This report provides an assessment of the coverage, adequacy, financial sustainability and policy consistency of the Thai pension system. Its aim is to provide analysis and recommendations that can contribute to ongoing national policy discussion on pension policy and input into an overarching Social Protection Diagnostic Review (SPDR) that the United Nations (UN) is jointly carrying out with the Government of Thailand. It will be followed by an actuarial valuation that will provide updated projections of the Social Security Office (SSO) fund.

While the Thai pension system has made substantial strides in terms of coverage, it confronts significant issues in terms of adequacy, financial sustainability and policy consistency. A key underlying issue is the architecture of the pension system and the fragmentation of pension schemes across different categories of workers. This architecture does not reflect or accommodate the mobility and dynamism of the Thai labour market and the high levels of non-standard work and self-employment, yet it has a direct impact on the level of benefits individuals will receive at retirement. If these issues are not addressed, they threaten to undermine the effectiveness and financial sustainability of the pension system in the context of rapid population ageing.