Thai Government Seeks to Prevent Social Security Fund Collapse
The Thai government is taking steps to prevent the Social Security Fund from collapsing within the next decade due to insufficient funding. Proposed measures include increasing contributions, extending the retirement age, attracting migrant workers, and boosting investment returns. Shifting investments toward higher-risk assets is also being considered to ensure fund sustainability.
Labour Minister Phiphat Ratchakitprakarn has announced initiatives to prevent a potential collapse of Thailand's Social Security Fund (SSF) within the next decade due to funding insufficiencies.
The SSF, currently holding 2.6 trillion baht and projected to grow to 4 trillion baht by 2034, faces sustainability challenges due to a shrinking workforce and an ageing population.
Proposed measures include increasing contributions, extending retirement age, attracting migrant workers, and boosting investment returns.
The SSF plans to shift investments towards higher-risk assets to achieve higher returns, potentially raising the high-risk investment rate from 40% to 50%.
An upcoming session with Temasek and the International Labour Organization is scheduled to brainstorm sustainable solutions.
The SSF, currently holding 2.6 trillion baht and projected to grow to 4 trillion baht by 2034, faces sustainability challenges due to a shrinking workforce and an ageing population.
Proposed measures include increasing contributions, extending retirement age, attracting migrant workers, and boosting investment returns.
The SSF plans to shift investments towards higher-risk assets to achieve higher returns, potentially raising the high-risk investment rate from 40% to 50%.
An upcoming session with Temasek and the International Labour Organization is scheduled to brainstorm sustainable solutions.
