According to an online survey conducted by DDproperty, 6 in 10 respondents expressed no fears or concerns for their old age living situation while Thailand has the highest share of elderly people of any developing countries in East Asia and Pacific1.
By 2030, the number of people aged 60 and over is projected to rise to 17 million from 11 million in 2016, accounting for 27 percent of the population or approximately out of every four Thais, one will be a senior citizen. While 25% of the respondents expressed they are worried they will not be able to pay for adequate housing in old age. (Figure 1: 7 Concerns Regarding Ageing Living Situation) According to SCB Economic Intelligence Center, Thais are not financially prepared to retire or often underestimate the amount of savings needed for retirement.
Most respondents have no concerns about living situations in their old ages
Out of 661 respondents, 43 percent aged 21-39, 40 percent aged 40-59, and 17 percent specified that their age 60 and over. The study reveals that only 37 percent of the total respondents are looking for or have already looked for property with elderly friendly features or property located near elderly care facilities, while the rest feels the topic does not affect them at the moment.
The primary driver of ageing in Thailand has been the steep decline in fertility rates which fell from 6.1 in 1965 to 1.5 in 2015 (Figure 2: Declining Fertility Rate in Thailand) as a result of rising incomes and education levels and the successful national family planning program launched in 1970, according to World Bank.
Fertility Rate declines from 6.1 to 1.5 in the last 50 years
Singapore is also dealing with ageing population, 1 million people aged 60 and over, accounting for 18 percent of the population and projected to grow to 31 percent by 20302. The number of retirees in Singapore or people with a minimum age of 62 will reach 900,000 by 2030 according to government statistics.
However, another study conducted in Singapore reveals that over 80 percent of Singaporean respondents feel that the subject of living in old age does not affect them and the majority still do not worry about their living situation after retirement. Similar to Thailand but Singapore’s GDP per capita is ten times that of Thailand today. (Figure 3: GDP per capita)
GDP Per Capita of Singapore and Thailand
In Singapore, the issue of rapidly ageing population has been on the national agenda and the ‘ageing-in-place’3 principle has been adopted in housing and land use policies for seniors. A “Code on Accessibility in the Built Environment 2013” was enacted which was adapted from the early version a “Code on Barrier-Free Accessibility in Buildings” issued by Building and Construction Authority in 1990 to ensure that new buildings conform to a set of standards in order to provide accessibility and safety to future older populations.
“The demographic transition in Thailand may post both threats to the country’s economy due to the shrinking of working-age population and opportunities for various industries. However, real estate sector nowadays is mainly driven by consumer’s demand while some of the developers have already incorporated elder-friendly fittings and features into the designs but only a number of consumers have recognized the benefits of the options unless the ageing issue have already affected them and families. I hope that our survey findings shall flag out to the officials or related authorities for the importance of enforcement to allow future senior citizens to grow old in their residences with minimal disruption to their lives.” said Mrs. Kamolpat Swaengkit, DDproperty’s Country Manager.
References:
1 Thailand Economic Monitor – June 2016: Aging Society and Economy, www.worldbank.org
2 AgeWatch Report Card: Global AgeWatch Index 2015, www.helpage.org
3 Successful Ageing – A Review of Singapore’s Policy Approaches, www.cscollege.gov.sg
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