When Prime Minister Anutin Charnvirakul pitched the idea of raising the retirement age for civil servants from 60 to 65 years old, the proposal sparked significant debate in Thai society — a society increasingly described as “aged”.
Academics have noted that to support a growing “silver economy” — a market for products, services and activities targeting people aged 50 and above — Thailand must improve infrastructure and job opportunities, especially for members of Generation X.
Gen X, born between the mid-1960s and early 1980s, now represents Thailand’s largest demographic group.
Nonarit Bisonyabut of the Thailand Development Research Institute (TDRI) noted that Thailand is on track to become a “super-aged society” within nine years, with over 28% of the population aged 60 and older.
While this poses challenges, it also creates opportunities for the silver economy, he said.
His study found that consumption among senior citizens reached 2.18 trillion baht in 2023 and is projected to rise to 3.5 trillion baht by 2033. Revenue generated by the elderly is also expected to increase from 640 billion baht in 2024 to 880 billion baht. The number of senior workers is forecast to reach 6.6 million, or 37% of the elderly population.
And yet there is another looming reality: centenarians, those aged over 100 years old, in Thailand are growing by the number, posing challenges to policymakers not only on how to deal with an aged society, but also a long-lived one, according to Nattapat Sarobol, a lecturer specialising in elder social welfare at the Faculty of Social Administration, Thammasat University.
“Research conducted by Thammasat University on centenarians and older has found that Thailand has over 40,000 centenarians, ranking fifth in the world,” she said.
“This number is expected to continue to increase. So, if Thai society continues to adhere to the 60-year retirement age, this will mean retirees will have a 40-year age gap, leading to a life without work. The question is, where will they get their livelihood?”
OLD AND WORKING
Earlier this year, the Institute for Population and Social Research released the Mahidol Population Gazette, revealing updated national demographics. Thailand’s total population is now 65.69 million, with 8.3 million people living in the capital.
Of that population, 41.75 million are part of the labour force, aged between 15 and 59. Another 14.45 million are aged 60-65, and 9.7 million are over 65.
Conversely, the number of young people (aged 0-21) is low, at only 15 million. Equally concerning is that the population of women of reproductive age (15-49) stands at about 15 million, while the birth rate is just 6.2 per 1,000 population — one of the lowest in the region.
Ms Nattapat said that within the next decade, the effects of an ageing society will become much more evident as a large number of Gen X workers “will inevitably be drawn back into the workforce due to a looming labour shortage”.
“Even though many are now opting for early retirement due to the poor economy, they will likely return to work to fill growing vacancies.”
However, the transition back into the workforce will be challenging, she said. Seniors may face bad attitudes from their younger colleagues, she added.
Ms Nattapat then urged the government to invest in infrastructure and create senior-friendly workplaces. She emphasised the need to remove age-based barriers to employment and provide training programmes or even access to funding.
She also warned that a national retirement policy limited to Thailand’s 1.75 million civil servants would be ineffective if it ignores the country’s 18 million private-sector employees.
LONGER EMPLOYMENT
Mr Nonarit of TDRI said raising the retirement age is a common response in developed countries with healthier ageing populations.
However, the concept is still relatively new in Thailand and will require public understanding and carefully planned policies, he said.
He pointed out that the government has limited capacity to support the elderly, with social welfare payments currently below 1,000 baht per month.
“It’s essential that older citizens can generate income throughout their lives,” he said.
However, many workers aged 50 and above voluntarily leave the workforce, relying on final payments from the Social Security Office. Much of this money is invested — often unsuccessfully — and when they attempt to re-enter the job market, they face diminished compensation and limited opportunities.
“The key challenge is how to retain them in the workforce longer,” Mr Nonarit said. “We must prioritise keeping them in the system. The government should offer incentives to encourage longer employment.”
He cited Singapore’s national “Reemployment” policy, which allows eligible retirees to continue working and provides a dedicated fund for upskilling and reskilling older workers for new roles.
A senior government official, who spoke anonymously, said the retirement age increase is not a major issue in itself, since many older workers remain healthy. The real problem is that the current system does little to support them, the official said.
“Many can’t advance in their careers because of corruption and favouritism in state agencies,” the official said. “They no longer have family obligations and are happy to leave a broken system. If we want to retain them, the workplace must be reformed to promote transparency and good governance.”