Reflecting on data from Thai households, it is evident that a significant portion of individuals over 50 years old have low incomes, accounting for about 42% of Thai households. This indicates a lack of readiness for retirement in Thai society.
Therefore, they must rely on income outside the household, such as government grants. Income that is not in the form of money (or inherited items) results in a low financial buffer in the event of an emergency or reduced income. This is a major risk for the Thai economy going forward, both in terms of household fragility and fiscal burden.
The 2023 SCB EIC Consumer survey results indicate that the issue of aging before becoming financially secure in Thai society remains a concern in the short term. The survey found that a significant number of individuals in the 51-60 age group, who are close to retirement, have limited assets.
Especially people with incomes less than 50,000 baht per month are at high risk of having insufficient income to cover expenses after retirement. An important factor affecting the accumulation of assets for this group is the problem of debt burden. 56% of households with debt found that their total assets were less than 1 million baht, which is considered a high proportion.
Saving money to prepare for retirement for Thai people
In the long term, SCB EIC sees savings problems as an important risk to readiness after retirement. The SCB EIC Consumer survey 2023 found that overall, less than half of working-age people are able to save money every month, and approximately 1 in 4 who cannot save at all Especially for those with incomes of less than 15,000 baht per month, which will leave only 1 in 10 people able to save regularly.
The main issue is the high expenses combined with low income. Working individuals aged 31-50 face more debt problems than other groups because they have started to accumulate significant debts.
SCB EIC estimates that savings behavior will have a significant impact on the problem of getting old before you get rich among Thai people. Especially people who are old and have low incomes. The survey found that there was the least amount of savings discipline.
Meanwhile, the new generation under 30 years of age was found to be able to start saving regularly at a lower income than other groups. This group has the habit of saving before spending starting with an income of 30,000 baht per month. But if it is a new generation with income Earning less than 30,000 baht per month, it was found that there was still a lack of savings discipline. Partly because they spend a lot according to social trends. This is different from older people who mostly start the habit of saving before using after earning 50,000 baht per month or more.
For investment survey results It was found that younger people have a lower proportion of investments than older people. And they rarely have assets other than cash or deposits. Even though the younger generation seems to be more interested and want to invest than the older group. But the problem of lack of investment funds and knowledge and understanding in investing in financial assets is still a major obstacle for the new generation.
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