With one in five Thais now aged over 60, experts are saying the country will face an irreversible demographic crisis if the government doesn't roll out the necessary safeguards to ensure the welfare of its senior citizens.
According to Nonarit Bisonyabut, senior research fellow at the Thailand Development and Research Institute, in the next decade, senior citizens will account for 27% of the entire population. Despite the alarming figure, the government isn't doing enough to support the nation's growing elderly population, he said.
Most senior citizens in Thailand typically depend on their families for support after retirement. However, the nation's declining birth rates, coupled with a longer life expectancy, means a child may end up taking care of not only their parents, but also their grandparents. The number of elderly people without children or close relatives to care for them is also increasing, exacerbating the problem.
Given current trends, state welfare systems are unlikely to be able to keep up and provide an adequate safety net for the elderly. The social security fund's pension scheme, for instance, is already shrinking and old-age allowances require an enormous budget that the state may not be able to afford.
"We're growing older before we are rich," said Mr Nonarit.
In many developed countries, better healthcare allows people to work until they reach the age of 65 or more before retirement. In developing countries, meanwhile, employment typically ends at 60.
In Thailand, however, a lot of people retire at 55 or as early as 50, because of policies allowing people to collect their pension and benefits from age 55. This encourages many, despite being able to work, to retire early to get lump sums of money and pursue other interests.
Back to work
Currently, there are 13 million elderly people in the country, with about 5 million remaining in the workforce. But the majority of them are employed in the agricultural sector, which offers low pay and unstable income flow.
To address this issue, the Ministry of Social Development and Human Security has initiated a scheme to encourage the private sector to hire senior citizens. Although 200,000 older people have expressed interest in working again, only about 6,000 positions are currently available.
"We don't need to worry about workers in the public sector, which has a retirement extension scheme, and those who have enough to go by in retiremenet. We need to worry about private [sector] employees or informal workers who are forced by several factors to stop working," Mr Nonarit said.
The private sector, he said, has yet to fully support elders who want to continue to work, with many employers treating their employees as expendable.
Highlighting a potential solution, Mr Nonarit praised Singapore's "re-employment" policy, in which businesses are encouraged to retain elderly employees until at least 60 or 65 years old or otherwise offer them alternative roles with lower pay.
A debate is also ongoing to decide whether the elderly should be employed by the hour to suit their abilities, he said, noting that critics argue this could discourage employers from offering full-time jobs and benefits, including severance payments.
"Without legal requirements, none of this is likely to happen. It's time to make businesses take long-term responsibility for their employees, instead of treating them as replaceable machines. Thai businesses have benefited from this system for too long," he said.
Legal hurdles
Tanit Sorat, vice chairman of the Employers' Confederation of Thai Trade and Industry, is calling for flexible employment terms as well as tax incentives to encourage the hiring of elderly people.
He said a proposal was floated to the Prayut Chan-o-cha government, but it has been shelved since.
Under the proposal, the retirement age for the private sector is set at 65 with a provision that allows part-time work up to the age of 70 to address concerns about avoiding severance payments.
Mr Tanit said retirees in the government sector have little interest in returning to work, but a study indicates that those who collect lump sums often run out of money in just three years.
"People aged 60–65 are not considered senior citizens in this day and age. They are still in good health. But this issue is complex and requires sweeping legal changes," he said.
Mr Tanit said Thailand has a serious labour shortage and relies on 3.3 million foreign workers, most of whom fill low-skilled roles. However, there is a pressing demand for semi-skilled Thai workers, he said.
He suggested businesses be required to hire a set number of senior workers, similar to existing regulations for hiring people with disabilities.
"We're short of accountants, clerks, salespeople, tutors, legal assistants, even tour guides. They don't need physical strength, but experience and brainpower," he said.
Mr Tanit pointed out that a lot of companies which do hire senior workers by the hour are actually violating current labour laws, saying many do not provide two months' notice before terminating employment, or even provide a minimum of eight-hour pay as required by the law.
"There must be a specific law to regulate the hiring of the elderly. Tax incentives for employers should also be considered," he said.
Signs of change
Despite the uncertainty, there is a growing number of companies hiring retirees to fill the gaps, especially in businesses that require specific expertise or decades of experience.
A report published on Monday by global recruitment firm Robert Walters says demand for retirees to work in Thailand is rising for several key reasons.
Their years of experience mean they have the knowledge and skills to solve problems and provide advice. Also, many prefer part-time or flexible jobs, which suit the needs of companies looking to cut costs.
Some businesses are considering extending the retirement age from 60 to 65 to retain skilled employees, it said.
The report was discussed in a recent post by @ktnewsonline on X, which noted the trend is gaining momentum in the country's job market.
The Ministry of Labour has promoted senior employment since 2022. The Department of Employment says in-demand jobs for elderly employees include housekeeping and guarding private property.
A 2022 survey also found that out of 9,408 seniors interviewed, only 15% were interested in full-time employment, while 76% preferred flexible work arrangements.
Age not a limitation
The ruling Pheu Thai Party has also backed calls for post-retirement employment, saying many elderly people can still contribute to the workforce and the economy.
Krissada Tantherdthit, a secretary to the tourism minister and member of Pheu Thai's economic team, said the key question is to identify appropriate roles for these retirees.
He emphasised the need for data collection to determine the areas of expertise and job opportunities for the retired and create job opportunities accordingly.
Mr Krissada said expanding post-retirement employment is already part of the Pheu Thai platform of integrating healthcare, welfare and job creation for the elderly.
"We must start preparing, otherwise this resource will remain under-used," he said.
Sanga Ruangwattanakul, president of the Khao San Road Business Association, echoed support for the policy, saying many of the seniors still have strong capabilities.
"But if the government wants to make it happen, they need to give employers more incentives to hire seniors... tax breaks, subsidies, something substantial," he said.
Sanga: Employers need incentives
Krissada: Identify appropriate roles
Tanit: Previous plan shelved
Nonarit: Singapore as an example