Measures to cope with aged society

In anticipation that Thailand will turn an aged society in the next eight years, the Finance Ministry and related agencies have come up with a number of measures to cope with the growing number of retirees or elderly people.

The aged population in Thailand is anticipated to number 14.4 million or 20 percent of the entire population in the year 2025.

The cabinet recently endorsed a measure to encourage the private sector to hire employees who are over 60 years old by allowing them to deduct twice the amount of actual salaries paid as expenses from their taxable incomes under the condition that the salaries do not exceed 15,000 baht/month per head.

The Ministry of Social Development and Human Security has been assigned by the cabinet to build housing projects for senior citizens or the retirees on state land in Chon Buri, Nakhon Nayok, Chiang Rai and Chiang Mai.

The National Housing Authority, the Government Housing Bank and Community Development Institute were also told to construct projects for the elderly by applying the model of Ban Pracharath programme.

The Government Savings Bank and the Government Housing Bank were allowed to grant soft loans with favorable conditions totaling 4 billion baht to real estate developers to build housing projects for the elderly who can make use of their debt-free land ownerships in exchange for monthly allowances so they can carry on with their lives.

State banks such as the GSB were told to double interest rate for deposits of the elderly and to allow the elderly to use their reverse mortgage as collateral to seek bank loans payable on monthly basis for up to 20 years.

On top of that, children who take good care of their retired parents will have the privilege to get housing loans from state banks at lower interest rates and with interest free during the first 6-12 months.