A Comparative Study of Pension System Between Japan and Thailand

Abstract

This article is a comparative study between Japan’s pension systems and Thailand’s pension system. Data used in this article were derived from governmental documents, policy issues, and news and media information, and a content analysis was utilized. This article found that Japan has been becoming an aging society rapidly, which affects the nation’s pension system. Because Japan has been facing with the increasing number of elderly people and the decreasing birth rate together with unexpected economic factors, namely inflation, labor shortages, and a higher unemployment rate, Japan's pension system is unable to deal with these problems. This article found that many Japanese elderly people have chosen to move to other countries where the cost of living is cheaper. Interestingly, some of them have chosen to commit minor crimes in order to spend time in prison. Like Japan, Thailand is facing with the disproportion of population structure and the increasing number of aging populations. Thailand’s pension system is complex and involves several agencies, which differs from Japan where the pension system is centralized. A subsistence allowance for Thai elders is incompatible with the current cost of living in Thailand. That makes Thailand's pension system become worse comparing to Japan's. All in all, this article proposes that the pension system of Thailand should be improved in order to make it accessible to all. Thailand should also establish its retirement management system and make it to be more flexible, efficient, and effective.