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Impact of the National Pension Fund on the Suitability of Elderly Pensions in Thailand

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  • Wade D. Pfau
  • Vararat Atisophon

Abstract

This study combines a traditional hypothetical worker approach with the techniques of stochastic forecasting 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 approximately 13–14 percent of their final 5 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.

Suggested Citation

  • Wade D. Pfau & Vararat Atisophon, 2009. "Impact of the National Pension Fund on the Suitability of Elderly Pensions in Thailand," Asian Economic Journal, East Asian Economic Association, vol. 23(1), pages 41-63, March.
    • Handle: RePEc:bla:asiaec:v:23:y:2009:i:1:p:41-63
    DOI: 10.1111/j.1467-8381.2009.02003.x
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    References listed on IDEAS

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    Cited by:

    1. Xianguo Huang & Naoyuki Yoshino, 2015. "Impacts of Universal Health Coverage: A Micro-founded Macroeconomic Perspective," ADBI Working Papers 533, Asian Development Bank Institute.
    2. Xianguo Huang & Naoyuki Yoshino, 2016. "Impacts of Universal Health Coverage: Financing, Income Inequality, and Social Welfare," ADBI Working Papers 617, Asian Development Bank Institute.

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    JEL classification:

    • H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions

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