Thailand introduces retirement lottery to boost elderly savings
Parliament has given unanimous approval in principle for a bill to amend the National Savings Fund (NSF) Act 2011, setting the stage for a retirement lottery initiative. This scheme aims to bolster retirement savings by permitting the NSF to issue lottery tickets, a measure widely supported by MPs as a way to enhance financial security for the elderly.
The proposal was brought forward during a parliamentary session yesterday, April 2, overseen by Deputy House Speaker Pichet Chuamuangpan.
Deputy Finance Minister Paopoom Rojanasakul emphasised the urgency of the amendment due to Thailand’s rapidly ageing population, which is expanding more swiftly than in neighbouring countries. He noted that many older Thais lack sufficient savings, contributing to financial instability in their senior years.
Paopoom also pointed out the popularity of gambling, particularly lottery ticket purchases, among Thais. Unfortunately, those engaging in underground lotteries often incur losses without benefiting in the long term.
To counter this, the government has proposed a savings scheme modelled as a retirement lottery, aiming to channel gambling tendencies into a productive savings mechanism.
According to the proposed plan, citizens would have the option to buy NSF lottery tickets via a mobile application for 50 baht each, with draws conducted every Friday in collaboration with the Government Lottery Office (GLO).
Winners would receive cash prizes through automatic bank transfer, while non-winning participants would accumulate savings. Upon reaching 60 years of age, participants would receive their initial investment along with any returns.
Paopoom stated that the government intends to allocate 700 million baht annually for lottery prizes. The scheme is expected to generate 13 billion baht in participant savings annually over the next 10 years.
During discussions, there were suggestions to enhance the scheme’s flexibility, such as allowing participants early access to savings for necessary expenses like medical bills.
Some MPs also proposed increasing prize amounts or the number of winners to enhance the lottery’s appeal. Concerns were also expressed about ensuring a guaranteed minimum return on investments, reported Bangkok Post.
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