Second Chance for the Elderly: Redepemtion Programs Considered for Older Offenders
In the heart of Southeast Asia, Thailand braces for a looming demographic crisis as its growing elderly population outpaces the government's effort to support them. With one-fifth of Thais reaching the age of 60, experts warn that the country faces an irreversible crunch if appropriate measures aren't taken to secure the welfare of its senior citizens.
According to Nonarit Bisonyabut, a senior research fellow at the Thailand Development and Research Institute, the elderly population will account for 27% of the total population in the next decade. Despite the alarming statistics, the Thai government seems to be falling short in addressing the needs of the growing elderly population.
Familial support is often relied upon in Thailand after retirement. However, the nation's declining birth rates and an increased life expectancy are leading to a situation where a child might have to juggle caring for their parents and grandparents, putting additional strain on familial resources. Moreover, the number of elderly individuals without children or family members to care for them is on the rise, further exacerbating the problem.
State welfare systems may struggle to keep pace with the growing demand, as evidenced by the shrinking social security fund pension scheme and the enormous budget required for old-age allowances. Given the current trajectory, a sufficient safety net for the elderly appears to be an unattainable luxury.
"We're growing older before we are rich," remarks Mr. Nonarit.
In contrast to developed nations where excellence in healthcare allows individuals to work until the age of 65, Thailand's employment typically ends at 60. To make matters worse, many in Thailand retire as early as 50 or 55 due to policies enabling pension and benefit collections at these ages.
To deal with this issue, the Ministry of Social Development and Human Security has initiated a program to encourage private companies to hire senior citizens. Although 200,000 older Thai individuals have expressed interest in re-entering the workforce, only around 6,000 opportunities are currently available.
"We don't need to worry about workers in the public sector, which has a retirement extension scheme, and those who have enough to go by in retirement," asserted Mr. Nonarit. "We need to worry about private sector employees or informal workers who are forced by various factors to stop working."
Employers have been reluctant to support those who wish to continue working, often regarding their employees as disposable rather than long-term resources. Highlighting a potential solution, Mr. Nonarit praised Singapore's "re-employment" policy, where businesses are encouraged to retain elderly employees until at least 60 or 65 years old or offer them alternate roles with reduced pay.
Conflicting viewpoints abound regarding whether elderly workers should be employed hourly to suit their abilities. Critics argue that such a setup could discourage employers from offering full-time jobs accompanied by benefits and severance payments.
"Without stringent legal requirements, none of this is likely to happen. It's high time to make businesses shoulder long-term responsibility for their employees instead of treating them as interchangeable machines. Thai businesses have reveled in this system for far too long," he said.
Tanit Sorat, vice chairman of the Employers' Confederation of Thai Trade and Industry, insists flexible employment terms and tax incentives are necessary to spur the hiring of elderly individuals. Apparently, a proposal has been proposed to the government, although it hasn't seen the light of day.
Under the suggested plan, the retirement age in the private sector would be set at 65, with provisions for part-time work up to the age of 70, focusing on eliminating concerns surrounding severance payments.
Mr. Tanit acknowledges that retirees in the government sector are generally disinclined to return to work. However, a study indicates that those who secure lump sums often deplete their funds within just three years.
"People aged 60-65 are not considered senior citizens nowadays. They are still in good health. But this issue is complex and necessitates extensive legal adjustments," he explains.
Thailand faces a severe labor shortage and relies heavily on foreign workers, primarily filling low-skilled positions. Nevertheless, there is a pressing need for semi-skilled Thai workers, according to Mr. Tanit.
He recommended implementing legislation requiring businesses to hire a specified number of senior workers, similar to existing regulations for hiring individuals with disabilities.
"We're lacking accountants, clerks, salespeople, tutors, legal assistants, even tour guides. They don't require physical strength, but rather experience and intellectual firepower," he said.
Mr. Tanit notes that many companies which do employ senior workers by the hour are actually violating existing labor laws. He stresses the importance of implementing regulations specific to the employment of the elderly and considers tax incentives for businesses offering employment to the elderly.
Despite the challenges, there is a growing movement of companies hiring retirees to address skills gaps, particularly in sectors requiring specific expertise or decades of experience. The global recruitment firm Robert Walters published a report on Monday announcing an upsurge in demand for retirees in the Thai labor market due to their expertise, low expenses, and preference for part-time or flexible jobs.
The Ministry of Labour has been promoting senior employment since 2022, designating housekeeping and guarding private property among the in-demand jobs for elderly employees. A 2022 survey also found that only 15% of seniors interviewed were interested in full-time employment, while 76% preferred flexible work arrangements.
In a nod towards post-retirement employment, the Pheu Thai Party has voiced support for calls to empower the elderly to continue contributing to the workforce and economy. Krissada Tantherdthit, a secretary to the tourism minister and member of Pheu Thai's economic team, emphasized the need for data collection to identify suitable roles for retirees and create suitable job opportunities.
Sanga Ruangwattanakul, president of the Khao San Road Business Association, backs the policy, advocating substantial incentives from the government to motivate employers to hire seniors.
"Many seniors still have strong capabilities. However, if the government wants to make it happen, they need to give employers meaningful incentives like tax breaks, subsidies," he emphasized.
- The elderly population in Thailand is projected to account for 27% of the total population in the next decade, according to Nonarit Bisonyabut, a senior research fellow at the Thailand Development and Research Institute.
- Expert warnings about the country's looming demographic crisis come as one-fifth of Thais have reached the age of 60.
- Singapore's "re-employment" policy, which encourages businesses to retain elderly employees until at least 60 or 65 years old, is highlighted as a potential solution by Mr. Nonarit.
- Tanit Sorat, vice chairman of the Employers' Confederation of Thai Trade and Industry, proposes the retirement age in the private sector be set at 65, with provisions for part-time work up to the age of 70, as part of a suggested plan to address the issue of elderly employment.
- Krissada Tantherdthit, a secretary to the tourism minister and member of Pheu Thai's economic team, emphasizes the need for data collection to identify suitable roles for retirees and create suitable job opportunities.
- Sanga Ruangwattanakul, president of the Khao San Road Business Association, advocates substantial incentives from the government, like tax breaks and subsidies, to motivate employers to hire seniors.
