Impact of the National Pension Fund on the Suitability of Elderly Pensions in Thailand*

Pfau, Wade; Atisophon, Vararat

doi:10.1111/j.1467-8381.2009.02003.x

Cited by 4 publications

(1 citation statement)

References 7 publications

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“…Each system has a distinct target audience and manner of public funding. Only commercial and public sector workers in the formal sector are covered by retirement income maintenance schemes (Pfau and Atisophon 2009). The formal sector presently maintains the following programs: old age (or social security) pension, government pension fund, voluntary provident fund, and retirement mutual fund (Beattie 1998).…”

Section: Pension Systems In Thailandmentioning

confidence: 99%

Towards Sustainable Retirement Planning of Wageworkers in Thailand: A Qualitative Approach in Behavioral Segmentation and Financial Pain Point Identification

Ketkaew

Wouwe

Jorissen

et al. 2022

Risks

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Thailand recently reached “aged” society status, signifying that over twenty percent of the population is over sixty. Considering that Thailand has a low literacy rate, a fractured pension system, and no regulations that could provide sufficient income to cover basic needs after retirement, there will be economic repercussions if the situation is not handled soon. The government and financial institutions have been encouraging Thai citizens to prepare retirement plans but lack understanding of the root causes of being unprepared for retirement. The objectives of this qualitative research were to explore the behavior, knowledge, and preparedness towards retirement in governmental and private wageworkers. Moreover, the study aims to identify the pain points of being unprepared for retirement and deliver the optimal solutions and sustainable retirement plans suitable for each segment. This article employed a sample of 46 wageworkers in Khon Kaen, Thailand with ages ranging from 20 to 59 years old. Qualitative semi-structured in-depth interviews and qualitative content analysis were conducted with the respondents asking about their income, expenses, pains, and problems towards saving for retirement, their desired outcome after they retire, and how they would achieve it. The framework used for the in-depth qualitative interview was by utilizing the customer, problem, and solution zoom tool. The research contributions were to facilitate Thai citizens being ready for retirement stages and overcome post-retirement risks sustainably. The results revealed that the sample could be divided into four segments by their characteristics. Two low-income segments share the same traits and behaviors that can prove that financial literacy plays an essential role in retirement readiness. Lower-income wage workers do not have their money put in place to prepare for retirement. Additionally, this article discussed the study’s implications for wageworkers, employers, and the Thai government. This article recommended that Thai citizens should accumulate wealth in various ways, including investment in financial assets and earning additional income from a second job. Employers should provide suitable retirement contribution schemes. The government should launch a policy enabling above-60-year-old seniors to continue working.

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Section: Pension Systems In Thailandmentioning

confidence: 99%

Towards Sustainable Retirement Planning of Wageworkers in Thailand: A Qualitative Approach in Behavioral Segmentation and Financial Pain Point Identification

Ketkaew

Wouwe

Jorissen

et al. 2022

Risks

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Reforming Pension Funds in Sri Lanka: International Diversification and the Employees' Provident Fund

Kumara

Pfau

2012

Australian Economic Papers

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The Employees' Provident Fund (EPF) of Sri Lanka is a defined-contribution pension fund whose pooled asset holdings consist mainly of local government bonds. Regulations prohibit international diversification, and this paper aims to quantify the extent of the potential harms, if any, caused by this constraint. To improve the robustness of the findings, we use two distinct methodologies. These include traditional mean-variance analysis from modern portfolio theory, and Monte Carlo simulations that estimate the distribution of wealth accumulated at retirement from the contributions of a hypothetical worker. Both methods produce qualitatively and quantitatively similar results: workers with risk aversion varying from aggressive to conservative will be better served by allowing international diversification. The results are particularly persuasive for the second approach. The EPF fund managers will likely behave fairly conservatively toward risk, which suggests that around half of the fund assets should be invested abroad.

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Securing the Future for Old Age in the Asia and Pacific Region: Short-Term and Historical Challenges

Aspalter

2009

SSRN Journal

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Impact of the National Pension Fund on the Suitability of Elderly Pensions in Thailand*

Cited by 4 publications

References 7 publications

Towards Sustainable Retirement Planning of Wageworkers in Thailand: A Qualitative Approach in Behavioral Segmentation and Financial Pain Point Identification

Towards Sustainable Retirement Planning of Wageworkers in Thailand: A Qualitative Approach in Behavioral Segmentation and Financial Pain Point Identification

Reforming Pension Funds in Sri Lanka: International Diversification and the Employees' Provident Fund

Securing the Future for Old Age in the Asia and Pacific Region: Short-Term and Historical Challenges

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