Thai government to allow citizens to partially convert losing lottery tickets to retirement savings
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The new initiative will see a portion of the price of non-winning digital lottery tickets automatically channelled into a dedicated savings account.
PHOTO: ST FILE
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BANGKOK – The Thai government is introducing a novel policy that allows citizens to convert money spent on losing digital lottery tickets into retirement savings, describing the scheme as a means to “return profit” and encourage thrift in the face of an ageing population.
Mr Ekniti Nitithanprapas, Deputy Prime Minister and Minister of Finance, confirmed the plan on Oct 1, revealing he has instructed the Permanent Secretary to finalise the criteria for the mechanism.
The project is expected to be launched within the next four months as one of the government’s priority “Quick Big Wins”.
The new initiative will see a portion of the price of non-winning digital lottery tickets automatically channelled into a dedicated savings account.
“This ‘Lottery Savings’ scheme isn’t formally named yet, and it is entirely separate from the ‘Lottery Pension’ scheme run by the National Savings Fund (NSF),” Mr Ekniti explained.
“The money will be segmented from the ticket price and held under principles similar to a Retirement Mutual Fund (RMF): funds can be withdrawn once the individual reaches the age of 55.”
He added that those aged 56 and over can continue saving for an additional five years, and the accumulated funds may be used as collateral for loans, offering liquidity to savers.
The ministry also intends to offer attractive 1 per cent interest government bond investment opportunities to elderly and retired citizens monthly, ensuring retail investors can participate easily.
Mr Lavaron Sangsnit, Permanent Secretary of Thailand’s Ministry of Finance, stressed that the project’s goal is purely to promote saving, not to increase gambling.
Crucially, the scheme will be limited to tickets purchased via the “Pao Tang” digital application, as the platform’s digital infrastructure makes it possible to accurately track purchasers and credit their individual savings accounts.
Funding for this returned saving will be allocated from the 17 per cent share of revenue currently allocated to the Government Lottery Office, which falls under the Minister’s discretionary authority.
Mr Lavaron confirmed the savings will be managed with an emphasis on safety and capital preservation, likely through a highly secure fund structure. THE NATION/ASIA NEWS NETWORK
