Poverty and Financial Security of the Elderly in Thailand

Currently, Thailand is facing serious demographic changes. The percentage of the elderly population (60 years of age and older) is increasing gradually and will exceed 20% of the total population in 2023. Presently, the family, especially children, is still the most important source of financial security for the elderly in old-age. Nevertheless, a decrease in the potential support ratio reflects the fact that informal financial support from the family is going to decrease whereas the demand for formal financial security will increase., The Thai government currently provides a range of programs as a part of social safety net for guaranteeing a certain income level in old-age. Among employed persons, approximately one-third of them has been financially insured in the old-age life stage under mandatory schemes such as the Social Security Fund (for private employees) and the Government Pension Fund (for government officers). Two-third of employed persons, mostly informal sector workers, have not been covered under a compulsory scheme. For the uninsured and underprivileged elderly, the mean-tasted old-age allowance system provides minimal support. This paper presents issues relating to pension debate in Thailand, which is mainly focused on broadening coverage. Three policy options are raised and discussed: (1) the promotion of the establishment of a community-based social welfare fund; (2) the expansion of the coverage of the old-age allowance system; and (3) the establishment of national pension system, which covers employed persons who do not currently receive coverage.