A Study on Converting Lottery Money into Pensions for Thai Informal Workforce
DOI:
https://doi.org/10.14456/ndj.2024.5Keywords:
Lottery, Pension, Retirement, Informal Workforce, Government Savings Lottery Fund for RetirementAbstract
The Mercer CFA Institute Global Pension Index shows that Thailand has hadthe world's worst pension system for several years. This paper addresses the weaknesses of the Thai pension system, particularly in providing for the informal sector workforce.Despite existing government pension schemes being voluntary, their effectivenessis limited, with a significant portion of funds being allocated towards lottery tickets.As a solution, the paper proposes establishing a voluntary savings program namedthe “Government Savings Lottery Fund for Retirement.” This program would convertlottery money into retirement benefits, with pension levels determined by factorssuch as the amount invested, duration of participation, and fund management returns. The proposed system mirrors the National Savings Fund (NSF) in calculating pensions and offers individual capital management accounts. Payments would commence at age 60 as lifetime monthly payments. This proposed system aims to expand labor protection, increase retirement income, ensure financial sustainability, strengthen the capital market, and relieve pressure on government finances
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