TDRI Warns Social Security Pension Fund Faces Insolvency Risk Within 27 Years

Key summary

The Thailand Development Research Institute (TDRI) has warned that the Social Security Board's pension fund faces a risk of depletion within approximately 27 years, citing declining contributors and an aging population. The institute proposes three immediate measures: gradually increasing contribution rates from 6% to 12%, adjusting investment portfolios to target average returns between 5-6% (up from 2-3%), and raising the retirement age from 55 to 60 years. Additionally, TDRI recommends separating the pension fund from the civil service system to establish an independent organization managed by professional investment CEOs, alongside improved governance and transparency at the Social Security Office.