SEC to educate companies, employees on savings for retirement

The Securities and Exchange Commission (SEC) will go out to meet companies and their employees to educate them about retirement savings.

Rapi Sucharitkul, the SEC secretary-general, said since Thailand will become an aged society in 2025, he is afraid salarymen will have a difficult life after retirement.

A study reveals that those who live on salaries should have 2.1-3.3 million baht in savings in order to lead a normal life after retirement.

However, it is found that only 3 million employees, about 21.5% of the total workforce in 17,000 companies or 2.8% of the juristic entities, are members of a provident fund.

Moreover, these company workers are not interested in investment by their provident fund, but let company executives to decide for them. The executives are usually very careful in the investment, of which the return is usually low. They often invest 84-85% in the bond market and only 16-17% in the stock market.

Therefore, the SEC with cooperation from the Stock Exchange of Thailand (SET) and the Association of Investment Management Companies (AIMC) will go out to meet employers and employees of various companies to educate them about the Pension Act which will take effect in 2018. The law requires all entrepreneurs to set up a retirement provident fund for their employees.

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