PUBLISHED: 3 Does 2025 at 07: 35
The World Bank’s praise of the “retirement jackpot” by the government is encouraging, according to Assoc Prof Auschala Chalayonnavin, professor of the Thammasat University’s University of Social Administration.
Its reward of Thailand’s long-term saving program, which it has recently discussed with Deputy Finance Minister Paopoom Rojanasakul and World Bank managers in Washington, DC, is a good step in the direction of the country, she said.
Auschala: Concerns about a lack of retirement
Assoc Prof. Auschala stated that this initiative aims to promote fiscal control without relying on aggressive measures like taxation, making saving feel fulfilling and accessible, especially for center- to lower-income groups.
She claimed that the internal term for this is “reward reinforcement,” which aims to promote good behavior.
The World Bank sees it as a case study of “nudge economics,” a behavioural economics approach that examines how small adjustments to how decisions are presented may affect people’s decisions, according to the World Bank.
She continued, citing the need to encourage retirement savings and the UN’s Sustainable Development Goals ( SDGs ) and Thailand’s policies in addressing the challenges of an aging society.
The scientific stated that she thinks the World Bank might be interested in bringing this concept to areas like Africa, Latin America, or South Asia, where similar social settings exist.
All Thais aged 15 and older can purchase a digital scratch-off solution for 50 baht with a regular purchase cap of 3, 000 ringgit. The pension lottery is available in the form of a 50 baht modern scratch-off ticket. Every Friday, victors of the draw will receive instant payments from PromptPay.
Regardless of whether the customer receives a reward, all ticket purchases are recorded as benefits. The first prize, which includes 10,000 prizes worth 1, 000 baht, and occasionally a special jackpot prize, is 1 million baht ( five winners ).
Individuals who turn 60 may get the total amount spent on all of their life’s tickets, as well as investment returns.
But, Assoc Prof. Auschala offered a warning about potential risks. The pension jackpot may not be understood as a high-return expense system if it isn’t properly managed.
She further suggested that the creation of a universal pension system been combined with the implementation of the pension lottery.
Given today’s cost of living, she suggested reducing the old-age regular income to at least 2, 000 ringgit, as the present allowance, which starts at 600 bass, is deemed insufficient.
Less than 10 % of Thai seniors have a pension, according to Assoc Prof Auschala.
She added that Thailand could develop a more solid retirement system that was modeled after Switzerland’s three-pillar pension system, which included mandatory state pensions, employer-employee combined saving schemes, and deliberate personal savings plans.