Abstract
Thailand recently reached “aged” society status, signifying that over twenty percent of the population is over sixty. Considering that Thailand has a low literacy rate, a fractured pension system, and no regulations that could provide sufficient income to cover basic needs after retirement, there will be economic repercussions if the situation is not handled soon. The government and financial institutions have been encouraging Thai citizens to prepare retirement plans but lack understanding of the root causes of being unprepared for retirement. The objectives of this qualitative research were to explore the behavior, knowledge, and preparedness towards retirement in governmental and private wageworkers. Moreover, the study aims to identify the pain points of being unprepared for retirement and deliver the optimal solutions and sustainable retirement plans suitable for each segment. This article employed a sample of 46 wageworkers in Khon Kaen, Thailand with ages ranging from 20 to 59 years old. Qualitative semi-structured in-depth interviews and qualitative content analysis were conducted with the respondents asking about their income, expenses, pains, and problems towards saving for retirement, their desired outcome after they retire, and how they would achieve it. The framework used for the in-depth qualitative interview was by utilizing the customer, problem, and solution zoom tool. The research contributions were to facilitate Thai citizens being ready for retirement stages and overcome post-retirement risks sustainably. The results revealed that the sample could be divided into four segments by their characteristics. Two low-income segments share the same traits and behaviors that can prove that financial literacy plays an essential role in retirement readiness. Lower-income wage workers do not have their money put in place to prepare for retirement. Additionally, this article discussed the study’s implications for wageworkers, employers, and the Thai government. This article recommended that Thai citizens should accumulate wealth in various ways, including investment in financial assets and earning additional income from a second job. Employers should provide suitable retirement contribution schemes. The government should launch a policy enabling above-60-year-old seniors to continue working.
Highlights
Since 2005, Thailand has been an “aging” society, signifying that 10% of the population is over 60
We used the life cycle hypothesis combined with information and statistics of the financial literacy, investment, and financial behaviors of Thai wageworkers to find out the pains and problems of our interviewees and their desired outcomes on preparing for retirement
The findings in this research demonstrate that four types of behavior contribute to the preparedness for retirement
Summary
Since 2005, Thailand has been an “aging” society, signifying that 10% of the population is over 60. In 2021, Thailand is expected to reach the 20% mark considered by the global standard as an “aged” society and reach the 30% mark called the “super-aged” society by 2030. With the general retirement age at 60, it leaves more than 20% of the population unemployed. Thailand is losing workers in the 50–60 age group due to early retirement policies (Thailand Development Research Institute Foundation 2019). Thailand’s working-age population is declining more than other developing east Asia and Pacific countries, increasingly consuming the governmental fiscal budget every year to help the elderly (Yoda et al 2021). While some research indicates that most retirees are content with their life, others show that up to one-third of retirees find the transition difficult or suffer a decrease in well-being after retirement (Bonsang and Klein 2012). García (2006)
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