Thailand Raises Retirement Age to Sixty-Five
The Thai Labour Ministry plans to raise the retirement age to sixty-five, aligning with Singapore and Switzerland, due to health improvements. Amendments to the Social Security Act will also include registering two million migrant workers and self-employed individuals, alongside a proposal to increase fund contributions by 6.25 percent. To manage rising medical costs, the Social Security Fund plans strategic investments and targets a five percent return by 2025.
The Labour Ministry of Thailand has announced plans to increase the retirement age for both private and government sectors to sixty-five years, matching Singapore and Switzerland.
The change, announced by Minister Phiphat Ratchakitprakarn, is in response to improved health and medical advancements.
Additionally, the ministry plans to amend the Social Security Act to include two million migrant workers from Myanmar, Laos, and Cambodia, and register self-employed individuals in currently exempt industries into the Social Security system.
The proposal includes increasing fund contributions from employers and employees by two percent each, with a government contribution of 2.5 percent, totaling a 6.25 percent increase.
The ministry aims to stabilize Social Security Fund's fluctuating medical costs, currently sixty billion baht annually, by transferring responsibility to insurance companies.
By 2025, the Social Security Fund targets a 5 percent return, aided by overseas investments garnering six to seven percent returns in the US and Europe.
The SSO will adjust its investment strategy to sixty-five percent in low-risk assets and thirty-five percent in higher-risk options, aiming to extend fund life and ensure financial stability amidst demographic shifts.
The change, announced by Minister Phiphat Ratchakitprakarn, is in response to improved health and medical advancements.
Additionally, the ministry plans to amend the Social Security Act to include two million migrant workers from Myanmar, Laos, and Cambodia, and register self-employed individuals in currently exempt industries into the Social Security system.
The proposal includes increasing fund contributions from employers and employees by two percent each, with a government contribution of 2.5 percent, totaling a 6.25 percent increase.
The ministry aims to stabilize Social Security Fund's fluctuating medical costs, currently sixty billion baht annually, by transferring responsibility to insurance companies.
By 2025, the Social Security Fund targets a 5 percent return, aided by overseas investments garnering six to seven percent returns in the US and Europe.
The SSO will adjust its investment strategy to sixty-five percent in low-risk assets and thirty-five percent in higher-risk options, aiming to extend fund life and ensure financial stability amidst demographic shifts.
