Asian societies are aging, and Thailand is aging rapidly. Already over 10 percent of the Thai population, or more than 7 million people, are 65 years old or older. By 2040, a projected 17 million Thais above 65 years of age will account for more than a quarter of the population.
Together with China, Thailand already has the highest share of elderly people of any developing country in East Asia and Pacific, and it is expected to have the highest elderly share by 2040. A recent World Bank report, Live Long and Prosper: Aging in East Asia and Pacific (pdf), discusses aging in Asia and how countries can address the resulting challenges, and take advantage of emerging opportunities.
In many ways, aging is a consequence of longer life expectancy due to development success in Thailand: people live longer, and fertility has come down rapidly from the unsustainably high levels of earlier decades. However, every success brings new challenges and aging is no exception. For example, the size of the working age population in Thailand is expected to shrink over 10 percent by 2040. Thailand has exhausted its “demographic dividend”, and future growth and improvement in living standards will largely come from increases in productivity. In addition, households headed by elderly Thais are twice as likely to be poor as those in their 30s and 40s, and in most cases are not covered by formal sector pension schemes.