Aged, ignored, impoverished: Thailand’s elderly face another blow

Hopes for better welfare have been dashed for most Thai seniors just days before the country marks National Elderly Day on April 13.

Prime Minister Paetongtarn Shinawatra rejected an amendment to the pension bill, calling it financially unfeasible. The prime minister is required to endorse draft bills on financial matters before they go to Parliament, and her rejection of this one means it has no chance of progressing.

“I’m disappointed,” said a 76-year-old citizen after learning the government had once again ignored pleas from seniors for better welfare provision.

Nimit Tien-udom from the WeFair non-governmental organisation said the bill’s rejection deprived Thais of much-needed support.

Thais aged 60 and above currently receive a monthly government subsidy of 600 to 1,000 baht, depending on age. The pension starts at 600 baht and rises by 100 baht every year.

However, the payment is well below the 3,000-baht poverty line set in Thailand and, therefore, deemed too little to live on.

Little progress

Civil society networks have been pushing for a “living pension” since 2008. Yet, nearly two decades later, little progress has been made amid stiff opposition from various agencies.

“We have been pushing for a pension starting at 3,000 baht per month, so the elderly can meet their basic needs even if they have no jobs or children to support them,” Nimit said.

Somkid Chueakong, the PM’s deputy secretary-general, said Paetongtarn had dropped the bill after relevant agencies argued that a 3,000-baht pension would cost 400 billion baht annually – an amount that would be impossible for the government to find.

“The government does not disagree with the bill’s principles … it’s just that the scheme is financially unfeasible,” he said.

Paetongtarn’s government has, however, approved a plan to raise the monthly elderly subsidy to between 700 and 1,250 baht, though no timeframe for the hike has been given.

“Yes, we have heard of the approval but have not seen the government seek funding for this plan. So, we don’t really know when it will happen,” Nimit said.

Fast-ageing population

The proportion of elderly people in the Thai population has risen quickly, from 14.3% in 2013 to 20.2% a decade later. Thailand now fits the definition of an aged society, with elderly citizens projected to account for 27.5% of the population by 2033.

The National Economic and Social Development Council (NESDC) reports that 41.4% of the elderly population have less than 50,000 baht in savings, while 45.7% have no savings at all. Many elderly Thais borrow money to scrape by, with loans in this segment of the population averaging 404,483 baht per person.

Meanwhile, monthly living expenses for an elderly person average 13,000 baht, not including housing.

With the government granting them such tiny pensions, many must either rely on their children for financial support or struggle to find income from jobs.

Data shows that only about 20% of the elderly Thai population enjoys a comfortable retirement, especially since many once served in the government sector.

According to the National Statistical Office, the ratio of elderly people to working-age citizens rose from 10.7% in 1994 to 31.1% last year. The potential support ratio, or the number of working-age individuals supporting the elderly, has dropped over the period from 9.3 to 3.2.

Unprepared and running scared

Dr Nonarit Bisonyabut, a research fellow at the Thailand Development Research Institute (TDRI), said the kingdom is unprepared to deal with its ageing society.

“There is a huge gap between the elderly care in Thailand and that provided in better prepared nations like Japan and Scandinavia,” he said.

Nonarit added that many approaches to dealing with an ageing population were available, but Thailand has not even taken the first step.

Thailand’s retirement welfare system was graded “C” and ranked 42nd out of 48 countries in the 2024 Mercer CFA Institute Global Pension Index (MCGPI).

By contrast, the Netherlands, which tops the list, offers a generous pension of 25,000 baht per month to both its own citizens and expats working there. The country operates a well-funded universal pension scheme, prescribing mandatory occupational pensions and employing transparent governance and risk-management practices.

What about Thailand?

Parliament has recently taken steps to amend the National Savings Act to introduce a savings-lottery system. Recognising that many Thais regularly play the lottery, the government plans to issue a new type of lottery ticket that adds to their savings. Each 50-baht ticket will offer the chance to win a prize. However, money spent on losing numbers will be put away in the punter’s name for the future.

“They will be able to claim these savings, plus accumulated benefits, once they turn 60,” Deputy Finance Minister Paopoom Rojanasakul said.

Nonarit is also urging the government to increase the value-added tax (VAT) to support elderly care.

“Our VAT of 7% is relatively low. In some countries, it’s as high as 20%,” he noted.

All Thais should be saving and preparing for their retirement instead of waiting for help from others, he added. For example, people in the 45-60 age group are advised to give up unhealthy habits like smoking and drinking for a healthier lifestyle that could extend their working age. He also urged them to take up exercise and start making long-term financial plans

“You can also make elderly-friendly home improvements before retiring. Anti-slip features in the home can prevent falls,” he said.

Sitiphol Chuprajong, who leads a Mirror Foundation project helping the underprivileged and elderly find jobs, said 70% of those seeking jobs via the project are elderly. The oldest applicant is 83.

“We are pushing to design jobs suitable for the elderly, but to do that, we need support from other members of society, especially the government,” he said.

Some countries reserve certain less strenuous jobs for seniors, such as collecting used plates at food courts.

“If they are employed, they can support themselves,” Sitiphol noted.