Aug 1, 2008 Report No：08-09
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.
|Keywords||defined-contribution pension, pension suitability, stochastic forecast, Thailand|