Pension fund for 30 million Thais

[Lite Beer]

NATIONAL SAVINGS
Pension fund for 30 million Thais
The Sunday Nation

BANGKOK: -- THE government will set up a national savings fund for retired workers in the informal sector or others who have no pension scheme, deputy government spokesperson Maj-General Sansern Kaewkamnerd said yesterday.

The fund will be launched on August 18 with the aim of covering 30 million people and ensuring that some of these people would receive a maximum monthly pension which is partly contributed by the state of Bt7,000 from the retirement age of 60 until death.

Sansern said the younger the age of a person joining the fund the better. He said if someone joins the retirement fund at the age of 20, by depositing Bt1,000 per month they would be entitled to receive a sum of Bt7,000 per month after retirement for the rest of their life. Giving another example, he said those depositing Bt1,000 monthly beginning at the age of 40 will receive Bt2,646 per month after retirement.

People aged 15 to 60, who are not covered by any public or private pension scheme, are eligible to apply. Part of the fund will be supported by the state, varying with the age of the member applying to join the retirement saving scheme. Those joining at the age of 55 can remain in the scheme until the age of 65.

Source: http://www.nationmultimedia.com/national/Pension-fund-for-30-million-Thais-30264737.html

-- The Nation 2015-07-19

[jerojero]

Will PM will ensure it's not a unfunded populist program that costs lots tax dollars because that was the big bad sin of the previous government. And where is the money to pay for this global plan for 30 million people? Drought, and farm subsidies, submarines, railways to China, more appointed Generals of course, increasing minimum wage .. ..and how much tax dollars left?

Edited July 18, 2015 by jerojero

[ezzra]

Meanwhile, I know of current pensioners how gets, a baht 1,000 a month and some nothing at all,

what about those retired people that are all out there with means of supporting themselves?

[MaiChai]

Thought pensioners got 600 baht a month? That's what the wife's grandparents get.

[ramrod711]

Thought pensioners got 600 baht a month? That's what the wife's grandparents get.

I believe that money is not federal, it comes out of the annual funds that are allocated to each village, town or city. I also believe that may be the best way to do it, because the local officials will be held responsible by the friends and family of the retiree. Money that goes to Bangkok to be redistributed has a strange way of being unaccounted for.

[trogers]

Do it like Singapore - compulsory contributions from both employers and employees, and none from the state's coffers.

[jaywalker]

Do it like Singapore - compulsory contributions from both employers and employees, and none from the state's coffers.

Been there done that in the USA with Social Security & Medicare.

Yes my 82 year old Aunt gets both....She should as she paid into it for 40+ years.

Only problem is Congress keeps raiding the funds, "borrowing" it.

Can you imagine how much Thai politicians would "borrow"?

[harada]

Thought pensioners got 600 baht a month? That's what the wife's grandparents get.

The amount goes up with age, my mother in law is 90 and I believe that she gets 800 baht a month, another old woman in the village is 90 and gets 1000.

[stoneyboy]

Thought pensioners got 600 baht a month? That's what the wife's grandparents get.

The amount goes up with age, my mother in law is 90 and I believe that she gets 800 baht a month, another old woman in the village is 90 and gets 1000.

So the moral of the story is if you live until your 250 years old one may get a liveable monthly amount rather than the current pittance.

[jadee]

Will PM will ensure it's not a unfunded populist program that costs lots tax dollars because that was the big bad sin of the previous government. And where is the money to pay for this global plan for 30 million people? Drought, and farm subsidies, submarines, railways to China, more appointed Generals of course, increasing minimum wage .. ..and how much tax dollars left?

The plan seems to be that Thais will pay into the fund throughout their lives and receive an amount in retirement based on contributions.

[ikke]

Two things the Junta said to stage the coup where end to corruption, and no populist governing anymore , amazing to see how they fail ....

[Lite Beer]

PM to launch National Savings Fund on 18 Aug

BANGKOK, 19 July 2015 (NNT) - Prime Minister Prayut Chan-o-cha is scheduled to launch the government’s National Savings Fund on 18 August 2015. The fund is aimed at financially assisting 30 million Thais who are not in the pension system.

Deputy Government Spokesman Sansern Kaeokamnerd said the National Savings Fund system was almost ready for release. The PM would accept the first application for fund membership by himself on 18 August 2015, said the deputy spokesman.

The National Savings Fund is the government’s policy to help self-employed workers, those outside of the government’s pension system or members of private funds. The fund will help them save for retirement with contributions from the government. When they are 60 years old, the fund will give them a monthly retirement payment until death.

People who are interested to apply for the fund may apply at Krungthai Bank, Government Savings Bank, and Bank for Agriculture and Agricultural Cooperatives nationwide using only their citizen ID card.

-- NNT 2015-07-19

[SOUTHERNSTAR]

If everyone participate in this scheme and the government have to contribute B 500 per person it will cost B 15 bn per year. This is at present value and look at what the people will get, B 4500 in 30 to 40 years time will buy a 10 kg rice.

When the fund gets nice and fat they will do the same as what they did with SS and "borrow" money from it. The B 80 bn they took from the SS because they couldn't borrow the money on the open marketat the same interest rate are now earning less money for the SS. For us on SS this is unacceptable, we are the only ones contributing to our own health care but gets the worst benefits and then they raid our fund to finance salary increases for lazy civil servants.

[Whyamiandwhatamidoinghere]

Wow! 7,000 should keep the cupboards stock with Lao khao...

[trogers]

Do it like Singapore - compulsory contributions from both employers and employees, and none from the state's coffers.

Been there done that in the USA with Social Security & Medicare.

Yes my 82 year old Aunt gets both....She should as she paid into it for 40+ years.

Only problem is Congress keeps raiding the funds, "borrowing" it.

Can you imagine how much Thai politicians would "borrow"?

Is this Congress not elected by the same people that are being robbed by them? Why blame an act of democracy?

[wabothai]

Great idea. Make it work so no one can put his/her nose in the trough.

[timendres]

Do it like Singapore - compulsory contributions from both employers and employees, and none from the state's coffers.

Been there done that in the USA with Social Security & Medicare.

Yes my 82 year old Aunt gets both....She should as she paid into it for 40+ years.

Only problem is Congress keeps raiding the funds, "borrowing" it.

Can you imagine how much Thai politicians would "borrow"?

Compulsory contributions into a privately held account that can only be withdrawn from at retirement, or inherited upon death, is the only valid program.

Everything else is socialist government theft.

[Srikcir]

If this fund is an off-budget program as self supporting directly from nonemployee contributions, then for it to generate future distributions until death, the contributions must be INVESTED.

There will also be an investment load or administrative cost over the entire program life of a participant that will offset the earnings and distributions of the fund.

In the face of low yielding Thai bonds and bank CDs, investments will need to be made in stock markets. That means financial RISK.

Given the current sluggish to stagnant Thai economy, low yield treasury bonds and future possible political "disturbances," the government will need to make foreign investments where it will have no control over those economies. That means MORE financial RISK.

If the government doesn't control the fund carefully, the self-funded pension program could require a bailout and cause a massive economic burden on the nation. The proposed pension fund is not something to charge into without careful considerations and potential avenues for corruption.

In view of the economic performance of the current regime, this is not the right time to implement the fund.

But creating such a fund might create great political coinage towards the next elections.

[sfokevin]

So would being the wife of a Farrang be considered working in the "Informal Sector"?

[Nuddy]

I wonder if this may be a good thing for me and my Thai Wife

She is 52 and has not worked in a outside job for the past ten years we have been together.

I thought maybe its a good plan to pay 1000 thb per month to arrange a small income for her.

She is not capable as some Thai wives are, of running a business so this may be the answer.

Hopefully she does not need to be currently employed when applying for the pension.

As usual the news articles in Thailand always create more questions than they answer.

I have put 18th of August in my diary and will encourage my wife to approach the Banks mentioned to see what she can find out?

Can someone tell me the Thai word for Pension as I do not trust google to get it right.

Regards.

[mango66]

It's big step forward for Thailand to get a social system;

we know some of your Countries like A... like only the a kapitalist system,

everything for the reach and criminals on burse and banks,

nothing for the labour and poors !!

Hope Gen will be remember for this step into some social system for ever !

Good luck PM;

And to everyone who just cam critisice !

How is the SS in your native country ?

did it start immediately with 80% of selary from first month ??

[mango66]

I wonder if this may be a good thing for me and my Thai Wife

She is 52 and has not worked in a outside job for the past ten years we have been together.

I thought maybe its a good plan to pay 1000 thb per month to arrange a small income for her.

She is not capable as some Thai wives are, of running a business so this may be the answer.

Hopefully she does not need to be currently employed when applying for the pension.

As usual the news articles in Thailand always create more questions than they answer.

I have put 18th of August in my diary and will encourage my wife to approach the Banks mentioned to see what she can find out?

Can someone tell me the Thai word for Pension as I do not trust google to get it right.

Regards.

I trust PM Prayouth !

if she now 50, she will pay in for 10 years - maybee till 55 as sure Thialand will also adapt retirement age,

and when she get retired, she will get proportional what she paid in !

and if she would live for 100 of age,

she would geta small- but would get some or all her life !!

not to be always a hig burden for their childrens like current SS !!

my wife pay currently trough her work,

but I will consider if she also pay in this fund too;

[jackanapes]

I suppose something is better than nothing 7,000baht a month on retirement is exceedingly small not nearly enough to live on I think the government could do a lot better than this .

[djjamie]

This sounds like similar superannuation systems around the word, but they are usually compulsory contributions of about 9% from the employer I think and then one can make contributions out of their own salary above and beyond that at a reduced tax rate. The money is managed / invested by the government and returned to the pensioner upon retirement thus costing the tax payer nothing.

The government are certainly catching up with the rest of the world with this initiative and it is good to see the elderly that have contributed so much to society will be given a safety net to have a respectful and dignified retirement. This will be especially appreciated by the very poor who all governments have seemed to try to help but have failed before.

Populist? When one believes a scheme being implemented to ensure a quality of life for its senior citizens is populist then that's where I question their moral standing. Shame, shame shame.

[mango66]

If this fund is an off-budget program as self supporting directly from nonemployee contributions, then for it to generate future distributions until death, the contributions must be INVESTED.

There will also be an investment load or administrative cost over the entire program life of a participant that will offset the earnings and distributions of the fund.

In the face of low yielding Thai bonds and bank CDs, investments will need to be made in stock markets. That means financial RISK.

Given the current sluggish to stagnant Thai economy, low yield treasury bonds and future possible political "disturbances," the government will need to make foreign investments where it will have no control over those economies. That means MORE financial RISK.

If the government doesn't control the fund carefully, the self-funded pension program could require a bailout and cause a massive economic burden on the nation. The proposed pension fund is not something to charge into without careful considerations and potential avenues for corruption.

In view of the economic performance of the current regime, this is not the right time to implement the fund.

But creating such a fund might create great political coinage towards the next elections.

if you think like this, it " NEVER would be the right time !

the right time is today and not any day later !

I a live time, there will be always up and downs!

Nothing is idle,

but better than nothing,

and sure will be better than in US !

Health system,

SS system, Yes, !!

Or tell me in which country the SS is idle ?

[Nuddy]

Thanks Japanapes. No she is 52 years old

And no as a earlier poster suggested she won't get 7000 THB per month because the news article did give examples of later aged entrants not receiving as much

What interests me is the fact whatever pension she qualifies will be for the rest of her life.

[MaiChai]

Why would Prayut put himself into this scheme? Surely he gets an army and now a government pension (PM is government employee)?

[Beetlejuice]

If a person at the age of 20 starts paying in now for the next 40 years and begins drawing the funds at age 60 (if he/she lives that long), how much will 7000 baht be worth in 40 years at today`s terms? My guess is around 400 baht, perhaps less at present values.

In my opinion unless this pension scheme is indexed linked to rise with inflation, than this is hardly viable.

Also is there any payback, such as in cash or to be paid to a nominee (spouse for example) if the person paying in dies prior to normal pensionable age?

[trogers]

I wonder if this may be a good thing for me and my Thai Wife

She is 52 and has not worked in a outside job for the past ten years we have been together.

I thought maybe its a good plan to pay 1000 thb per month to arrange a small income for her.

She is not capable as some Thai wives are, of running a business so this may be the answer.

Hopefully she does not need to be currently employed when applying for the pension.

As usual the news articles in Thailand always create more questions than they answer.

I have put 18th of August in my diary and will encourage my wife to approach the Banks mentioned to see what she can find out?

Can someone tell me the Thai word for Pension as I do not trust google to get it right.

Regards.

There are savings insurance policies that can meet such a need, with premiums being paid into the policy on monthly, quarterly or yearly basis.

[sawadee1947]

Thought pensioners got 600 baht a month? That's what the wife's grandparents get.

I believe that money is not federal, it comes out of the annual funds that are allocated to each village, town or city. I also believe that may be the best way to do it, because the local officials will be held responsible by the friends and family of the retiree. Money that goes to Bangkok to be redistributed has a strange way of being unaccounted for.

Believe or not. It's written to be a national Fund by the Government. So NOT allocated to each village....Actually it was already in pipelines of Mr. T and his sister. Surprising it will come now onto the market. It's a splendid idea because it is not to expect that children can support their parents if only one or two children.... Same is needed for health Insurance. 30 Baht is rediculous.