Thailand Consumer Council appeals for higher elderly pension

In a recent online forum, the Thailand Consumers Council (TCC) voiced a call to the new government the reconsideration a policy that restricts certain elderly individuals from obtaining monthly grants, advocating instead for the reinstatement and enhancement of the universal pension scheme to pay 3,000 baht each month.

Nimit Tienudom, the vice-chair of TCC and the representative of the People’s Network for Welfare State, made this appeal. He shared his perspective about how monthly allowances for senior citizens, which were first initiated in 2009, are in urgent need of updates and shouldn’t face degradation.

“Every senior citizen should have the right to a monthly allowance from the state. The basic pension ought to ensure the elderly have sufficient funds to cater to their daily needs.

“The ideal monthly allowance is 3,000 baht as this rate would position the elderly slightly above the poverty line, which has been defined by the National Economic and Social Development Council as 2,800 baht per person in a month.”

The most recent regulation, announced via the Royal Gazette and initiated on August 12, exclusively considers those senior citizens with no or little income to allocate for living expenses as eligible for the monthly stipend from the government. However, the change solely impacts individuals turning 60 after the policy took effect. Those already receiving allowances ranging from 600 to 1,000 baht, according to their age, remain unaffected by this new rule.

Assistant Professor Weerasak Putthasri, deputy secretary-general of the National Health Commission, echoed Nimit’s statements. Weerasak alluded to the health assembly’s stance in endorsing a secure, basic income for the elderly as a key national agenda, reported Bangkok Post.

“Monthly allowances for our advanced age population should be received as a basic right without the necessity of proving financial distress.”

On the same note, Katikar Tipayalai, a lecturer from Chulalongkorn University’s Faculty of Economics, shared findings from a recent study highlighting that over 90% of Thailand’s elderly population lack personal savings and among those who do have savings, only 9% have sufficient funds to sustain their expenses for at least five years.

Elderly allowances are currently provided to approximately 11 million Thai citizens aged over 60, costing approximately 88 billion baht each year. If the allowance rate is boosted to 3,000 baht per month, the annual budget would be extended to 400 billion baht. Katikar argued that, despite the number seeming high, it is a good investment in Thailand’s economy.

“The 400 billion baht is not an exaggerated figure considering this money will stimulate the economy through the purchasing of goods.”

It is thought the government could yield related taxes from a potential 600 billion baht in spending. Katikar suggested tax reforms and an increment in VAT for luxury goods and services finance the pension fund, anticipating that for every 1% rise in VAT about 70-100 billion baht would be generated for the elderly pension scheme.

Saree Aongsomwang, secretary-general of the Foundation for Consumers, supports the notion and implores the new government to revise the regulation and issue universal pension payments to the elderly.

“Numerous political parties made promises to upgrade the pension scheme to win votes. Upon the formation of the new government, we will make it our priority to address this concern as every advanced-age citizen should reap the benefits of pensions.”