Employers reimagine their roles to support employee’s long-term financial wellbeing
Thailand’s transition into an aged society is revealing profound gaps in retirement preparedness. This growing urgency compels employers to step beyond towards becoming long-term partners in their employees’ financial futures, while also reevaluating workforce sustainability and competitiveness.
Aged and at risk: Thailand’s retirement system under pressure
With 17% of the population already over 65 and 24% expected by 2030, super-aged society is no longer a distant demographic trend. Yet, most Thai workers still lack adequate retirement savings according to various studies. Together with rising medical costs and longer life expectancy, the financial outlook for many is uncertain and worrisome.
Retirement benefits from employers as a critical safety net
Employer’s retirement benefits are rapidly becoming essential pillars of financial security. Provident fund, which is the prevalent voluntary defined contribution (DC) scheme jointly contributed to by employers and employees, is now offered by 93% of companies according to WTW’s 2024 Benefit Design Practice Report. Beyond basic provisions, leading employers are enhancing their provident fund with a thoughtful design, prudent governance, and skilled fund manager. The upcoming Employee Welfare Fund (EWF), which is introduced as a mandatory safety net with its effective date has been postponed to October 2026, signals broader government support but provident fund remains more robust and adaptable in terms of benefits and flexibility.
Looking ahead
As retirement looms closer for an aged workforce, more and more employers are aligning short-term and long-term employee benefits. A strong retirement strategy reflects not only responsibility but also strategic foresight. By investing today, companies can promote loyalty, secure their workforce’s future, and reinforce their place as employers of choice in the aging Thailand.
