Cabinet amends savings act, paving way for retirement lottery scheme

Deputy finance minister believes initiative will address problem of low savings rate

 

In a novel move to bolster national savings, the Thai Ministry of Finance is launching the "Retirement Lottery" scheme, designed to incentivise long-term financial planning through a popular national pastime. 

 

At a press conference on Thursday, Deputy Finance Minister Paopoom Rojanasakul confirmed that the draft legislation, amending the National Savings Fund Act, has received Cabinet approval and is slated for parliamentary debate in March 2025.

 

The scheme, a policy innovation, aims to tap into the Thai public’s propensity for games of chance, converting it into a savings mechanism. 

 

Participants purchase digital scratch-off lottery tickets for 50 baht each, with a monthly limit of 3,000 baht. All proceeds from ticket sales are deposited into individual savings accounts with the National Savings Fund (NSF). Upon reaching the age of 60, participants receive a full refund of their accumulated ticket purchases, plus investment returns.

 


"This initiative addresses the challenge of low savings rates by leveraging a cultural preference," Paopoom explained. "Every baht spent on these lottery tickets becomes a secure retirement fund."
 


  

The lottery will operate with weekly draws every Friday, offering a top prize of 1 million baht, alongside numerous smaller prizes. Unclaimed prizes will roll over into a weekly jackpot. 

 

Crucially, the scheme has been designed to be inclusive, extending eligibility to all Thai citizens aged 15 and above, and even those over 60, who can participate with a mandatory five-year savings period.

 

The ministry estimates an annual budgetary outlay of 760 million baht towards the scheme. However, officials project that it would generate approximately 13 billion baht in annual savings. The NSF plans to invest these funds in low-risk ventures, ensuring capital preservation and modest returns.

 


"The fiscal outlay is minimal compared to the substantial savings we anticipate," Paopoom said. "This is a far more effective use of public funds than traditional welfare programmes, where every baht spent yields only a single baht in return."
 
 



 

The ministry expects the scheme to have a significant impact on Thailand's savings culture, particularly among lower-income groups. By combining the allure of a lottery with the security of a savings plan, the government aims to foster a long-term savings mindset.

 

The proposed legislation will now proceed for parliamentary scrutiny, where it is expected to face detailed examination before being ready for implementation.

(2025/03/13-00:00)