in law's state pension is 600 bht a month which is less than pitiful.

How could they possibly afford to pay more when there’s pockets to line and subs to be purchased.

[Saanim]

8 minutes ago, harada said:

How could they possibly afford to pay more when there’s pockets to line and subs to be purchased.

Actually, there is something more than this paid by govt. I do not have the details in head but there are other contributions: on local travelling, monthly buying staple food, and something more getting now with Covid around.

 

And people who are working they will get pension from the social insurance (Pakaan Sankom) - monthly deducted from their salary and the same amount contributed by the employer.

 

From that paid also their accidents, sometimes not so small money, buying car for that, maternity leave 3 months., free health care covering (OK, it costs 30 Baht), etc... 

 

Perhaps, before commenting with stereotype bashing one should inform himself what's all here possible.  Sometimes it is more than in his home country, not to compare with other 3rd world countries... Ask first your wife, not always she like to disclose what is she getting...

 

[koratkarlos]

I can confirm the 600 THB monthly payment that my wife's parents get.  They get some help from the family and are quite resourceful.  But it is not fair, they deserve more as hard working honest people.  But what I love about Thailand is that they are happy.  They don't need all of the stuff which other people take for granted.  And I learn from their frugal joyous ways.

 

[jacko45k]

They got a pension system?

[vandeventer]

3 hours ago, edwinchester said:

Thai mother in law's state pension is 600 bht a month which is less than pitiful.

Yes, and when she turns 70 years old she will get 700 baht per month and if she is lucky enough to hit 80 years old she will get 800 baht a month as so on. But you have to remember a lot of Thai's don't pay any taxes.

[klauskunkel]

3 hours ago, webfact said:

The country has in place a pension system that has largely been untouched by the government for the better part of three decades, which according to the ILO, must now urgently be addressed.

Thailand better get ready for the government and its myriad of civil servants to start "touching" the pension system. Oh Lord.

[Tarteso]

3 hours ago, edwinchester said:

Thai mother in law's state pension is 600 bht a month which is less than pitiful.

Same here. They will increase from 600 to 650. Problem solved. ????

[Saanim]

4 minutes ago, vandeventer said:

But you have to remember a lot of Thai's don't pay any taxes.

Really, a lot of Thais. If you got through a village from house to house you will hardly find a house where somebody pays a tax. Even not the village headman. But you can see at every house a good car. 

 

The workers pension that is available after their old age (60) is possible also to withdraw one lump sum (instead of monthly payment)  when they want to invest in something.

   

And it has to be noted that govt employees, e.g. teachers, lower rang clerks, nurses, etc. will get quite a good pension (30 - 40k) . There are not a few in the cities.  Also the employees of companies half-owned by state.  Also the bank employees.  And the bonuses, thirteen salaries, etc. 

 

Just ask people from your friend's circle who are in these positions how much they get (if they disclose).

 

Why this forum does not give more info about these things instead of pasting here a baiting OP's that are always very welcome by many in order to bash and steam off their frustration from the life in a country where nothing goes right?    

[lopburi3]

3 hours ago, Saanim said:

Actually, there is something more than this paid by govt. I do not have the details in head but there are other contributions: on local travelling, monthly buying staple food, and something more getting now with Covid around.

Actually would like to see the details as AFAIK it is as said - 600 baht and 800 baht for those lucky enough to pass the 80 mark.  Travel?   Food?  Covid?  Medical care is for everyone - not old age. 

 

Few pay direct tax in a country where most are farmers is true - but all pay VAT and few would have an income of a level most countries would tax anyhow.  

[Dionigi]

As a farang who worked here and paid social security, I do not get a pension. I was not told, when my employment finished, that I could have claimed it all back. Too late when I found out, still the wife gets her 600B.

[fvw53]

1 hour ago, vandeventer said:

Yes, and when she turns 70 years old she will get 700 baht per month and if she is lucky enough to hit 80 years old she will get 800 baht a month as so on. But you have to remember a lot of Thai's don't pay any taxes.

Yes how to pay a pension to people who never contributed a satang to a pension fund / I paid in my EU home country for 40 years from age 25 to age 65.

[Saanim]

50 minutes ago, lopburi3 said:

but all pay VAT

Beside their TV, smart phone and motorcycle (also the gas) these people buying (if any) only at the local market.  Do the market people charge VAT?

[rwill]

4 hours ago, edwinchester said:

Thai mother in law's state pension is 600 bht a month which is less than pitiful.

The good news is it goes up 100 baht a month every ten years...

Pretty pitiful.  A few meals a month.

[alien365]

My In-laws receive 600 and 700 per month each. All this talk about others getting more is great, but the fact remains that many get pretty much nothing. There's no way they could survive if the wife and I disowned them or got taken out in a road accident or something. 

[hotchilli]

5 hours ago, webfact said:

The country has in place a pension system that has largely been untouched by the government for the better part of three decades, which according to the ILO, must now urgently be addressed.

I would say so... 30 years and no real adjustment?

[hotchilli]

5 hours ago, edwinchester said:

Thai mother in law's state pension is 600 bht a month which is less than pitiful.

Retired expats have to have 65,000 a month to survive.

I wonder how they worked out that figure.

[LukKrueng]

7 hours ago, RandiRona said:

And what would you expect when Thailand is magnate for 65+ years retirees from west?? This is not singapore, HK or Malaysia which attracts young knowledge worker because of their Industry enablement policies and immigrant friendly laws. Local Youth anyway is either leaving or getting pimped out to Saudis.

I'm pretty sure they're talking about Thai nationals so the number of foreign retirees has nothing to do with it...

[KhunBENQ]

7 hours ago, jacko45k said:

They got a pension system?

Would really love to know how many people get a significant pension.

Sure the civil servants (the uniform crowd).

But now tell them what the first step is:

work longer than to the age of 60!

[garyk]

7 hours ago, koratkarlos said:

I can confirm the 600 THB monthly payment that my wife's parents get.  They get some help from the family and are quite resourceful.  But it is not fair, they deserve more as hard working honest people.  But what I love about Thailand is that they are happy.  They don't need all of the stuff which other people take for granted.  And I learn from their frugal joyous ways.

 

It's like this in all third world countries. That is why the family unit is so tight. Born, live together until death basically. If not living together then the family is sending money monthly to support them. Mexico, South America all the same. 

It has taught me to be more frugal and appreciate what I have from a rich country and try to not judge others. 

[Virt]

Is it possible to have a reasonable pension system with the tax system they got?

[PETERTHEEATER]

7 hours ago, vandeventer said:

Yes, and when she turns 70 years old she will get 700 baht per month and if she is lucky enough to hit 80 years old she will get 800 baht a month as so on. But you have to remember a lot of Thai's don't pay any taxes.

And a majority don't pay any form of national insurance contributions on which to base a pension.

[kickstart]

6 hours ago, vandeventer said:

But you have to remember a lot of Thai's don't pay any taxes.

Soon it will be no such thing as a free lunch ,as you say those Thais who get their 6-800 baht/month have probably paid no tax in years ,if ever ,my wife has not paid any tax for  20 years plus, but now gets her 600 baht/month ,not a lot (but neither is the 175 GBP/week,uk pension after paying tax for 35 years ).

As has been said ,it will have to be done by the Thai Social security,somehow? a new law will have to be made, making it compulsory  to pay a SS stamp each month , even farmers, building site workers etc, from the age say 20  all going towards the pension .

How long before the pension age goes up in line with other countries to 65/66.

[BangkokReady]

10 hours ago, tonray said:

It's way too late for that....people over 65 have no way of making pension contributions now. Reform now for the twenty somethings today is all you can do.

Sure, but if they rejig it so that everyone who works pays into the state pension fund starting now, it gives them more money to look after people of retirement age now and in the future.

 

Obviously that's pretty much incompatible with Thai culture, as are most reforms that get spoken about.

[Adumbration]

That'll teach the Thai government for not letting covid rip the first time around.

[vandeventer]

9 hours ago, kickstart said:

Soon it will be no such thing as a free lunch ,as you say those Thais who get their 6-800 baht/month have probably paid no tax in years ,if ever ,my wife has not paid any tax for  20 years plus, but now gets her 600 baht/month ,not a lot (but neither is the 175 GBP/week,uk pension after paying tax for 35 years ).

As has been said ,it will have to be done by the Thai Social security,somehow? a new law will have to be made, making it compulsory  to pay a SS stamp each month , even farmers, building site workers etc, from the age say 20  all going towards the pension .

How long before the pension age goes up in line with other countries to 65/66.

Your right and there are Thai  people getting the the pension like my landlord who own 5 houses that he rents out  lined up getting his 600baht every month. Look I don't know if this is right or wrong but you would think the pension would have some kind of means testing.

[vandeventer]

18 hours ago, lopburi3 said:

Actually would like to see the details as AFAIK it is as said - 600 baht and 800 baht for those lucky enough to pass the 80 mark.  Travel?   Food?  Covid?  Medical care is for everyone - not old age. 

 

Few pay direct tax in a country where most are farmers is true - but all pay VAT and few would have an income of a level most countries would tax anyhow.  

I can tell you something about farmers when I was in Vietnam during the war. The Vietnamese farmers there hated the working Pro's because the Americans were paying big money for the girls. But when the Americans left and the cheap Russians came in. The farmers were happy again.