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The Impact of the National Pension Fund on the Suitability of Elderly Pensions in Thailand

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  • Wade D. Pfau

    (National Graduate Institute for Policy Studies)

  • Vararat Atisophon

    (National Graduate Institute for Policy Studies)

Abstract

This study combines a traditional hypothetical worker approach with the techniques of stochastic forecasting in order to provide a better sense about the suitability of the pension system for formal sector private workers in Thailand. With regard to the proposed defined-contribution pension, we find that workers with a 40 year career can only expect a median replacement rate of about 13 to 14 percent of their final five years of income. Most of the pension benefits will still likely come from the unsustainable defined-benefit pension system and further reforms will be needed to maintain suitable pensions.

Suggested Citation

  • Wade D. Pfau & Vararat Atisophon, 2008. "The Impact of the National Pension Fund on the Suitability of Elderly Pensions in Thailand," GRIPS Discussion Papers 08-09, National Graduate Institute for Policy Studies.
    • Handle: RePEc:ngi:dpaper:08-09
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    References listed on IDEAS

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    1. Ronald D. Lee & Michael W. Anderson & Shripad Tuljapurkar, 2003. "Stochastic Forecasts of the Social Security Trust Fund," Working Papers wp043, University of Michigan, Michigan Retirement Research Center.
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    6. Pai, Yasue, 2006. "Comparing Individual Retirement Accounts in Asia : Singapore, Thailand, Hong Kong and PRC (China)," Social Protection Discussion Papers and Notes 37432, The World Bank.
    7. Ronald Lee & Shripad Tuljapurkar, 1998. "Stochastic Forecasts for Social Security," NBER Chapters, in: Frontiers in the Economics of Aging, pages 393-428, National Bureau of Economic Research, Inc.
    8. Robert Holzmann & Richard Hinz, 2005. "Old Age Income Support in the 21st century: An International Perspective on Pension Systems and Reform," World Bank Publications - Books, The World Bank Group, number 7336.
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    Cited by:

    1. Huang, Xianguo & Yoshino, Naoyuki, 2015. "Impacts of Universal Health Coverage: A Micro-founded Macroeconomic Perspective," ADBI Working Papers 533, Asian Development Bank Institute.
    2. Huang, Xianguo & Yoshino, Naoyuki, 2016. "Impacts of Universal Health Coverage: Financing, Income Inequality, and Social Welfare," ADBI Working Papers 617, Asian Development Bank Institute.

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    More about this item

    Keywords

    defined-contribution pension; pension suitability; stochastic forecast; Thailand;
    All these keywords.

    JEL classification:

    • H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions

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