CBS and GPF unite to develop ‘Retirement Readiness Index for Thailand’
24th February, The Government Pension Fund (GPF), in collaboration with Chulalongkorn Business School (CBS), is developing the Retirement Readiness Index for Thailand, a successor to the Retirement Readiness Index for GPF Members, which was established in 2019, aiming for completion by the third quarter of 2021.
Mr. Vitai Ratanakorn, Secretary-General of the GPF Commission, stated that in 2019, the GPF and CBS successfully developed the Retirement Readiness Index for GPF members as an effective tool for delineating a strategic development plan, measuring the retirement readiness of GPF members, and communicating with the members to raise their awareness of the importance of saving and financial planning. Such an achievement, he believed, could serve as a solid foundation on which to create the Retirement Readiness Index for Thailand.
According to Mr. Ratanakorn, “this Retirement Readiness Index for Thailand will provide useful information to GPF members and the general public regarding preparation for aging as well as the importance of saving and financial planning for retirement. Furthermore, it will benefit the public sector in assessing the population’s readiness to retire, which will, in turn, contribute to its planning, specification, and revision of guidelines for a quality retirement for Thai people.”
“Not only will the index address retirement in both public and private sector contexts, but it will also integrate a holistic approach to retirement readiness assessment incorporating factors relating to finance, health, and living conditions. It is expected that the index can be released by the third quarter of 2021,” Mr. Ratanakorn added.
To Assoc. Prof. Wilert Puriwat, D.Phil., Dean of CBS, this collaboration between GPF and the faculty is a marvelous opportunity for the two organizations to help prepare Thai people for the evolving aging society. The move also accords with the faculty’s mission to press ahead for the common good and Chulalongkorn University’s mission to serve as a pillar for the development of the nation.
The GPF’s primary tasks under its member-centric strategy encompass savings promotion, savings management for retirement, and financial health maintenance. Based on its 2020 saving readiness and financial management for retirement criteria, the GPF classifies its members into three groups.
The first is the additional savings group, comprising those who are in a good financial situation but have yet to increase their savings with the GPF, and those who need to level up their savings with the GPF to ensure sufficient retirement funds.
The second is the portfolio management group, made up of those with whom the GPF will actively communicate concerning its investment plans to aid them in choosing the right option with an acceptable level of risk.
The last is the financial issue resolution group, consisting of those suffering insolvency whose financial obligations hinder saving for retirement. To help this group of members, the GPF is establishing networks with government financial institutions to implement appropriate aid measures.
For personalized consultation, contact the Financial Assistant Center of the GPF through the My GPF app or fa@gpf.or.th.
