Summary Nightmares loom if savings dry up - TDRI: Thailand Development Research Institute tdri.or.th
975 words - html page - View html page
One Line
The lack of savings and poor financial literacy among Thais may result in severe consequences due to COVID-19 and job losses, emphasizing the need for efforts to improve financial knowledge and implement mandatory saving schemes.
Slides
Slide Presentation (11 slides)
Key Points
- The importance of having financial savings has never been greater during the coronavirus pandemic and mass layoffs.
- Only one-quarter of the Thai population can live on their savings for just three months.
- The majority of the elderly in Thailand do not have enough savings to live on.
- Financial literacy and saving habits among the Thai populace are weak.
- Financial knowledge is the weakest indicator of financial literacy in Thailand.
- Efforts should be made to promote financial knowledge and savings habits among the public.
- Mandatory saving schemes may be necessary for informal workers without social security support.
- Without stronger savings habits and financial discipline, Thailand may face a future where the elderly live in poverty on meagre state allowances.
Summaries
46 word summary
COVID-19 and job losses may lead to dire consequences as only a quarter of Thais have sufficient savings for three months. Poor financial literacy and savings habits were highlighted in a 2018 survey. Efforts are needed to improve financial knowledge, skills, and implement mandatory saving schemes.
72 word summary
The Thailand Development Research Institute (TDRI) warns that the depletion of savings due to COVID-19 and job layoffs could have dire consequences. Only a quarter of the Thai population has enough savings for three months. The TDRI conducted a survey in 2018, revealing poor financial literacy and savings habits. Efforts are needed to promote financial knowledge and skills, implement assessments, and introduce mandatory saving schemes to prevent poverty in an aging society.
165 word summary
The Thailand Development Research Institute (TDRI) warns that the depletion of people's savings could lead to dire consequences. With the COVID-19 pandemic and increasing job layoffs, the importance of financial savings has become more critical than ever. Unfortunately, only a quarter of the Thai population has enough savings to sustain themselves for three months, posing a significant challenge. Moreover, Thailand's rapidly aging society faces a grim situation as most elderly individuals lack sufficient savings. The TDRI conducted a survey in 2018, which revealed disheartening results regarding the financial literacy and savings habits of Thai households. Efforts must be made to promote financial knowledge and skills to foster stronger savings habits and financial discipline. This includes conducting more studies on households' access to financial services and implementing systematic assessments of financial knowledge and behavior. Furthermore, mandatory saving schemes may be necessary for working-age groups, especially informal workers without social security support. Without these measures, Thailand risks becoming an aging society plagued by poverty and inadequate savings.
449 word summary
The Thailand Development Research Institute (TDRI) has issued a warning about the potential nightmares that could arise if people's savings dry up. The COVID-19 pandemic and increasing job layoffs have made the need for financial savings more critical than ever. Unfortunately, only a quarter of the Thai population has enough savings to sustain themselves for three months, which poses a significant challenge. Additionally, Thailand's rapidly aging society will face a grim situation in which the majority of elderly individuals do not have sufficient savings.
The Financial Literacy and Access Survey of Thai Households in 2018 revealed disheartening results. Only 13.1% of respondents had enough savings to support themselves for a year or longer if they lost their jobs, while 23.8% said their savings would run out within three months. To address this issue, it is essential to understand people's spending and saving behavior, as well as the factors that influence their financial decisions.
Financial literacy plays a vital role in promoting saving habits. The TDRI used OECD guidelines to assess financial literacy in Thailand. While the average financial literacy score in 2018 was on par with developed countries at 62.8%, a closer look at the indicators showed weaknesses. Thai people scored lowest in financial knowledge at 56.7%, compared to OECD countries at 65.7%. Financial behavior scored slightly better at 59.6%, while financial attitudes received the highest score at 77.3%.
The low financial knowledge among the Thai population remains a significant challenge. Insufficient skills in calculating interest rates, investment returns, and financial risks can have serious consequences on individuals' finances. Although Thailand's overall financial literacy is comparable to OECD countries, their scores on financial knowledge, behavior, and attitudes are not significantly different.
Efforts must be made to promote financial knowledge and skills to foster stronger savings habits and financial discipline. This includes conducting more studies on households' access to financial services and implementing systematic assessments of Thai people's financial knowledge and behavior. Promoting financial literacy should begin early in childhood to instill good financial discipline and saving habits that will last a lifetime.
For working-age groups, particularly informal workers without social security support, mandatory saving schemes may be necessary. Without these measures, Thailand risks becoming an aging society plagued by poverty and hardship due to insufficient savings.
In conclusion, having financial savings is crucial, especially during crises like the ongoing pandemic. The TDRI emphasizes the need to promote financial knowledge and skills among the Thai population to foster stronger savings habits and ensure financial well-being. Efforts should start early in childhood and extend to working-age groups, with a particular focus on informal workers. Without these measures, Thailand faces the risk of an aging society plagued by poverty and inadequate savings.
463 word summary
The Thailand Development Research Institute (TDRI) warns that if savings dry up, nightmares will ensue. With the ongoing coronavirus pandemic and increasing layoffs, the importance of having financial savings has never been greater. However, only one-quarter of the Thai population can live on their savings for three months, posing a significant challenge. Even in the post-pandemic era, Thailand's rapidly aging society will face a grim scenario where the majority of the elderly do not have enough savings to sustain themselves.
The Financial Literacy and Access Survey of Thai Households in 2018 revealed disheartening findings. Of the respondents, only 13.1% had enough savings to live on for a year or more if they lost their jobs, while 23.8% said their savings would run out within three months. To address this issue, it is crucial to understand people's spending and saving behavior, as well as what influences their financial decisions.
Financial literacy plays a vital role in promoting saving habits. The TDRI used the Organisation for Economic Co-operation and Development (OECD) guidelines to assess Thai people's financial literacy. While the average financial literacy score in 2018 was 62.8%, on par with developed countries, a closer look at the indicators reveals weaknesses. Thai people scored lowest in financial knowledge at 56.7%, compared to OECD countries at 65.7%. Financial behavior scored slightly better at 59.6%, while financial attitudes received the highest score at 77.3%.
The low financial knowledge among the Thai populace remains a significant challenge. Without the skills to calculate interest rates, investment returns, and financial risks, weak financial knowledge can seriously impact individuals' finances. While Thailand's overall financial literacy is comparable to OECD countries, their scores on financial knowledge, behavior, and attitudes are not significantly different.
Efforts to promote financial knowledge and skills must be made to foster stronger savings habits and financial discipline. This includes conducting more studies on households' access to financial services and implementing systematic assessments of Thai people's financial knowledge and behavior. Promoting financial literacy should start early in childhood to instill good financial discipline and saving habits that will last a lifetime.
For working-age groups, particularly informal workers without social security support, mandatory saving schemes may be necessary. Without these measures, Thailand is at risk of becoming a fully-fledged aging society where the elderly struggle with poverty and hardship due to insufficient savings.
In conclusion, the importance of having financial savings is crucial, especially in times of crisis like the ongoing pandemic. The TDRI emphasizes the need to promote financial knowledge and skills among the Thai population to foster stronger savings habits and ensure financial well-being. Efforts should start early in childhood and extend to working-age groups, with a focus on informal workers. Without these measures, Thailand faces the risk of an aging society plagued by poverty and inadequate savings.