Faculty Publications

Title

The Impact of the National Pension Fund on the Suitability of Elderly Pensions in Thailand

Document Type

Article

Publication Date

3-2009

DOI

10.1111/j.1467-8381.2009.02003.x

Abstract

This study combines a traditional hypothetical worker approach with the techniques of stochastic forecasting to provide a better sense about the suitability of the pension system for formal sector private workers in Thailand. With regard to the proposed defined-contribution pension, we find that workers with a 40-year career can only expect a median replacement rate of approximately 13–14 percent of their final 5 years of income. Most of the pension benefits will still likely come from the unsustainable defined-benefit pension system and further reforms will be needed to maintain suitable pensions.