Thailand's Social Security Fund achieves THB 2.7 trillion in investments in Q1 2025

In the first quarter of 2025, Thailand's Social Security Fund (SSF) reported total accumulated investments of 2.7 trillion baht, yielding returns of over 22 billion baht.

The Social Security Office (SSO) attributed this performance to a strategic reallocation toward low-risk securities, in line with the SSF's investment strategy approved by the Social Security Board.

SSO Secretary-General Marasri Jairangsee emphasized the fund's stability, citing annual contributions of approximately 220 billion baht and benefit expenditures of about 135 billion baht.

Despite the rising trend in benefit payments—which have increased 97 times over 34 years—the fund has maintained both the contribution rate and the wage ceiling, while improving access to social security benefits for insured individuals.

Marasri acknowledged that the SSF faces future challenges due to Thailand’s aging population. Projections indicate that by 2035, 30% of the population will be elderly, potentially resulting in a balance between contributions and expenditures. To address this, the SSF is working with the International Labour Organization to gradually reform the pension system and ensure long-term sustainability.

In response to these demographic shifts, the SSF is diversifying its investment portfolio. Plans include allocating 375 billion baht into global private assets such as private equity, private credit, and hedge funds by mid-2027. This move aims to enhance returns and globalize the investment approach, shifting away from a predominantly domestic, low-risk strategy. The goal is to achieve a 50-50 allocation between low-risk and higher-risk investments by 2027.

Marasri reaffirmed the SSF's commitment to maintaining the stability and quality of benefits for insured individuals, ensuring a robust and secure social safety net for the future.