Thailand plans to raise the retirement age to 65 due to increased life expectancy and healthcare advancements, while also expanding social security benefits for migrant workers and addressing rising medical costs.
Retirement Age Increase in Thailand
Thailand is set to increase the retirement age to 65 for both the private and government sectors. This change is driven by advancements in healthcare and the rising life expectancy, which now averages 75.3 years. As people live longer, the government identifies the need to address financial implications related to escalating medical costs and demographic shifts.
Social Security Enhancements
In conjunction with the retirement age adjustment, the government plans to boost contributions to the social security fund and expand benefits for approximately 2 million migrant workers from neighboring countries. They are also evaluating options to stabilize fluctuating medical costs into fixed expenses, ensuring better financial planning for retirees.
Current Retirement Framework
Currently, Thailand’s retirement age stands at 60. Eligible workers can receive benefits from the Social Security Fund, including old-age pensions for long-term contributors and lump-sum payments for those with shorter contributions. Additionally, many private companies offer provident funds, providing retirees with additional financial security.
