Thailand is using its strong lottery culture to encourage informal workers to save for retirement – but questions remain about whether the scheme will change behaviour or fuel more gambling.

Like many countries in South and East Asia, Thailand is seeking to improve retirement savings for informal and self-employed workers. Its retirement lottery scheme, which is linked to its National Savings Fund, seeks to address persistently low pension coverage among informal workers by drawing on Thailand’s strong lottery culture, but questions remain about whether it will increase savings or simply add to existing lottery spending.

While the policy has attracted international attention as an innovative behavioural nudge, its long-term success will depend on its effectiveness, equity and the ethical implications of using lottery-style incentives to promote financial security.

In Thailand, government officials and those employed in the formal sector are guaranteed a minimum pension upon their retirement. In contrast, informal workers only have access to a voluntary program. The National Savings Fund (NSF) was designed to solve this problem. The NSF provides informal workers with an individual savings account, supported by a matching contribution from the government, a guaranteed return on investment and tax benefits. The challenge is to achieve wider NSF coverage and to encourage existing members to........

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