Assessing Expected Retirement Age and Working Hours of Pre-Retirees in Thailand

Savinee Mega, Kanyaphak Ngaosri and Worawan Chandoevwit

No 255, PIER Discussion Papers from Puey Ungphakorn Institute for Economic Research

Abstract: In Thailand, the Mandatory Retirement Age (MRA) is governed by law; however, private corporations may implement their own specific retirement thresholds. The public sector enforces an MRA of 60, but private companies may set at 55, aligning with the Social Security Retirement Age. Understanding how these varying institutional constraints shape individual labor supply decisions is critical for effective policy planning in an aged society like Thailand. Therefore, this study investigates the factors influencing the Expected Retirement Age (ERA) and Expected Working Hours (EWH) among Thailand’s pre-retirement formal-sector workforce aged 50–60. Using survey data from 1,573 employees across four regions, the analysis employs interval regression for the ERA model and Ordered Probit and Tobit models for the EWH model. The findings reveal that enforcement of an MRA is a primary determinant of retirement timing: employees subject to an MRA expect to retire significantly earlier and reduce their working hours more sharply as they approach the retirement threshold. Rather than an abrupt exit, the data show a clear pattern of expecting a gradual reduction in work intensity as workers age. Employees in elementary occupations expect to retire later and work longer hours, while those with access to stable pension benefits expect earlier retirement and fewer working hours. The study recommends reforming mandatory retirement regulations to permit voluntary employment extensions and promoting phased retirement schemes that allow a gradual reduction in working hours.

Keywords: Expected retirement age; Expected working hours; Mandatory retirement age; Older workers; Phased retirement; Labor supply; Aging workforce (search for similar items in EconPapers)
JEL-codes: J14 J22 J26 J38 (search for similar items in EconPapers)
Pages: 25 pages
Date: 2026-06
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