Universal pension of 3,000 baht would add 4% to Thai GDP: Chula seminar
Introducing a state pension of 3,000 baht per month for all Thais aged 60 or over would boost GDP growth by 4.17% and inject 700 billion baht into the economy over five years, according to research presented at a recent seminar.
Thailand officially became an ageing society last year, noted participants at last week’s seminar, with over 12.9 million people or 20% of the population aged over 60.
However, there is still no adequate welfare system for the elderly, said the seminar’s four organisers – the Thailand Consumer Council, People's Network for the Welfare State, Welfare State Network for Equality and Fairness (We Fair) and Chulalongkorn University Faculty of Economics.
Currently, all people over the age of 60 receive a monthly allowance of 600-1,000 baht. But after August 12 this year, the state pension was limited to those with no or only small monthly incomes.
The seminar pointed out that the majority of Thais aged 60-69 are forced to continue working to pay off personal debts. Even those who do receive the pension often have debts to pay, resulting in insufficient funds for their daily living. The majority of elderly people are in difficult financial situations, lacking savings and owing debt outside the formal financial system, it added.
A recent study showed almost 90% of elderly Thais do not have personal savings.
Participants said that instead of being cut back, the state pension scheme should be expanded to all with payments of 3,000 baht per month. This would alleviate hardship among the elderly while also stimulating the economy, they added.
