Thailand raises retirement age to 65 for all sectors

[webfact]

Thailand’s Labour Ministry is set to extend the retirement age for both private and government sectors to 65 years, aligning it with countries like Singapore and Switzerland, announced Phiphat Ratchakitprakarn.

 

Phiphat stated that the decision to increase the retirement age is influenced by significant advancements in health and medical technology, which have improved life expectancy.

 

Additionally, the ministry plans to amend the Social Security Act to include approximately two million migrant workers from Myanmar, Laos, and Cambodia in the social security benefit scheme.

 

Self-employed individuals and workers in specific industries currently excluded from the Social Security system are also to be incorporated under the amended law. This category encompasses taxi drivers, delivery riders, agricultural workers, domestic workers, and street vendors.

There is also a proposal to raise fund contributions from both employers and employees by 2% each, with the government contributing an additional 2.5%. This would result in a total contribution increase of 6.25%.

 

Plans are in motion to adjust the wage ceiling and salary cap regularly to keep pace with currency value changes.

Phiphat revealed that the ministry is considering converting the Social Security Fund’s largest expense—currently variable medical costs, estimated at 60 billion baht annually, into a fixed cost. By transferring this financial responsibility to an insurance company, the Social Security Office (SSO) could manage floating costs more effectively and improve fund management.

 

The Social Security Fund aims for a return of at least 5% by 2025, an increase from the current 2.3 to 2.4% return in 2023. Achieving this target could extend the fund’s viability by an additional three to four years. Phiphat mentioned that the SSO’s international investments, particularly in the US and European markets, have generated returns of approximately 6 to 7%.

 

Next year, the SSO plans to invest around 65% of its fund in low-risk assets like government bonds and savings, while the remaining 35% will be allocated to higher-risk assets, including domestic and international stocks and real estate.

This marks a shift from the current investment ratio of 70/30. Phiphat emphasised the importance of proactive fund management to ensure sustainable growth amidst an ageing population and to secure the fund’s future financial stability.

 

Phiphat warned that failure to take these actions could result in the depletion of the Social Security Fund within the next 30 years, reported Bangkok Post.

 

by Mitch Connor
Image courtesy of Matichon

 

Source: The Thaiger 

-- 2024-10-26

 

 

 

[watchcat]

The  government is surely in problem, want to adjust the pension age to 65 for the measly pay of 600 baht/month. Just confess, the country is in deep trouble, and comparing the country with Singapore and Switzerland is a joke.

1 hour ago, webfact said:

the retirement age is influenced by significant advancements in health and medical technology, which have improved life expectancy.

 

Yes, and?  600baht/ month doesn't help.

Edited Saturday at 04:11 AM by watchcat

[KhunLA]

Moving the goal posts ... 5 yrs is a big jump.

 

A bit irrelevant, as the average life expectancy of someone born 65 yrs ago is only ~54 years old 

 

Born 60 yrs ago, and it's ~57 yrs old

[lordgrinz]

Yeah, I am sure the Thai's will enjoy being forced to work longer.

[mokwit]

People are living longer but the problems still start at the same age. Lifespan not healthspan.

[lordgrinz]

2 minutes ago, mokwit said:

People are living longer but the problems still start at the same age. Lifespan not healthspan.

 

Governments aren't worried about your health, just you money, and your compliance.

[transam]

Oh dear, there will be a lot of unrest over that.

Good ammunition for other Party's though.  

[watchcat]

Thailand raises retirement age to 65 for all sectors

 

That's great, people has to wait a few years more until they can get the measley pension of 600 baht/ month.

 

1 hour ago, webfact said:

Additionally, the ministry plans to amend the Social Security Act to include approximately two million migrant workers from Myanmar, Laos, and Cambodia in the social security benefit scheme.

 

And this dosn't help The tahi people, but it'll help them to build houses, because Thais are too lazy for manual labour.bankrupsy

Bankruptcy is near.

[Dakhar]

Taxes 

Taxes

Taxes 

[Classic Ray]

If they transfer the health system to an insurance company (with shareholders and profit expectations) what will that do for access to medical treatment? Will financial limits and access tests and personal contributions be changed to limit the insurance company’s risk?

 

These questions should be answered before this move is approved.

[LukKrueng]

52 minutes ago, watchcat said:

The  government is surely in problem, want to adjust the pension age to 65 for the measly pay of 600 baht/month. Just confess, the country is in deep trouble, and comparing the country with Singapore and Switzerland is a joke.

 

Yes, and?  600baht/ month doesn't help.

 

600 BAHT is old age payment, not retirement payment which comes from social security. 

 

42 minutes ago, KhunLA said:

Moving the goal posts ... 5 yrs is a big jump.

 

A bit irrelevant, as the average life expectancy of someone born 65 yrs ago is only ~54 years old 

 

Born 60 yrs ago, and it's ~57 yrs old

I know many Thai villagers that lived into their 80s

[Guderian]

2 hours ago, webfact said:

....extend the retirement age for both private and government sectors to 65 years, aligning it with countries like Singapore and Switzerland, announced Phiphat Ratchakitprakarn.

 

<sarcasm>

Of course, it makes perfect sense, since Thailand has so many similarities to Singapore and Switzerland, indeed they're almost indistinguishable!

</sarcasm>

[lordgrinz]

5 minutes ago, Classic Ray said:

If they transfer the health system to an insurance company (with shareholders and profit expectations) what will that do for access to medical treatment? Will financial limits and access tests and personal contributions be changed to limit the insurance company’s risk?

 

These questions should be answered before this move is approved.

 

If it is transferred to a private company, it will be a boondoggle, siphoned off to the Elite at the expense of the poor.

[Andrew65]

I always suspected that it's the stuff of fantasy when Thailand says that it has a 1%  unemployment number.

[lordgrinz]

2 minutes ago, LukKrueng said:

I know many Thai villagers that lived into their 80s

 

The average life expectancy in Thailand is about 76.

 

https://www.worldometers.info/demographics/life-expectancy/

[KhunLA]

7 minutes ago, LukKrueng said:

 

600 BAHT is old age payment, not retirement payment which comes from social security. 

 

I know many Thai villagers that lived into their 80s

I know more than a few, that didn't make to 30 yrs old.  Wife's brother died at 21 yrs old.  One of 8 siblings, so brings the average life expectancy of the family down a bit.

 

It's an average life expectancy.

 

Posted before (off topic), but my life expectancy, born 1954 (USA) is 67 I think, and coincidentally, I had a med oops 2 yrs ago, that potentially could have killed, without intervention, maybe.   Would have been right on time, sort of, as USA Soc Sec starts at 66 for folks born in 1954.

 

I know many family and peers, that didn't make 30-40-50 or 60 years old.  A few didn't even make 20 yrs old.

 

And then there is my cousin (Mother's side) who just passed yesterday, @ 84 yrs old, I think 👍

 

Gives me 14 more years.   Although, I thought I'd beat the odds on long retirement, and did it 24 yrs ago ... JIC 

Edited Saturday at 05:04 AM by KhunLA

[Cabradelmar]

Has any country ever lowered it's retirement age in the last decade? Underfunded social programs are increasingly the norm. Raising the age seems almost expected.

Edited Saturday at 05:05 AM by Cabradelmar

[chickenslegs]

3 minutes ago, lordgrinz said:

 

The average life expectancy in Thailand is about 76.

 

https://www.worldometers.info/demographics/life-expectancy/

That's pretty good if you consider the high number of youngsters killed in motorcycle accidents.

[john donson]

I almost poopoo my pants reading just the headers... imagine... retirement visa for expats raised to 65 years and up... that would create a serious s...storm

 

what do thai people expect, if they never contributed into the system ?  you have one dude that is the richest ...  in the world with about 2000 billion baht and the rest can listen to his predecessor that said something like, do not expect any handout from the government, do it yourself , with lots of photo ops... and his mummy that created the law if you insulted any of them, you get 15 years of free rent and food...

Edited Saturday at 05:13 AM by john donson

[Cabradelmar]

As it where... Thailand (in 2017) lowered the mandatory retirement age for certain groups of civil servants from 65 to 60. This change was largely a result of the government trying to create job opportunities for younger people.

[mokwit]

5 minutes ago, john donson said:

I almost <deleted> my pants reading just the headers... imagine... retirement visa for expats raised to 65 years and up... that would create a serious s...storm

It is currently 50 while the Thai retirement age is 60. It was lowered from 60 to 55 to 50 IMO because the Thai authorities realised US Govt pensions can start at 50.

[lordgrinz]

1 minute ago, Cabradelmar said:

As it where... Thailand (in 2017) lowered the mandatory retirement age for certain groups of civil servants from 65 to 60. This change was largely a result of the government trying to create job opportunities for younger people.

 

I believe my wife is in that group, but with the shortage of Nurses and especially highly educated Professors to teach them, they typically sign/contract for another 2-4 years.

[Old Croc]

The way I understand it, life expectancy calculated from a particular birth date includes all deaths from childhood, through idiot youth and later age illness.  To exceed the end figure is no great achievement in itself, other than you weren't one of the unlucky ones who dragged the average down.

Having reached that age, your life expectancy actually rises quite a bit higher because all the fools and unlucky soles are no longer part of the equation.

[thesetat2013]

1 hour ago, watchcat said:

The  government is surely in problem, want to adjust the pension age to 65 for the measly pay of 600 baht/month. Just confess, the country is in deep trouble, and comparing the country with Singapore and Switzerland is a joke.

 

Yes, and?  600baht/ month doesn't help.

They are following China's move to increase the retirement age. 

[Aussie999]

41 minutes ago, LukKrueng said:

 

600 BAHT is old age payment, not retirement payment which comes from social security. 

 

I know many Thai villagers that lived into their 80s

That's like saying many foreigners live past 100... but, of course, the majority don't. Retirement/pension ages are set hoping the majority die before the payment age, saving the government money.

[Aussie999]

40 minutes ago, Andrew65 said:

I always suspected that it's the stuff of fantasy when Thailand says that it has a 1%  unemployment number.

Considering you are considered unemployed if only working 1 day, even in your own paddy. Do not be confused with your home country.

[jippytum]

The trouble is  poor manual workers can't afford to retire. 

Many request to work on the many public holidays for the same reason. 

[Ralf001]

1 hour ago, lordgrinz said:

Yeah, I am sure the Thai's will enjoy being forced to work longer.

Who is forcing them ?

[Ben Zioner]

I don't see the point of aligning with Switzerland or Singapore, as there are no pensions to speak of to finance, and way over half the workers are in a underground economy.

 

Ridiculous.

[watchcat]

5 minutes ago, Ralf001 said:

Who is forcing them ?

 

Hunger, if you've ever felt that.