Finance Ministry mulls cutting pensions for rich seniors
The Finance Ministry is considering reducing the monthly pensions for wealthy senior citizens to save costs.
It said it is proposing cutting pensions for high-income retirees to reduce expenditure and build a sustainable fiscal foundation. Pension spending has increased rapidly to 90 billion baht per year, up from an average of 50 billion baht per year before a surge in the number of elderly people, the ministry explained.
Krisada Chinavicharana, its permanent secretary, said high-income elderly people do not need pensions. Cutting pension payments to them will help ensure long-term fiscal sustainability.
Pensions are intended to provide financial assistance to the most vulnerable people, Krisada said.
When asked if the plan would be politically feasible, Krisada said that if governments only made decisions based on keeping the support of voters, they would never accomplish anything. The ministry estimates that it can reduce pension payouts by half if it stopped paying them to wealthy retirees.
