Early Retirement Surprise for Thais at 45 Years Old

In the ever-evolving landscape of work, resilience and adaptability have become essential traits for survival. This is according to Thanes, a commentator on the modern workforce.

Amidst these changes, the value of experienced workers in their mid-40s is still recognised by companies. Chalothorn, another observer, points out that these workers possess valuable health, skills, and experience that businesses could benefit from.

However, small and medium-sized enterprises (SMEs) are facing unique pressures. With as many as 4.5 million SME workers now directly at risk due to the US tariff policy in Q4, the challenges are real and urgent.

The introduction of the Early Retirement (ER) programme by Kasikornbank (KBank) has sparked widespread debate. Niyada Seneemanomai, spokeswoman for the Social Security Office (SSO), has assured that the agency is prepared to assist workers who lose their jobs involuntarily, providing up to 90 days of assistance under existing regulations.

The concern, however, is that the ER programme could set a precedent for other industries, particularly those undergoing digital transformation. Tanit Sorat, Vice President of the Employers' Confederation of Thai Trade and Industry, emphasises that such schemes must comply with existing laws.

As technology accelerates job displacement, Supant Mongkolsuthree, former chairman of the Federation of Thai Industries, warns that the economic downturn in 2025 will be unlike past crises. He urges policymakers to provide more support for workers in the face of technological disruption.

In the banking industry, artificial intelligence (AI) is a major force reshaping business models. Employers must ensure adequate compensation and avoid coercion when implementing early retirement programmes, as urged by Tanit.

Certain industries, such as craftsmanship, healthcare, and creative fields, will remain resilient, according to Supant. He suggests that early retirees may find opportunities in the digital economy and online platforms, particularly in caring for Thailand's growing ageing population.

However, those who leave the workforce can face challenges. At 45, many workers are only beginning to build financial security 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, expresses concern about early retirement at 45 due to potential instability for white-collar workers.

Employees considering early retirement should carefully review their social security entitlements, as some benefits tied to the minimum age of 55 may be forfeited. Pushing workers out too early risks eroding trust in employers and could increase pressure on the Social Security Fund, Chalothorn notes.

Permanent contracts in the SME sector are increasingly being replaced by temporary employment as firms cut costs and adapt to new technologies. He urges policymakers to revise unemployment benefits to address rising living costs.

Moreover, the rise of virtual banking has widened generational divides and reduced the need for manpower. Supant urges policymakers to support workers in adapting to these changes and creating synergy between human expertise and AI.

Some Thai-owned companies are offering reskilling in digital skills to help employees delay retirement. This proactive approach could set a positive example for other organisations navigating the digital transformation.

In conclusion, the modern workforce is undergoing significant changes, with AI being a major driving force. Workers must adapt to these changes to remain relevant, and policymakers have a crucial role in supporting workers and ensuring a fair transition.