THAILAND: Developments to the National Pension Fund 2021
Like other Asian countries, Thailand faces demographic changes that could see the nation age rapidly and threaten its retirement system. The average life expectancy in Thailand in 1960 was around 55 years, while in 2020 it had increased to 77 years. By year 2050, it will be at 82 years. Thailand will have an estimated one million more new retirees annually starting from year 2023.
On March 30, 2021, the Cabinet has approved in principle the idea of setting up the National Pension Fund (NPF). As people are living longer and healthier, this policy is aiming to reduce the effect of aging population by ensuring that long-term savings of elderly after retirement will be sufficient for the increasing life expectancy and increasing demand for better quality life.
The government is hoping that the NPF scheme might help to ease government expenditure on old-age health care as well as to strengthen the retirement safety net of the people.
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