Govt mulls ‘retirement lottery’ to promote saving habits for would-be seniors

With Thailand expecting its ageing population to total more than 13 million this year, the Finance Ministry is considering launching a new lottery to encourage saving among ageing citizens and ensure that they will have stable finances after retirement.

Deputy Finance Minister Paopoom Rojanasakul said on Thursday that prizes for the retirement lottery will be drawn every week, while tickets that did not win will be accumulated as savings. Buyers can only withdraw this money when they reach 60 years of age.

The lottery, to be issued in digital format only, will be funded by the National Saving Fund (NSF), he said.

Each ticket will cost 50 baht, and each person can buy a maximum of 3,000 baht of tickets per month, via NSF’s application.

In the first phase, tickets will be available to selected groups of around 20 million people. These include members of NSF, self-employed insurers under Section 40 of Social Security Act, and informal workers. The ministry will consider expanding target groups depending on the response, said Paopoom.

The first prize of the retirement lottery, to be announced every Friday evening, is 1 million baht. The weekly drawing will also determine 10,000 second prizes at 1,000 baht each.

Paopoom said the lottery is expected to use 780 million baht per year, which is significantly lower than the government’s senior allowance scheme.

The scheme provides monthly payments of 600 to 1,000 baht to eligible seniors aged over 60. During fiscal 2023, the scheme cost the government 86 billion baht, and is estimated to cost over 90 billion baht this fiscal year.

“The proposed retirement lottery is just a rough idea and will undergo polishing and public hearings,” said Paopoom. “To make it possible, an amendment of the National Saving Fund Act is also required, which could take from six months to a year. However, we will try to launch it as soon as possible.”