This research article considers a simulated scenario in which
there exists policy infrastructure that promotes employment
options to support desirable life after retirement with fiscal
sustainability. Two proposed “demo” policy tools, among
many others, include (1) legislative flexibility in employment
and (2) tax incentives for employers. These measures aim at
encouraging employment structure with working conditions
favorable for elderly workers. The results of the simulation
imply that, given suitable working conditions, a minimum of
50% of the potential elderly workforce participating in the
market can yield marginal annual income of approximately
44,268 - 165,295 Baht per elderly worker and approximately
4.74 - 9.35% GDP increase from the baseline GDP growth
with ageing population structure. Moreover, the estimated
possible minimum marginal net tax revenue is approximately
33,279- 65,994 million Baht. This marginal government
revenue, if allocated to old-age expenditure, amounts to
approximately 4,000 Baht per elderly per year. The proposed
scenario with policy infrastructure that encourages elderly
labor participation in the economy constitutes a self-funded
model with fiscal sustainability and represents a win-win
scenario. Nevertheless, the success of implementing such
policy tools depends on the understanding, co-operation and
synchronization among the Thai public institutions as well as
all parts of the society.