Thailand has transformed from an aging society into a completed aged society in a very fast rate since 2005 and most of Thai old persons have not been financially prepared. The study aims to derive a set of indices on old-age financial preparedness in Thailand. These indices aim to quantify the financial readiness of individuals as they approach their pensionable age, and to assess the extent to which their old-age income—whether self-financed or publicly supported—is sufficient to cover their lifetime consumption needs or the income-consumption gap. The gap represented financial preparedness for old age. This study follows the methodology proposed by Ehrlich and Liu (2024) to analyze through the indices the sources of households old-age self-dependency. The longitudinal data from Health, Aging, and Retirement in Thailand during 2015 to 2024 were employed to constructing a set of indices measuring financial preparedness during old age. The preliminary findings with the retirement age of 60 and the life expectancy at 60 indicated that, overall, self-dependency ratio was 0.5751 and public dependency ratio was .4249. Compared with the consumption level, the financial gap or preparedness index was 0.3248. The financial preparedness index reflects the low pension income to accommodate future consumption expenditures for old age of the Thai older persons. Policy towards restructure the existing pension system to accommodate the financial preparedness index is important.

Authors:
Dararatt Anantanasuwong, National Institute of Development Administration, Thailand
Santi Chaisrisawatsuk, National Institute of Development Administration, Thailand

About the Presenter(s)
Dr Dararatt Anantanasuwong is a University Assistant Professor/Lecturer at National Institute of Development Administration in Thailand

See this presentation on the full schedule – Wednesday Schedule

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