Early Retirement Surprises Thai Communities at Age 45

The rise of virtual banking in Thailand has brought about significant changes, not only in the financial sector but also in the broader workforce. This shift has been marked by the increasing use of artificial intelligence (AI) and the subsequent reduction in manpower requirements.

One of the key challenges lies in finding a balance between human expertise and AI to sustain a presence in the modern workforce. Thanes Weeraworawit, an expert in the field, emphasises the need for synergy between the two to ensure businesses can thrive in this new landscape.

In response, the government is considering introducing legal frameworks to regulate AI use, with a focus on ensuring worker protections and benefits. This move aims to address concerns raised by the economic downturn predicted for 2025 by Supant Mongkolsuthree. He believes that this crisis will be unlike past ones due to technology accelerating job displacement.

In a positive light, early retirees may find opportunities in the digital economy and online platforms, particularly in caring for Thailand's aging population. Supant sees potential for these individuals to make a significant contribution.

However, the introduction of early retirement programs, such as the one initiated by Kasikornbank (KBank) at the age of 45, has sparked debate. At 45, many workers may not be financially secure and may struggle to find another job, potentially relying on limited savings for the rest of their lives. Chalothorn Kaewkuea, a 55-year-old office worker, expressed concern about early retirement at 45, fearing it signals instability for white-collar workers.

Small and medium-sized enterprises (SMEs) are also facing pressures, with as many as 4.5 million SME workers at risk in Q4, due to the US tariff policy. Permanent contracts in the SME sector are being replaced by temporary employment as firms cut costs and adapt to new technologies.

Experts consider the early retirement program to reflect rapid technological disruption and growing pressures on employers and employees. Pushing workers out too early risks eroding trust in employers and could increase pressure on the Social Security Fund.

However, workers who leave the workforce can remain within the social security system by continuing contributions under Articles 39 or 40 if they shift to freelance work. The Social Security Office (SSO) is prepared to assist workers who lose their jobs involuntarily, providing up to 90 days of assistance.

Employers must ensure adequate compensation and avoid coercion when offering early retirement. It's crucial to maintain fair practices to foster a stable workforce and prevent undue pressure on the Social Security Fund.

Looking ahead, certain industries such as the automotive industry and emerging sectors like hydrogen technology for steel production are considered more resilient to early retirement trends. This is because these industries are undergoing transformations that emphasise future viability and competitiveness, such as the development of green hydrogen and energy transition efforts in regions like Saarland.

In conclusion, the digital age presents both challenges and opportunities. Adapting to these changes requires a balanced approach, ensuring the protection of workers while fostering innovation and growth.