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Thailand has the worst Pension System from 37 Countries

Thailand was in the bottom slot of 37 countries surveyed and should introduce a minimum level of mandatory retirement savings and increase support for the poorest, the report said.

Boris Sullivan

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The Netherlands again took the top spot in 2019 with most workers benefiting from defined benefit plans based on lifetime average earnings.

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Demographic aging has been especially rapid in Thailand compared with other major emerging Asian economies. The percentage of the Thai population aged 65 or over is expected to climb from around 10% at present to over 20% by 2030s.

Given that the Thai retirement system is ranked at the bottom of the list, those numbers mean that more than a quarter of Thailand’s people will be over 60 by 2030—and most of them will be poor, unless they have worked as civil servants, or in a very big company with voluntary social benefits.

The survey by the Melbourne Mercer Global Pensions Index 2019  of 37 nations, which covers almost two-thirds of the world’s population, uses 40 metrics to assess whether a system leads to improved financial outcomes for retirees, whether it is sustainable and whether it has the trust and confidence of the community, reports Bloomberg

The U.K. and the U.S. both earned a C+ grade, coming in 14th and 16th place respectively. Both could boost their scores by raising the minimum pension for low-income pensioners, according to the report.

Japan came in at No. 31 and was ranked with a D — a grade that reveals “major weaknesses and/or omissions that need to be addressed.”

A key recommendation included raising the state pension age as life expectancy continues to increase in the nation. Thailand was in the bottom slot and should introduce a minimum level of mandatory retirement savings and increase support for the poorest, the report said.

Thailand was in the bottom slot of 37 countries surveyed and should introduce a minimum level of mandatory retirement savings

In Thailand, only those who work for the government system will receive a pension that is calculated from their salary.

For the majority, Thai citizens will receive pensions as follows, age 60-69 receives 600 THB/month, age 70-79 receives 700THB/month, age 80-89 receives 800 THB/month, age 90+ receives 1,000 THB/month. This number does not include income received from the Welfare Card, also called the poor person’s card in Thailand.

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50:50 campaign may not get immediate extension

National News Bureau of Thailand

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BANGKOK (NNT) – The government’s 50:50 co-pay campaign expiring on 31st March may not be getting an immediate campaign extension. The Minister of Finance says campaign evaluation is needed to improve future campaigns.

The Minister of Finance Arkhom Termpittayapaisith today announced the government may not be able to reach a conclusion on the extension of the 50:50 co-pay campaign in time for the current 31st March campaign end date, as evaluations are needed to better improve the campaign.

Originally introduced last year, the 50:50 campaign is a financial aid campaign for people impacted by the COVID-19 pandemic, in which the government subsidizes up to half the price of purchases at participating stores, with a daily cap on the subsidy amount of 150 baht, and a 3,500 baht per person subsidy limit over the entire campaign.

The campaign has already been extended once, with the current end date set for 31st March.

The Finance Minister said that payout campaigns for the general public are still valid in this period, allowing time for the 50:50 campaign to be assessed, and to address reports of fraud at some participating stores.

The Fiscal Police Office Director General and the Ministry of Finance Spokesperson Kulaya Tantitemit, said today that a bigger quota could be offered in Phase 3 of the 50:50 campaign beyond the 15 million people enrolled in the first two phases, while existing participants will need to confirm their identity if they want to participate in Phase 3, without the need to fill out the registration form.

Mrs Kulaya said the campaign will still be funded by emergency loan credit allocated for pandemic compensation, which still has about 200 billion baht available as of today.

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Customs Department Considers Measures to Help SMEs

National News Bureau of Thailand

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BANGKOK (NNT) – The Customs Department is seeking ways to reduce the impact of the exemption on import tax and value-added tax (VAT) for imported goods worth up to 1,500 baht, as such measures are hurting small and medium-sized enterprises (SMEs).

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