Ministry pushes new savings fund

Ministry pushes new savings fund

The Finance Ministry is pushing for a mandatory provident fund intended to be a savings reserve for employees nationwide after voluntary provident funds were found to be inadequate.

Sittasri Nakasiri, director of the Portfolio Advice and Provident Fund Supervision Department at the Securities and Exchange Commission, said the country will become an aged society next year, so the public and private sectors are looking at ways to prepare people for retirement. An ageing society by definition is one where more than 14% of the population is over 65. In the next 10 years, the number of people aged 65 will exceed 20% of the population.

However, a voluntary provident fund does not live up to expectations, Ms Sittasri said. Currently, the number of provident fund members stands at 2,843,143, which makes up only 17.7% of all workers.

A study by the National Economic and Social Development Council this year suggests that people need savings of at least 3.1 million baht after retirement or 8,611 baht per month for 30 years. The amount excludes certain healthcare expenses funded by the government healthcare scheme.

Ms Sittasri said a bill to introduce a mandatory provident fund would be proposed to ensure workers have sufficient income after retirement.



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