More than 16 million informal workers in Thailand have not participated in any savings scheme to prepare for their life during retirement even though the country is expected to become an aged society in the next two years.

Thai Finance Minister Arkhom Termpittayapaisith said that Thailand is now an aging society as at least 10% of its population has been 60 years old and more since 2005.

In the next few years, the country will become an aged society with the number of elderly people surging to 20% of the total population.

The country will set to become a super-aged society in 2034 when the elderly make up 28% of the total population.

In 2022, Thailand had 29.5 million informal workers but only 13.4 million of them were utilising a saving scheme for their retirement.

Arkhom said that the Finance Ministry has tried to make the National Savings Fund (NSF) more attractive to informal workers.

Last month, Thailand’s Government cabinet approved an increase in the Government’s contribution to the NSF by up to 1,800 baht (over 53 USD) for every member of all ages yearly.

The cabinet also approved that members will make the maximum contribution of 30,000 baht every year instead of 13,200 baht as currently.

The changes are expected to help ensure fund members who retired at 60 years old will get a monthly pension of 12,000 baht. Currently, they receive a monthly average pension of 5,000 baht.

The current contribution of the Government to the NFS varies depending on the age of the participating member. For example, for those aged from 15 to 30, the government pays 50% of their contribution, but not more than 600 baht per year. For those aged between 50 and 60, the government pays 100% of their contribution, but no more than 1,200 baht per year./.

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