Muang Thai Life targets retirement gap as Thailand’s population ages

Muang Thai Life Assurance Plc (MTL) is expanding its longevity strategy with a new range of flexible annuity products and a nationwide senior-care network, as Thailand confronts rapid population ageing, a shrinking workforce and insufficient retirement savings.

Sara Lamsam, chief executive officer of MTL, said the insurer, which has operated alongside Thai society for 75 years, is broadening its role beyond life and health protection towards a comprehensive Longevity Ecosystem.

The strategy centres on three areas: lifespan, or living longer; healthspan, or remaining healthy for longer; and wealthspan, or maintaining sufficient financial security throughout life.

“Longevity is not simply about living longer. We also need to look at how long people can remain healthy and whether they have sufficient financial resources throughout their lives. Lifespan, healthspan and wealthspan therefore have to move together,” Sara said.

Thailand’s ageing population puts pressure on workforce

Thailand’s demographic shift is adding urgency to that strategy. Sara noted that the country is moving towards becoming a super-aged society, with people aged 60 and above accounting for nearly 30% of the population.

At the same time, falling birth rates and a shrinking working-age population are raising longer-term concerns about Thailand’s labour supply and the number of people supporting the economy.

Sara pointed to a National Economic and Social Development Council projection showing that Thailand’s population could fall to just over 30 million by 2083 if current demographic trends continue.

“The working population will continue to shrink while more people move into retirement. If fewer people are entering the workforce, that becomes a major issue not only for individuals but for Thailand’s development as a whole,” he said.

Savings gap compounds Thailand’s ageing challenge

Retirement readiness is another major concern as longer lifespans mean people may need to support themselves financially for decades after leaving work.

Sara noted that 30% of Thais have no savings, while 60% have less than THB200,000. He contrasted Thailand with countries where compulsory saving mechanisms and stronger saving habits form a more established part of retirement planning.

He argued that financial security should receive the same attention as health when Thailand discusses longevity.

“People often talk about longevity and healthspan, but wealthspan is just as important. If people live longer but do not have enough money after retirement, the impact does not stop with the individual. It extends to their family, society and the economy,” he said.

The challenge is compounded by rising healthcare costs. Sara noted that an ageing population is likely to require greater medical spending, while Thailand has an estimated gap of around 10 years between overall lifespan and healthy life expectancy.

He also highlighted medical inflation as another pressure facing people planning for retirement, noting that longer lives do not necessarily mean all of those additional years will be spent in good health.

Flexible pensions target changing retirement needs

Against this backdrop, MTL has launched the Muang Thai Flexi Retire Series, a range of annuity insurance products designed to give customers greater flexibility over how they save for and receive income in retirement.

Depending on the plan, customers can choose to pay a single premium, pay premiums for five years, or continue payments until a selected age of 55, 60 or 65.

Customers can also choose to begin receiving their pension at 55, 60, 65 or 70. The company says customers who subsequently change their retirement plans can adjust the selected pension start age under the product conditions without paying an additional premium or undergoing new underwriting.

Pension payments can be received annually or monthly, while customers can choose stepped-up pension payments as they grow older. Another option allows 30% of the first pension payment to be received as a lump sum.

According to the company, eligible premiums can qualify for a tax deduction of up to THB200,000, while the products also offer guaranteed underwriting options without a medical examination.

The series comprises Flexi Retire Pro 90/1 D55, D60, D65 and D70; Flexi Retire Next 90/1 D55, D60, D65 and D70; Flexi Retire 90/5 D55, D60 and D65; and Flexi Retire 9055, 9060 and 9065.

The Flexi Retire 9055, 9060 and 9065 plans are scheduled to go on sale on October 1, 2026.

Senior-care network expands longevity ecosystem

MTL is also expanding its Senior Ecosystem through partnerships with 44 senior-living and nursing-home providers nationwide, with services for older people and patients requiring rehabilitative or longer-term care.

Annuity policyholders who use participating senior residences can request that their pension payments be made directly to the care provider. MTL also plans to extend the arrangement to savings insurance policyholders.

Other partner services cover housing designed for active older people, residences providing 24-hour nursing and professional care, assisted transport for medical appointments, and end-of-life care focused on comfort and allowing patients to remain close to their families.

Sara said the broader strategy is intended to connect retirement finances with healthcare and later-life services rather than treating retirement planning as simply a matter of accumulating a lump sum.

“The Longevity Ecosystem is not only about introducing new products and services. We want to strengthen retirement planning by connecting financial security, health and care, so people can prepare for longer lives while remaining as independent as possible,” he said.

He added that MTL would continue developing products and services aimed at supporting customers’ financial and health security throughout different stages of life.