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Population Ageing and Policy Responses in Thailand Professor Worawet Suwanrada, Ph.D. Dean, Faculty of Economics, Chulalongkorn University Public Symposium in Seoul, Korea Sharing Responses on the Ground – Aging Society and the Surrounding Challenges in Asia Diamond Hall 2F, Koreana Hotel February 28, 2017 1

Population Ageing and Policy Responses in Thailand€¦ · Outline of Presentation. 3 1.Population Ageing in Thailand Outline of Presentation. 4.6 4.9 5.5 7.4 9.5 13.2 1960 1970 1980

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Page 1: Population Ageing and Policy Responses in Thailand€¦ · Outline of Presentation. 3 1.Population Ageing in Thailand Outline of Presentation. 4.6 4.9 5.5 7.4 9.5 13.2 1960 1970 1980

Population Ageing and Policy Responses in Thailand

Professor Worawet Suwanrada, Ph.D.Dean, Faculty of Economics, Chulalongkorn University

Public Symposium in Seoul, Korea

Sharing Responses on the Ground – Aging Society and the Surrounding Challenges in Asia

Diamond Hall 2F, Koreana Hotel

February 28, 2017 1

Page 2: Population Ageing and Policy Responses in Thailand€¦ · Outline of Presentation. 3 1.Population Ageing in Thailand Outline of Presentation. 4.6 4.9 5.5 7.4 9.5 13.2 1960 1970 1980

2

1. Population Ageing in Thailand2. Situation of Older Population in Thailand

3. Policy Responses4. Future Challenges

Outline of Presentation

Page 3: Population Ageing and Policy Responses in Thailand€¦ · Outline of Presentation. 3 1.Population Ageing in Thailand Outline of Presentation. 4.6 4.9 5.5 7.4 9.5 13.2 1960 1970 1980

3

1.Population Ageing in Thailand

Outline of Presentation

Page 4: Population Ageing and Policy Responses in Thailand€¦ · Outline of Presentation. 3 1.Population Ageing in Thailand Outline of Presentation. 4.6 4.9 5.5 7.4 9.5 13.2 1960 1970 1980

4.6 4.95.5

7.4

9.5

13.2

1960 1970 1980 1990 2000 2010

Source: The National Population and Housing Census, National Statistical Office, quoted in TGRI (2012), The Situation of Thai Elderly 2011.

Population Aging in Thailand Increase of proportion of older population (aged 60+) through last 50 years.

4

2015

16.5%

10.78 millions

Page 5: Population Ageing and Policy Responses in Thailand€¦ · Outline of Presentation. 3 1.Population Ageing in Thailand Outline of Presentation. 4.6 4.9 5.5 7.4 9.5 13.2 1960 1970 1980

Population Aging in ThailandThe proportion of the older population aged 60 and over will increase from now 13% (9%)

to 32% (25%) in next three decades. (unit: 1,000)

Source: National Economic and Social Development Board , Population Projection in Thailand: 2010-20405

12,642 11,792 11,082 10,506 9,801 8,996 8,169

42,739 42,961 42,29340,740

38,79636,992

35,175

8,408 10,350 12,622 15,12617,579

19,36020,519

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040

0-14 15-59 60+

15.9%

66.0%

18.1%12.8%

55.1%

32.1%

Page 6: Population Ageing and Policy Responses in Thailand€¦ · Outline of Presentation. 3 1.Population Ageing in Thailand Outline of Presentation. 4.6 4.9 5.5 7.4 9.5 13.2 1960 1970 1980

Population Aging in ThailandThe number and proportion of the oldest old population (80 and above)

will be increasing. (unit: 1,000)

Source: National Economic and Social Development Board (NESDB), Population Projection in Thailand: 2010-2040.

Thai older persons live longer.

6

4,6305,868

7,2558,399

9,260 9,335 8,958

2,708

3,061

3,677

4,732

5,8976,885 7,639

1,070

1,421

1,690

1,995

2,422

3,1403,922

0

5,000

10,000

15,000

20,000

25,000

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040

60-69 70-79 80+

56.7%

29.6%

13.7%

19.1%

37.2%

43.7%

Page 7: Population Ageing and Policy Responses in Thailand€¦ · Outline of Presentation. 3 1.Population Ageing in Thailand Outline of Presentation. 4.6 4.9 5.5 7.4 9.5 13.2 1960 1970 1980

Population Aging in Thailand Continuous Decrease of Potential Support Ratio (Number of the Working

Population per One Elderly) from 5 in 2010 to smaller than 2 in 2040

Data Source: National Economic and Social Development Board , Population Projection in Thailand: 2010-2040, calculated by the author.7

5.1

4.24.0

3.4

2.7

2.21.9

1.7

0.0

1.0

2.0

3.0

4.0

5.0

6.0

2010 2015 2016 2020 2025 2030 2035 2040

Page 8: Population Ageing and Policy Responses in Thailand€¦ · Outline of Presentation. 3 1.Population Ageing in Thailand Outline of Presentation. 4.6 4.9 5.5 7.4 9.5 13.2 1960 1970 1980

Population Ageing in Thailand:Fertility Decline (TFR) after 1970s. Thai society has fewer children.

Source: TGRI (2012), The Situation of Thai Elderly 2011 and National Economic and Social Development Board, Population Projection in Thailand: 2010-20408

0

0.5

1

1.5

2

2.5

3

3.5

4

4.5

5

1974-19761985-1986

1995-19962005-2006

20112021

4.9

2.7

2

1.71.6

1.5

Page 9: Population Ageing and Policy Responses in Thailand€¦ · Outline of Presentation. 3 1.Population Ageing in Thailand Outline of Presentation. 4.6 4.9 5.5 7.4 9.5 13.2 1960 1970 1980

92.Situation of Older Population in Thailand

Outline of Presentation

Page 10: Population Ageing and Policy Responses in Thailand€¦ · Outline of Presentation. 3 1.Population Ageing in Thailand Outline of Presentation. 4.6 4.9 5.5 7.4 9.5 13.2 1960 1970 1980

Decrease of Mean Number of Living Children by Age of Older Persons

10

2.12.4

2.9

3.3

3.8

4.34.6

2.02.2

2.5

2.9

3.5

3.9

4.4

0

0.5

1

1.5

2

2.5

3

3.5

4

4.5

5

50-54 55-59 60-64 65-69 70-74 75-79 80 up

2011 Survey 2014 Survey

Source: Knodel, Prachuabmoh and Chayovan (2013)’s “The Changing Well-being of Thai Elderly: An update from the 2011 Survey of Older Persons in Thailand”, College of Population Studies, Chulalongkorn University and HelpAge International. For 2014 from John Knodel, Bussarawan Teerawichitchainan, Vipan Prachuabmoh and Wiraporn Pothisiri (2015), The Situation of Thailand’s Older Population: An Update based on the 2014 Survey of Older Persons in Thailand, HelpAge International, Thailand.

Page 11: Population Ageing and Policy Responses in Thailand€¦ · Outline of Presentation. 3 1.Population Ageing in Thailand Outline of Presentation. 4.6 4.9 5.5 7.4 9.5 13.2 1960 1970 1980

11

Location of nearest child lives alone lives with spouse onlyadjacent 29.4 25.5

same village or municipality 16.3 18.8

same province 15.4 17.6outside province 21.5 30.1has no children 17.5 8.0

Total 100.0 100.0

distribution of with whom the live %alone 8.8

spouse only 19.0with at least one children 54.7

other arrangement 17.5total 100

% living with or next door to a child 65.1

% living with a married child or child in law 36.9

6.3

8.4 8.6 8.8

15.9 16.317.6

19.0

0

2

4

6

8

10

12

14

16

18

20

2002 2007 2011 2015

lives alone lives with spouse only

Living Arrangements of Older Persons (% older persons aged 60 years and older)

Source: Thailand Gerontology Research Institute’s Situation of Elderly in Thailand 2014.

Source: John Knodel, Bussarawan Teerawichitchainan, Vipan Prachuabmoh and Wiraporn Pothisiri (2015), The Situation of Thailand’s Older Population: An Update based on the 2014 Survey of Older Persons in Thailand, HelpAge International, Thailand.

Page 12: Population Ageing and Policy Responses in Thailand€¦ · Outline of Presentation. 3 1.Population Ageing in Thailand Outline of Presentation. 4.6 4.9 5.5 7.4 9.5 13.2 1960 1970 1980

Old-age Financial Security: Sources and Main Source of Income of Older Population in Thailand (%)

Income SourcePercent receiving any income

from the following sourceMain source

of current income1994 2002 2007 2011 2014 1944 2007 2011 2014

work 38.0 37.7 37.8 42.7 38.8 31.5 28.9 35.1 33.8pension 4.1 4.3 5.4 7.5 6.3 4.0 4.4 6.0 4.8old age allowance 0.5 3.0 24.4 81.4 84.9 0.0 2.8 11.4 14.9interest, saving, rent 17.1 18.0 31.7 35.7 n.a. 1.7 2.9 2.6 3.8spouse 21.4 17.4 23.3 21.4 25.2 4.6 6.1 3.1 4.3children 84.5 77.2 82.7 78.5 78.9 54.1 52.3 40.1 36.8relatives 11.4 6.9 11.0 8.9 10.0 2.4 2.3 1.5 1.4other 8.8 2.6 1.5 2.5 1.6 1.7 0.5 0.2 0.2Total - - - - - 100.0 100.0 100.0 100.00

Source: For 1994, 2002, 2007 and 2011 from Table 4.2 in Knodel, Prachuabmoh and Chayovan (2013)’s “The Changing Well-being of Thai Elderly: An update from the 2011 Survey of Older Persons in Thailand”, College of Population Studies, Chulalongkorn University and HelpAge International. For 2014 from John Knodel, Bussarawan Teerawichitchainan, Vipan Prachuabmoh and Wiraporn Pothisiri (2015), The Situation of Thailand’s Older Population: An Update based on the 2014 Survey of Older Persons in Thailand, HelpAge International, Thailand.

Page 13: Population Ageing and Policy Responses in Thailand€¦ · Outline of Presentation. 3 1.Population Ageing in Thailand Outline of Presentation. 4.6 4.9 5.5 7.4 9.5 13.2 1960 1970 1980

Year of

Survey

Should we prepare

ourselves for old-age life

or not?

The most

important

issue of

preparedness

Adequate Saving/Assets

Accumulation for Old-age Life

Ever thought Never

thoughtShould Should

not

Not sure Prepared Not Yet

2007 91.4 3.7 4.9 Finance 98.8

Health 96.9

Housing 96.5

57.6 32.3 10.1

2011 87.1 6.8 6.8 Finance 98.4

Health 97.3

Housing 97.1

53.8 33.9 12.3

Source: National Survey on Opinions and Attitudes of People on Older Persons in 2007 and 2011 by National Statistical Office

Future Generation’s Preparedness for Old-age Financial Security

13

Page 14: Population Ageing and Policy Responses in Thailand€¦ · Outline of Presentation. 3 1.Population Ageing in Thailand Outline of Presentation. 4.6 4.9 5.5 7.4 9.5 13.2 1960 1970 1980

Ability of Daily Livings of

Older Persons

14

30.3

18 17.516.1

35.5

5.2 4.4 4.1 3.6 3.2 3.1 3 2.9

7.3

26.5

9.5 9.3

28.1

40.9

%with functional difficulties

%with ADL difficulties %with IADL difficulties

Source: John Knodel, Bussarawan Teerawichitchainan, Vipan Prachuabmoh and Wiraporn Pothisiri (2015), The Situation of Thailand’s Older Population: An Update based on the 2014 Survey of Older Persons in Thailand, HelpAge International, Thailand.

Page 15: Population Ageing and Policy Responses in Thailand€¦ · Outline of Presentation. 3 1.Population Ageing in Thailand Outline of Presentation. 4.6 4.9 5.5 7.4 9.5 13.2 1960 1970 1980

Main providers of assistance with daily living activities (% of persons 60 and older who have assistance for daily activities)

15

spouse29%

son13%daughter

42%

son/daughter in law6%

grandchild3%

sibling5%

paid/professional carer1%

servant/employee1%

other0%

Source: John Knodel, Bussarawan Teerawichitchainan, Vipan Prachuabmoh and Wiraporn Pothisiri (2015), The Situation of Thailand’s Older Population: An Update based on the 2014 Survey of Older Persons in Thailand, HelpAge International, Thailand.

Page 16: Population Ageing and Policy Responses in Thailand€¦ · Outline of Presentation. 3 1.Population Ageing in Thailand Outline of Presentation. 4.6 4.9 5.5 7.4 9.5 13.2 1960 1970 1980

16

3.Policy Responses

Outline of Presentation

Page 17: Population Ageing and Policy Responses in Thailand€¦ · Outline of Presentation. 3 1.Population Ageing in Thailand Outline of Presentation. 4.6 4.9 5.5 7.4 9.5 13.2 1960 1970 1980

Policy Responses

17

2004 20162006 20092003 2010 20112002 2015

Start of the 2nd National Plan on the Elderly (2002-2021)

The Act on the Elderly B.E. 2546 (2003 A.D.)

Establishment of Elderly Fund

Proposal for System Reform towards Aging Society by

National Reform Assembly

Start of Area-based Health Fund Scheme

Start of Area-based Health Fund Scheme

The 1st Evaluation (2002-2006) of the 2nd NP on the Elderly

Universalization of Old-age Allowance

National Saving Fund Act B.E. 2554

Cabinet Resolution on Ageing Society

2014

The 3rd Evaluation (2012-2016)

The 2nd Evaluation (2007-2011)

- Establishment of National Pension Fund (Provident Fund)

- Establishment of National Pension Committee

- Subsidization to Private Firms for Older Persons’ Employment

- Public Housing for Older Persons

Page 18: Population Ageing and Policy Responses in Thailand€¦ · Outline of Presentation. 3 1.Population Ageing in Thailand Outline of Presentation. 4.6 4.9 5.5 7.4 9.5 13.2 1960 1970 1980

The 2nd National Plan on the Elderly (2002-2021)

Strategy (No. of Index) Accomplishment (%)Overall 51.0%

Strategy on readiness preparation of the people for their quality ageing

28.6%

Strategy on the elderly promotion and development

53.3%

Strategy on the social safeguards for the elderly

33.3%

Strategy on management of developing the national comprehensive system for undertakings and developing the personnel for the elderly involving missions

85.7%

Strategy on processing, upgrading and disseminating knowledge on the elderly and the national monitoring of implementation of NPE

100.0%

Page 19: Population Ageing and Policy Responses in Thailand€¦ · Outline of Presentation. 3 1.Population Ageing in Thailand Outline of Presentation. 4.6 4.9 5.5 7.4 9.5 13.2 1960 1970 1980

Public Pension Schemes

Mixed system between occupational (or labor status)-based pension system (for formal sector’s working population, says employees) and Old Age Allowance System Universal coverage by Old Age Allowance System for the elderly who are not pensioners under

occupational-based pension system.

Mixed system between non-contributory schemes and contributory schemes

Between DB and DC

Fragmented system, managed by many governmental organization

No governmental function to be responsible for entire picture of all public pension schemes.

Page 20: Population Ageing and Policy Responses in Thailand€¦ · Outline of Presentation. 3 1.Population Ageing in Thailand Outline of Presentation. 4.6 4.9 5.5 7.4 9.5 13.2 1960 1970 1980

GovernmentPension

GovernmentPension

FundLocal

Government Pension

Fund

Public Enterprises

Pension Schemes

Social Security

Fund

Old-age Allowance System

Formal Sector Working Population (1/3 of working pop)

Informal Sector Working Population and Non Labor Force Population (2/3 of working pop)

Entire Picture of Current Public Pension Schemes in Thailand

National Saving Fund

Provident Fund

20

Page 21: Population Ageing and Policy Responses in Thailand€¦ · Outline of Presentation. 3 1.Population Ageing in Thailand Outline of Presentation. 4.6 4.9 5.5 7.4 9.5 13.2 1960 1970 1980

Unprivileged Older Person/Household (Low-income)

Medium-income Older Person/Household

High-income Older Persons/Household

Central Government’s Care Facilities/Shelters

Local Authorities’ Care Facilities/Shelters

Non-profits Organizations’ Care Facilities/Shelters

Institutional Care by Private Care Providers

Private Home Helpers

Family Care

Current Picture of Elderly Care RegimeHow to construct proper elderly care system to support medium-income older persons?

21

Community-based Integrated Older

Persons’ Long Term Care System

Page 22: Population Ageing and Policy Responses in Thailand€¦ · Outline of Presentation. 3 1.Population Ageing in Thailand Outline of Presentation. 4.6 4.9 5.5 7.4 9.5 13.2 1960 1970 1980

Community-based Integrated Older Persons’ Long Term Care System

22

要介護高齢者

(在宅)

Visit, Basic ADL Care

家庭訪問 会話

情報伝播 モラルサポー

健康診断 血圧測定リハビリテーション

健康栄養相談

訓練

報酬

負担金

訓練

予算

補助金

補助金

補助金

補助金

家庭訪問

生活健康相談

社会参加支援

負担金

Page 23: Population Ageing and Policy Responses in Thailand€¦ · Outline of Presentation. 3 1.Population Ageing in Thailand Outline of Presentation. 4.6 4.9 5.5 7.4 9.5 13.2 1960 1970 1980

Sub-district Health Fund: started in the beginning of 2006, strengthened 2009, expand to whole country in 2011

TambonHealth Fund

National Health

Security Office

TambonAdministrative Organization,

Municipality

Community

• To promote community health• To promote well-being of people and

community based on the cooperation among citizens, local authorities and public health authorities

• To decentralize authority to local authorities

under the civic participation and academic support from other organizations.

• Community Health Information, Strategy Map, Community Health Plan

• Community care for the elderly, the disability, the chronic patients

• Preventive care: diabetes, high blood pressure, TB, AIDS

• Health behavior adjustment• Cooperation with other relating heath organizations

for provision of community health care services

Page 24: Population Ageing and Policy Responses in Thailand€¦ · Outline of Presentation. 3 1.Population Ageing in Thailand Outline of Presentation. 4.6 4.9 5.5 7.4 9.5 13.2 1960 1970 1980

Retirement Age in Thailand

• Government Officials: 60 (= pensionable age)o Except for some occupations extended to 65-70

o Professional: medical doctor, dentist, veterinarian,

o fine artist, traditional dancer, traditional musician, traditional singer

o judiciary, judge (until 70)

o professor (65)

• Private Sector: No mandatory retirement age, normally 55-60o Pensionable age of social security fund’s old-age benefits = 55+

Page 25: Population Ageing and Policy Responses in Thailand€¦ · Outline of Presentation. 3 1.Population Ageing in Thailand Outline of Presentation. 4.6 4.9 5.5 7.4 9.5 13.2 1960 1970 1980

Proposal from National Reform AssemblyFebruary 2015

ECON

• pension reform

• economic reform for vitality (especially, labor market)

HEALTH• promoting strengthening community-based long term care system, including in urban areas

ENVIRONMENT

• realizing safe living environment at home and constructing age-friendly communities, promoting social housing and enabling ageing business and industries

SOCIAL

• promoting preparedness of and empowering individual, family, community, public and private sectors

• increasing older persons’ value

Page 26: Population Ageing and Policy Responses in Thailand€¦ · Outline of Presentation. 3 1.Population Ageing in Thailand Outline of Presentation. 4.6 4.9 5.5 7.4 9.5 13.2 1960 1970 1980

Strategic Plan for Promoting Older Population’s Works

4 Pillars in the Strategic Plan to Cope with Older Workers’ Employment proposed by the Ministry of Labor to the National Older Persons

Commission (NOPC)

26

Promotion of Older Persons’ Employment

Distribution Jobs to Households

and Communities

Extension of Official

Retirement Age of Government

Officials

Promotion of Continuing

Employment for Private Sector’s

Employees

Page 27: Population Ageing and Policy Responses in Thailand€¦ · Outline of Presentation. 3 1.Population Ageing in Thailand Outline of Presentation. 4.6 4.9 5.5 7.4 9.5 13.2 1960 1970 1980

Cabinet Resolution towards Ageing Society@ November 8, 2016

• Subsidization to Older Workers Employment• Employed Older Persons’ Salary and Wages (limits 15,000 THB/month) as

Corporate Tax Income Exemption (not more than 10% of total employees)

27

• Senior Complex• Ministry of Social Development and Human Security

• National Housing Authority, Government Housing Bank and Community Organizations Development Institute

• Reverse Mortgage • Integration of Public Pension Schemes• National Pension Committee• Establishment of National Provident Fund

Page 28: Population Ageing and Policy Responses in Thailand€¦ · Outline of Presentation. 3 1.Population Ageing in Thailand Outline of Presentation. 4.6 4.9 5.5 7.4 9.5 13.2 1960 1970 1980

28

4.Future Challenges

Outline of Presentation

Page 29: Population Ageing and Policy Responses in Thailand€¦ · Outline of Presentation. 3 1.Population Ageing in Thailand Outline of Presentation. 4.6 4.9 5.5 7.4 9.5 13.2 1960 1970 1980

Future Challenges: How to align all related plans together?

Strategy on readiness

preparation of the people for their quality

ageing

Strategy the elderly

promotion and development

Strategy on the social safeguards

for the elderly

Strategy on management of developing the

national comprehensive system for undertakings

and developing the personnel for the elderly

involving missions

Strategy on processing, upgrading

and disseminating knowledge on the

elderly and the national monitoring

of implementation of NPE

Increasing Thai population’s competency to promote

growth adequately

Strengthening Economic Security and Social Protection

for Thai population

Promoting well-being of Thai family

(DRAFT) POPULATION PLAN IN 20 YEARS LONG-TERM

DEVELOPMENT (2015-2034)

The 2nd National Plan on the Elderly (2002-2021)

29

Page 30: Population Ageing and Policy Responses in Thailand€¦ · Outline of Presentation. 3 1.Population Ageing in Thailand Outline of Presentation. 4.6 4.9 5.5 7.4 9.5 13.2 1960 1970 1980

Future Challenges

• Limitations of Family and Family Support Policy

•Roles of Local Authorities in Older Person Affairs

•Roles of Private Sector in the Context of Aging Society• Employee Welfare

• Promotion of Aging Marketplace (Industry) to enhance Economic Vitality

• Financing Aging Society, especially Pension and Long Term Care Issues

30

Page 31: Population Ageing and Policy Responses in Thailand€¦ · Outline of Presentation. 3 1.Population Ageing in Thailand Outline of Presentation. 4.6 4.9 5.5 7.4 9.5 13.2 1960 1970 1980

Thank you for your attention.

Contact: [email protected]

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