Golden oldies on march

Chularat Saengpassa,

Pongphon Sarnsamak

The Nation

This is the first of The Nation's series outlining the challenges and proposed solutions as the population rapidly ages and people will depend more on family and government support

BANGKOK: -- As the rapidly greying society will see the over-60 population nearly double from 8.56 million now to 17.8 million in 2030, the government will have to redouble its efforts through tax and non-tax measures to boost the capability of senior citizens and their families to cope with age-related demands and to minimise the cost burden on the treasury.

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"Thailand's elderly master plan for 2002-21 is now at the halfway point without any concrete achievements," Opas Pimolvichayakit, an expert on ageing at the Social Development and Human Security Ministry, said last week. "There are multiple measures that are not enforced, though projects to deal with different aspects must be implemented at the same time."

In 2010, Asia was home to 414 million elderly. In 2050, their numbers will jump to 1.2 billion on the population bulge of baby boomers from the early post-World War II period, the fall in fertility rates from the end of the 1960s and increasing life expectancy. Some countries in Asia, particularly Japan, where people aged over 65 will rise from 20 per cent of the population to 25.6 per cent in 2030, are prepared for the demographic change. Progress in this area is slow, however, in Thailand.

The master plan sets five objectives - make preparations on the health, income and housing fronts; enhance the elderly's capacity; expand safety and convenience for travelling and long-term care; streamline the operations of agencies; and raise public awareness

So far, the government has allowed judges, doctors and university lecturers to retire at 65 instead of 60.

Chulalongkorn University is evaluating the progress made in the past five years and its report will be submitted this month to the National Committee for the Elderly.

"There's a lot to be done, like raising the retirement age in the private sector. Tax measures are a must to promote this, in the same way that companies are encouraged to hire the disabled," he said.

Trirat Jarutach, an assistant professor in the department of housing at Chulalongkorn University's Faculty of Architecture and a member of the National Committee for the Elderly, said many more tax measures are necessary to help raise the elderly's income and their family's financial support. Children now get a Bt30,000 tax deduction for elderly parents living at home and a Bt15,000 deduction for elderly insurance premiums.

The elderly are just beginning to win monthly allowances and loans. Trirat suggested the government expand tax incentives to promote savings through retirement mutual funds. Tax benefits should be offered for renovation-related home loans and products made by the elderly. Transfer taxes should be waived on home purchases for elderly parents. Pension payments should be monthly rather than a lump sum. The more the income for the elderly, the less the burden for the government.

"We can't let things remain unchanged as from 2022, every year one million will join the ageing group. The government will go broke if it has to support them throughout the lifecycle and does not encourage them to stay independent," he said.

Besides tax measures, the government needs a big plan to provide greater convenience to the older generations.

Nart Fongsmut, director of the ageing-oriented Sawangkanives Housing project, said slopes and handrails on footpaths and public places are some of the necessary investment.

Healthy living means lower health expenditures, which will be a major portion of spending on the elderly by the government and the elderly themselves.

According to the United Nations Population Fund's Thailand office, in 2008, the government financed 23 per cent of total health expenditures of Bt367 billion, which accounted for 4.25 per cent of gross domestic product (GDP). Much of the expense is financed by the elderly or their families. In 2009, their personal care expenditures reached Bt122.3 billion or 29 per cent of the total and could rise to Bt210.4 billion or 31 per cent in 2015.

Elsewhere, Singapore's public health burden, 0.8 per cent of GDP as of 2005, is expected to rise as the share of persons aged 65 years and above is estimated to increase from the current 8.5 per cent to 19 per cent in 2030 and 27 per cent in 2050.

As the elderly have no earned income, government support is required.

Without new policies, all countries could face the same mountain of public debt that developed countries are facing now.

-- The Nation 2013-02-04

"Progress in this area is slow, however, in Thailand."

Read: Progress in any area is slow in Thailand.

"Japan is well prepared" - more like their whole system is creaking at the seems ready to collapse. The PM even said the elderly should just "hurry up and die"! - http://guardian.co.uk/world/2013/jan/22/elderly-hurry-up-die-japanese

I hope Thailand doesn't follow the "developed" / broke economies model of welfare from taxes. Much better and more sustainable to give tax breaks and other encouragement for population and families to save and make provisions for them selves.

Perhaps to avoid the mountain of debt prediction, the Government(s) need(s) to stop stealing revenues paid by unsuspecting citizens to be happily squandered away by irresponsibly politicians and their brainless policies. Raising taxes - not an option - and something I for one will not contribute to, as long as corruption rules Thailand.

If 90% of the elderly live in villages, and very rural villagers pay income tax, what is the point of a tax deduction? It seems that this policy only assists those that don't really need it.

Well this pretty well said to me nothing will be done to alleviate the problem. A university in Thailand leaves a lot to be desired in there studies.

"Chulalongkorn University is evaluating the progress made in the past five years and its report will be submitted this month to the National Committee for the Elderly."

I liked the part about the elderly being taken care of by family. Seems to me I have heard the opposite the elderly are taking care of the family while Daddy is away trying to earn a living.

"Japan is well prepared" - more like their whole system is creaking at the seems ready to collapse. The PM even said the elderly should just "hurry up and die"! - http://guardian.co.u...up-die-japanese

I hope Thailand doesn't follow the "developed" / broke economies model of welfare from taxes. Much better and more sustainable to give tax breaks and other encouragement for population and families to save and make provisions for them selves.

Of course, if your income is big enough to pay enough premiums to just do that.......

But remember, a country's developement is measured by the care it takes for it's elderly people.

But please, explain to me what the difference might be for tax breaks (less tax income) and welfare paid for by tax?

Also, if your income is very low, what use is a tax break?

What you want is only nice and comfy for richer and rich people, they can save, have tax breaks, the lot

"Japan is well prepared" - more like their whole system is creaking at the seems ready to collapse. The PM even said the elderly should just "hurry up and die"! - http://guardian.co.u...up-die-japanese

I hope Thailand doesn't follow the "developed" / broke economies model of welfare from taxes. Much better and more sustainable to give tax breaks and other encouragement for population and families to save and make provisions for them selves.

Of course, if your income is big enough to pay enough premiums to just do that.......

But remember, a country's developement is measured by the care it takes for it's elderly people.

But please, explain to me what the difference might be for tax breaks (less tax income) and welfare paid for by tax?

Also, if your income is very low, what use is a tax break?

What you want is only nice and comfy for richer and rich people, they can save, have tax breaks, the lot

She was poor but she was honest,

victim of a rich man's whim,

first he............. and then he.....

It's the same the whole world over,

it's the rich what get's the pleasure

and the poor that get the shame......

savings and thais;... when they get their salary , it is time to spend like there is no tomorrow... why save for an old day ?

most of those people never paid tax in their life, so why they expect a handout like in european countries, where half of your salary is stolen by the government each month... not for the pension of the working and active people, no... to give it away to those who don't or do not want to work (illegals get housing and allowance of about 30.000 baht each month ....)

savings and thais;... when they get their salary , it is time to spend like there is no tomorrow... why save for an old day ?

most of those people never paid tax in their life, so why they expect a handout like in european countries, where half of your salary is stolen by the government each month... not for the pension of the working and active people, no... to give it away to those who don't or do not want to work (illegals get housing and allowance of about 30.000 baht each month ....)

In the UK, the illegals can get much more than that.

savings and thais;... when they get their salary , it is time to spend like there is no tomorrow... why save for an old day ?

most of those people never paid tax in their life, so why they expect a handout like in european countries, where half of your salary is stolen by the government each month... not for the pension of the working and active people, no... to give it away to those who don't or do not want to work (illegals get housing and allowance of about 30.000 baht each month ....)

Because as Thailand GNP grows more Thai peole will be in salaried positions and pay taxes and contribut to the Parsee offices and the Social Security Offices. This money will become avaiable to beifit exisiting elderly from the new funds provided by those in work. When social programs begin it is always like that, it take many years to mature such projects though in the end everyone benefits because society is less blighted by poverty.

Edited February 5, 201313 yr by indyuk