Agency report says Thai society is aging

On October 9th, the Kasikorn Research Center released a report addressing the pressing issue of an aging population in Thailand. According to their findings, individuals aged 60 and older now account for one-fifth of the total population, reflecting a significant demographic shift towards a more elderly society.

The report notes that by the end of 2023, the number of seniors in Thailand is expected to reach approximately 13 million, which corresponds to 20% of the overall population of about 66 million. This marks Thailand’s official transition into an aging society. Furthermore, projections suggest that by 2029, those aged 65 and above will also comprise 20% of the population, signaling the beginning of what is termed a “super-aged” society.

The Kasikorn Research Center raises concerns that this swift demographic transition could jeopardize the country’s fiscal stability. With a shrinking labor force, tax revenues are likely to diminish while expenditures for elderly welfare—such as pensions and healthcare—are anticipated to rise significantly with the growing number of senior citizens.

To address these challenges, the center calls for the adoption of policies that reflect the changing demographic landscape. They recommend that the government implement more appealing incentive-based strategies beyond the current tax reductions to attract businesses to hire more seniors. For instance, offering subsidies to companies that employ older workers could help reduce some of the financial pressure.

Additionally, the Kasikorn team suggests that the government needs to adjust the social security fund framework to better respond to shifting economic and social realities. This could involve increasing the cap on contribution salaries, integrating foreign labor into the social security system, and modifying investment strategies to yield higher returns.