Retirement age vexes

Prime Minister Anutin Charnvirakul recently floated the idea of extending the mandatory retirement age for civil servants from 60 to 65 years old. Though this idea is not new, the fact the proposal comes directly from the prime minister gives it enough political weight to make state agencies take the idea seriously.

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The extension of the retirement age has been discussed before in Thailand, as similar policies have been adopted in some European countries. Last year, Thailand officially became an ageing society, with more than 20% of its population aged 60 or above.

This demographic shift weighs heavily on economic, social and, more particularly, public healthcare outlooks. However, recent medical advances have also extended life expectancy, helping seniors stay longer in the labour market.

Supporters say raising the retirement age could help stabilise the Social Security Fund, the country's largest pension fund with over 2.6 trillion baht in assets. With fewer contributors and more retirees drawing pension funds, the SSF's sustainability has been under threat.