The Thai government, which has a serious aging problem, eventually brought up the card of extending the retirement age. It has decided to raise the retirement age of the public and private sectors to 65.
According to local media Bangkok Post and Bloomberg News on the 26th (local time), Thailand’s Labor Minister Pipat Ratchakitpraghan said he plans to raise the retirement age of the government and private sector.
Minister Pippot explained that the decision was made in consideration of the development of medical and medical technology.
According to the Ministry of Labor, the current retirement age is 60 for civil servants and employees of public institutions, and 55 to 60 for the private sector.
Thailand is one of the most aging countries in the world. According to the World Health Organization (WHO), life expectancy in Thailand stood at 75.3 years in 2021, up more than four years from 2000.
In particular, the total fertility rate (the number of children one woman is expected to have in her lifetime) has recently declined rapidly to around 1.16.
In this regard, Minister Pippot pointed out that if no action is taken now, the social security fund could be depleted within the next 30 years.
As a result, he said he aimed to raise the retirement age and raise the return on operating social security funds to at least 5% next year from 2.3 to 2.4% last year.
To this end, the Thai government will invest 35% of its social security fund assets next year in high-risk assets such as domestic and foreign stocks and real estate, and 65% through low-risk assets such as government bonds and savings.
The Ministry of Labor also plans to revise the Social Security Act to expand social security benefits to 2 million migrant workers, including those from Myanmar, Laos, and Cambodia.
JENNIFER KIM
US ASIA JOURNAL
