Ageing Asia: Why Thailand Is Forced to Raise the Retirement Age to 65

There is also a demographic shift in Thailand that is transforming its economic policies and its workforce. With the country accelerating into an ageing society, now the policymakers are contemplating on increasing the retirement age to 65 years old in order to tackle labour unavailability as well as contend with long term economic sustainability.

The argument shows a bigger problem in the Asian continent, where various nations are having to deal with dwindling work force and an ageing population.

The Aging Population Issue in Thailand

Demographic experts claim that Thailand has been transitioning into a super-aged society, where there will be a major proportion of over 60-year-olds of the population in the near future. This change is being motivated by a number of factors:

• Lower birth rates
• Increased life expectancy
• A declining pool of young entry workers to the labour force.

The trends are putting pressure on the social security systems as well as the economy of the country.

Why is the Retirement Age going to be increased?

Presently, 60 is the standard retirement age in most of the government agencies in Thailand. But policymakers feel that it should be increased to 65 so as to stabilize the workforce. Key reasons include:

1. Labour Shortages

Thailand needs migrant workers to occupy working positions in the construction, agricultural, and manufacturing sectors. The fewer young Thai workers would increase retirement age as they might extend the working days of experienced employees.

2. Economic Sustainability

A growing population implies the increased number of retirees that consume pensions and healthcare systems. When we increase the age of retirement, this gives the people more years to work and a chance of earning more in the economy.

3. Experience and Skills Retention.

Elderly workers usually possess good experience. This will mean that they can continue working longer giving business firms institutional knowledge and skilled labour.

A Trend Across Asia

Thailand is not the only one that thinks about raising the retirement age. Most governments in Asia are restructuring the retirement policies to suit the demographic changes.

Already, countries such as Japan, South Korea and Singapore have made efforts to make their citizens work longer in old age due to the aging population.

The move is indicative of a local fact: the economic growth is becoming more and more dependent on retaining the older workers.

Challenges and Concerns

Although such a proposal has an opportunity to empower the labour force, it is also causing concern among the staff and the labour unions. Some key issues include:

• Minimal employment challenges of young people.
• Health issues of older employees.
• Pensions discrepancies between private and public sectors.
• Experts explain that the success of such reforms is based on the needs in the economy with the welfare of the workers.
• Getting ready to retire in an Ageing Workforce.
• Thailand might require more policies to make the transition success, which include:
• Flexible work schedules among the aged employees.
• The skills will be updated through life long training.
• Better health and healthy work environments.

All these measures will assist in making sure that the long work life is not fruitless and unfavorable.

A Demographic Turning Point

The possibility of Thailand to increase the retirement age to 65 has been an indication of a more fundamental change in the process of taking place in Asia.

With the aging of populations and shrinking working days, the governments need to reconsider vintage retirement policies. In the case of Thailand, it can be necessary to adjust to these demographic facts in order to ensure that the economy will not shake in the next decades.

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