Pension system in need of reform as cost pressure mounts

[snoop1130]

 

Thai society is aging fast. The percentage of the population aged 60 and above was projected to be 20.4 per cent in 2020 and 38.3 per cent in 2050, according to the UN ESCAP’s demographic changes report for Asia and the Pacific.

 

While Thailand has multiple social insurance and social assistance schemes to support the elderly, the old-age income provided by these schemes is inadequate for many groups of the population.

 

The different schemes are in theory targeted at different groups or sectors of the population. The Old Age Allowance (OAA) provides a basic pension for all Thai citizens aged 60 years or older with monthly handouts between 600-1,000 baht, depending on their age.

 

Full Story: https://www.thaipbsworld.com/pension-system-in-need-of-reform-as-cost-pressure-mounts/

 

-- Thai PBS 2023-08-31

 

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[hotchilli]

12 hours ago, snoop1130 said:

While Thailand has multiple social insurance and social assistance schemes to support the elderly, the old-age income provided by these schemes is inadequate for many groups of the population.

You can only get out what you pay in, if you don't pay into a pension scheme or only pay peanuts expect the same out..

Thailand needs a national pension scheme that is linked to the cost of living, and people have to expect to have to pay a percentage of income into it to get something out later.

[RichardColeman]

14 hours ago, snoop1130 said:

provides a basic pension for all Thai citizens aged 60 years or older with monthly handouts between 600-1,000 baht, depending on their age.

Jeez, that's even before some Thai males Brains mature and even before the moaning Frenchmen retire ! First thing they should do (and will do) is raise it to 67 :)

Edited September 1, 2023 by RichardColeman

[mfd101]

3 hours ago, hotchilli said:

You can only get out what you pay in, if you don't pay into a pension scheme or only pay peanuts expect the same out..

Thailand needs a national pension scheme that is linked to the cost of living, and people have to expect to have to pay a percentage of income into it to get something out later.

In other words, to provide a decent pension system you first need a decent & non-corrupt taxation system ...

 

GST is the obvious way to go, along with an enforceable income tax system.

[hotchilli]

16 minutes ago, mfd101 said:

GST is the obvious way to go, along with an enforceable income tax system.

A Win taxi friend was once bitching about taxation to me once... I asked how he paid tax as most of his income was cash based.. 

he said he pays 7% VAT every time he bought something..

there's you answer.

[freeworld]

3 minutes ago, hotchilli said:

A Win taxi friend was once bitching about taxation to me once... I asked how he paid tax as most of his income was cash based.. 

he said he pays 7% VAT every time he bought something..

there's you answer.

Did you ask about his gross income?

[mfd101]

40 minutes ago, hotchilli said:

A Win taxi friend was once bitching about taxation to me once... I asked how he paid tax as most of his income was cash based.. 

he said he pays 7% VAT every time he bought something..

there's you answer.

GST/VAT same thing.

 

The thing about GST/VAT is that it hits poor people greatly. Rich people don't even notice. The in-betweens in-between.

 

So you need to democratize/socialize your tax system with a progressive (in the technical sense) income tax to produce just outcomes.

 

The point is that you need both.

[digger70]

Get Everyone registered  with a Tax number ,and make them pay Tax.

Yes goo idea,  BUT

Impossible too may people earn Cash money and don't pay tax  That's the big problem  plus what gets siphoned off the top true corruption.

[bamnutsak]

The Prayut regime left a lot unexploded ordinance behind for the new "government" to deal with.

 

It will be ugly.

[hotchilli]

4 hours ago, hotchilli said:

A Win taxi friend was once bitching about taxation to me once... I asked how he paid tax as most of his income was cash based.. 

he said he pays 7% VAT every time he bought something..

there's you answer.

 

4 hours ago, freeworld said:

Did you ask about his gross income?

Yes, working outside of busy Big C department store he said he made 1,000 baht a day easily

[mfd101]

2 hours ago, digger70 said:

Get Everyone registered  with a Tax number ,and make them pay Tax.

Yes goo idea,  BUT

Impossible too may people earn Cash money and don't pay tax  That's the big problem  plus what gets siphoned off the top true corruption.

That's what VAT/GST is for: Noone can escape it because everyone is a consumer.