The Social Security Office (SSO) will seek cabinet approval for its proposal to have new subscribers receive pension payouts at their retirement age of 60 instead of the present 55 years of age.
The office said the change will apply to new subscribers, not those who have contributed to the fund for a long time and are close to retirement.
A public hearing has been conducted online on the proposed change via the SSO's website.
The office is in the middle of vetting a related law to reflect the change before presenting the legal amendment to the cabinet for approval.
The SSO said that pushing back the payouts would be vital for the social security fund's sustainability.
As society ages, more older people are claiming the monthly payouts while the population of young workers is lessening, which leads to a shrinking social security fund.
At the same time, more advanced medical and healthcare technology has enabled people to live longer. Retirees are claiming the social security fund longer as it keeps paying them the old-age pension until they die.
To make the fund last longer and manage the inflow of subscribers' contributions effectively, pension payouts to members will start when they get to 60 rather than the current 55.
The revision will achieve in keeping the social security fund secure financially, according to the SSO.
The office added that receiving the old-age pension later will let recipients pick up a bigger monthly cheque.
For example, those whose contributions to the social security fund span 20 years from between ages 35 and 55 will begin receiving 5,250 baht a month in pension when they retire at 55 years old.
But if they start claiming the monthly pension at 60 years old, the payout will increase to 6,375 baht.
Meanwhile, the Automotive Workers' Federation of Thailand has opposed the pension payouts being pushed back.
Winai Tintanode, the federation chairman, said factory workers retire at 55 because their work is taxing and it's been the recognised retirement age for the automotive and auto parts industries. The businesses offer generous early retirement schemes to older workers to motivate them to retire early so they can be replaced with younger employees.
If the pension is paid five years later than planned, it would disrupt the workers' financial plans, Mr Winai added. "Another important question is: can employers accept the new rule and keep older workers on their payroll for five more years?" he asked.
Mr Winai said a pension payout at 60 years old may suit service industry or clerical jobs, but not companies that are labour-intensive.
He said it would make more sense to reform the way the social security fund was being managed by bringing in professionals who can direct the fund to effective investments and grow money that way.