Thailand’s ‘retirement lottery plan’ wins World Bank praise
Thailand’s new “Retirement Lottery” scheme has drawn praise from the World Bank, which described the initiative as a “remarkable innovation” aimed at improving retirement savings through a familiar cultural activity: gambling.
Discussed during the recent World Bank–International Monetary Fund Spring Meetings in Washington, D.C., the scheme repurposes public interest in lottery-style games into a structured savings model.
The World Bank views the project as a potential blueprint for other developing nations facing similar issues, especially those experiencing low savings rates in aging demographics. Officials emphasised its ability to balance affordability, cultural significance, and sustainable financial strategies.
Saving money while gambling
The program consists of digital scratch-off tickets, each costing 50 baht (€1.25), allowing participants to purchase up to 3,000 baht (€75) worth of tickets per month. Every week, five top prizes are awarded at one million baht (€25,000), along with 10,000 additional prizes of 1,000 baht (€25). Importantly, all ticket purchases act as retirement savings; buyers receive the entire value of their tickets, including any investment gains, upon reaching the age of 60.
Thailand’s Deputy Finance Minister, Paopoom Rojanasakul, said the project requires an annual budget of about 750 million baht (€18.75 million) but could encourage savings of up to 13 billion baht (€325 million) per year. He added that the scheme also aims to channel funds away from informal gambling markets and into the formal economy.
“The Retirement Lottery is not just a savings tool. It draws on familiar behaviour and offers a structured way to prepare for the future,” Paopoom noted.
The initiative recently passed its first reading in Thailand’s Parliament and is currently moving through the legislative process. Its popularity appears strong: a recent government-backed poll reported that more than 99 percent of respondents support the measure.
Ageing population in focus!
Thailand, like many other Asian countries, is facing increasing financial pressure due to an ageing population and insufficient pension coverage for informal sector workers. Proponents argue that the lottery-based system could help fill this gap, especially for low-income individuals who have limited access to traditional retirement plans.
While the scheme has not yet been fully rolled out, the World Bank’s endorsement enhances the government’s efforts. Experts indicate that this approach could significantly bolster the Thai government and serve as a model for other countries aiming to promote savings in ways that align with local customs and practices.
