A Study on Converting Lottery Money into Pensions for Thai Informal Workforce

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Pornpen Vora-Sittha
Parichat Klingthong


This paper focuses on the Thai pension system, which has been ranked the lowest among 44 countries surveyed. A significant weakness that needs to be addressed is the provision of pensions for the informal sector workforce in Thailand. The existing government pension schemes, although voluntary, have not yet yielded satisfactory outcomes.

Since many workers in the informal sector choose to invest their money in the lottery instead of contributing to the Government Savings Fund designed for their retirement. This research proposes to establish a voluntary savings program called the "Government Savings Lottery Fund for Retirement." The system allows lottery money to be converted into retirement benefits. The study shows that redirecting expenditure from lottery tickets to long-term savings leads to increased lifetime monthly income, ensuring lasting financial stability without burdening the government.  While substantial contributors receive sufficient pensions, those with minimal contributions can seek membership in the Government Pension Fund or the Social Security Fund for a decent post-retirement life (Section 40).

Nevertheless, this newly created pension system covers at least five aspects: (1) expanding labor protection, (2) raising income for retirees, (3) ensuring long-term financial sustainability,    (4) strengthening the capital market, and (5) not burdening the treasury.

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