The World Bank's commendation of the government's "retirement lottery" bodes well for the kingdom's behavioural policy design, says Assoc Prof Auschala Chalayonnavin, dean of the Faculty of Social Administration at Thammasat University.
Its praise for the Government Savings Bank's digital lottery for long-term savings during recent talks with Deputy Finance Minister Paopoom Rojanasakul and World Bank executives in Washington, DC, signals a positive step for Thailand as it aims to integrate behavioural incentives with economic objectives, she said.
Auschala: Fears lack of pensions
Assoc Prof Auschala said this initiative aims to foster financial discipline without relying on coercive measures like taxation, making saving feel accessible and rewarding, especially for middle- to lower-income groups.
She said the psychological term for this is "reward reinforcement", which aims to promote positive behaviour.
The World Bank views it as an example of "nudge economics", a part of behavioural economics that looks at how small changes in how choices are presented can have a big impact on people's decisions, she said.
This also aligns with the UN's Sustainable Development Goals (SDGs) and Thailand's policies in addressing the challenges of an ageing society, she added, stressing the need to incentivise retirement savings.
The academic said she believes the World Bank may be interested in adapting this model to regions like Africa, Latin America, or South Asia, where similar social contexts exist.
The retirement lottery comes in the form of a digital scratch-off ticket costing 50 baht, available to all Thais aged 15 and older, with a monthly purchase limit of 3,000 baht. Draws take place every Friday, with winners receiving instant payments via PromptPay.
All ticket purchases are recorded as savings, regardless of whether the buyer wins a prize. The first prize is 1 million baht (five winners), with 10,000 prizes of 1,000 baht, and a special jackpot prize sometimes made available.
When participants turn 60, they will receive the total amount spent on tickets throughout their lives, plus investment returns.
However, Assoc Prof Auschala cautioned that there are potential risks. If not carefully managed, the retirement lottery could be misunderstood as a high-return investment scheme.
She further recommended that the retirement lottery be implemented alongside developing a universal pension system.
She suggested increasing the old-age monthly allowance to at least 2,000 baht, as the current allowance, which starts at 600 baht, is deemed insufficient given today's living costs.
Assoc Prof Auschala said less than 10% of Thai retirees have a pension.
She also argued Thailand could build a more robust retirement framework modelled after Switzerland's three-pillar pension system -- consisting of mandatory state pensions, employer-employee joint saving schemes and voluntary personal saving schemes.