Social security fund faces bankruptcy in a decade if action is not taken due to the Kingdom’s acute ageing crisis

[webfact]

After the December 24th groundbreaking election of representatives to the Social Security Fund board, the Minister of Labour Phiphat Ratchakitprakarn expressed disappointment with the low turnout. Only 5% of workers took part. The new board members, however, have a pressing issue. How to cope with rising losses from the fund as the working population ages?

Thai Social Security Fund on the Brink: Pro-Democracy win overshadowed by looming financial crisis. Thailand’s Social Security Fund, valued at ฿2.36 trillion, faces imminent bankruptcy within a decade if corrective action is not taken based on its net asset value. 

Thailand held groundbreaking elections on Christmas Eve for both employer and employee representatives in the administration of the country’s mammoth Social Security system and a fund valued at the end of 2022 at ฿2.36 trillion. There was a low turnout but satisfaction that it represented a step forward for democracy under a new law introduced in 2015. The good news stops there. At the same time, disturbing data shows the fund has begun to make a loss and is haemorrhaging money. So much so, that if corrective action is not taken it faces being depleted within a decade or so.

A Christmas Eve election with a low turnout however marked a defining moment for Thailand’s social security landscape. It comes as the country faces yet another crisis. This time linked with the national pension pot.

 

It is a problem similar to other countries worldwide but nevertheless quite acute in Thailand.

 

by James Morris and Son Nguyen

 

Full story: Thai Examiner.com 2024-01-03

 

- Cigna 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.

 

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[Mike Lister]

It may help to allow expat foreigners make payments into the fund, in exchange for medical privileges', an increased rate of even 10 times the Thai rate (430 month) would be excellent value for all parties. It's also worth noting that the SSc tax take is the lowest in Asia/Pacific, as a percentage of total tax take.......is it any wonder the fund is in trouble.

 

[JoePai]

8 minutes ago, Mike Lister said:

It may help to allow expat foreigners make payments into the fund, in exchange for medical privileges', an increased rate of even 10 times the Thai rate (430 month) would be excellent value for all parties.

 

When you look into what these so called 'medical privileges' offer it's not that great and the 50k you are suggesting can pay for a lot at a Government hospital

[Mike Lister]

8 minutes ago, JoePai said:

When you look into what these so called 'medical privileges' offer it's not that great and the 50k you are suggesting can pay for a lot at a Government hospital

The Social Security Fund helps pay for the Government Hospital system. I was suggesting that foreigners pay an increased monthly charge for access to that hospital system, I never imagined for one moment that might include private hospitals.

[FritsSikkink]

From our HR department yesterday, max of 750 thb per month will get higher:

 

"Phase 1, from 1 Jan. 2024 - 31 Dec. 2026, adjusted to be calculated from a wage ceiling of 17,500 THB, contributions not exceeding 875 THB.

Phase 2, from 1 Jan. 2027 - 31 Dec. 2029, adjusted to be calculated from a wage ceiling of 20,000 THB, contributions not exceeding 1,000 THB.

Phase 3, from 1 Jan. 2030 onwards, adjusted to be calculated from the wage ceiling of 23,000 THB, contribution not exceeding 1,150 THB."

[fondue zoo]

Birthrates are dropping in many places.

 

https://www.reddit.com/r/Damnthatsinteresting/comments/18wqutp/chinas_birth_rate_has_collapsed_completely_197m/?utm_source=share&utm_medium=web3x&utm_name=web3xcss&utm_term=1&utm_content=share_button

 

[Mike Lister]

Why so many confused idiots posting faces on this subject?

[hotchilli]

4 hours ago, webfact said:

At the same time, disturbing data shows the fund has begun to make a loss and is haemorrhaging money. So much so, that if corrective action is not taken it faces being depleted within a decade or so.

Raise the retirement age and reduce the pay-out... any bets?

[Ralf001]

Just now, hotchilli said:

Raise the retirement age and reduce the pay-out... any bets?

 

I think the cash draw is more the outlay spent for medical that the paltry amount each month for retiree's.

[Pouatchee]

4 hours ago, JoePai said:

When you look into what these so called 'medical privileges' offer it's not that great and the 50k you are suggesting can pay for a lot at a Government hospital

 

you are totally wrong. i have it and it paid for many surgeries and my medication. also, it does not matter if you have pre-existing conditions as all will be treated with same care. i am fortunate as my hospital has great doctors that are vthe same ones you will see in the high end private hospitals. my guess joepai is that you dont have it...

 

 

 imho the current fool sreta should begin investing in it instead of wasting billions on a hairbrained populist scheme that is the 10 000bht giveaway

[FritsSikkink]

1 hour ago, Mike Lister said:

Why so many confused idiots posting faces on this subject?

Probably drunk

[Mike Lister]

31 minutes ago, hotchilli said:

Raise the retirement age and reduce the pay-out... any bets?

Increase the charge (it's the lowest in Asia) and increase the payout (it's already been promised).

[Mike Lister]

13 minutes ago, Pouatchee said:

 

you are totally wrong. i have it and it paid for many surgeries and my medication. also, it does not matter if you have pre-existing conditions as all will be treated with same care. i am fortunate as my hospital has great doctors that are vthe same ones you will see in the high end private hospitals. my guess joepai is that you dont have it...

 

 

 imho the current fool sreta should begin investing in it instead of wasting billions on a hairbrained populist scheme that is the 10 000bht giveaway

 

4 hours ago, JoePai said:

When you look into what these so called 'medical privileges' offer it's not that great and the 50k you are suggesting can pay for a lot at a Government hospital

 

Both you guys might be dangerous if you learned to read properly!  My comment was in favor of giving foreigners access to government health care, as was JoePai's

[Muhendis]

The country could adopt something like the UK national insurance system. 

The ageing population and reducing birth rate may make that a bit tricky though.

A reducing birth rate isn't so bad because, although the number of contributors to the system becomes fewer, so does the number of recipients.

[CHdiver]

Why not put the tax money for alcohol into the social security fund ......  oh wait 

[The Cyclist]

47 minutes ago, Muhendis said:

The country could adopt something like the UK national insurance system. 

 

Why ?
 

Its a ( deleted ) disaster.

[Pouatchee]

2 hours ago, Mike Lister said:

 

 

Both you guys might be dangerous if you learned to read properly!  My comment was in favor of giving foreigners access to government health care, as was JoePai's

 

well, foreigners can get it. get a job that offers it as the health care insurance. no way will they offer this to anyone on a retirement visa, or a marriage visa. they would never break even they would just keep going under but faster

[fondue zoo]

 

Wait, is Mike Lister the forums Quant?

 

_{- I only know that term from the movie The Big Short}

_{- Also, I just tried rava fries, Indian seasoning, delish!} 

[Mike Lister]

4 minutes ago, fondue zoo said:

 

Wait, is Mike Lister the forums Quant?

 

_{- I only know that term from the movie The Big Short}

_{- Also, I just tried rava fries, Indian seasoning, delish!} 

No, I'm Methodist

[brianthainess]

There is one USD multibillionaire that could help, but he'd rather take than give.

[fondue zoo]

15 hours ago, brianthainess said:

There is one USD multibillionaire that could help, but he'd rather take than give.

 

Bruce Wayne?

[fondue zoo]

On 1/3/2024 at 11:35 AM, webfact said:

Minister of Labour Phiphat Ratchakitprakarn

 

Isn't this guy a Tourism mastermind?

[jacko45k]

19 hours ago, hotchilli said:

Raise the retirement age and reduce the pay-out... any bets?

Re-instate domestic alcohol taxes!

[brianthainess]

4 minutes ago, fondue zoo said:

 

Bruce Wayne?

Not unless he is Thai now. 

[Photoguy21]

Stop wasting money on high speed trains that no one wants would be a reasonable start.