Bangkok, August 6, 2014 - The SEC, jointly with four leading business schools, organized ?1st SEC Working Papers Forum? where the Faculty of Commerce and Accountancy, Chulalongkorn University presented research paper on ?Saving for Retirement?. The researchers pointed out that saving and investment in risky assets at a young age is the key success factor of sufficient retirement savings while urging knowledge dissemination concerning risk and investment in risky assets for higher return in preparation for retirement.

Dr. Vorapol Socatiyanurak, SEC Secretary-General said that the first SEC Working Papers Forum unveiled ?Saving for Retirement?, a paper of the Faculty of Commerce and Accountancy, Chulalongkorn University. The paper addressed current issues that need all relevant sectors? awareness and preparation of policy formulation, introduction of products and creation of public awareness.  In addition, it also proposed implementation guidelines in developing strategy to motivate people to increase their savings and choose to invest in assets which offer higher returns, eventually leading to sufficient retirement savings. Knowledge dissemination concerning return on investment and risk associated with risky assets was also suggested as Thailand is approaching aging society.

Assoc. Prof., Dr. Pornanong   Budsaratragoon, research team leader, Faculty of Commerce and Accountancy, Chulalongkorn University said that the study simulated saving and investment pattern in a sample group of the government officials participating in a mandatory saving scheme of the Government Pension Fund (GPF). The study was conducted to tackle two key research questions: (1) impact of change in saving rate from fixed percentage of the salary to values inversely proportional to age where saving rate decreases with age; and (2) impact of adjusting weight of risky assets in portfolio inversely to age, that is the weight of risky assets decreases with age.

Findings suggested that adjustment of conservative investment to more proactive approach supported sufficiency of retirement savings, especially to start saving at a young age and increase investment proportion in risky assets, such as shares to achieve longer investment horizon. Furthermore, investment plan where proportion of investment in shares is automatically adjustable suit savers with limited knowledge and prefer status quo and clearly benefits those who are young age or about to retire. As a result, policy makers are recommended to determine flexible framework and master investment plan that could reflect and response to each and/or most of members? attitudes and risk tolerances. The research recommended guidelines to develop and encourage retirement savings.

Note: The research paper was presented under the Memorandum Of Understanding between the SEC and Chulalongkorn University, Thammasat University, Kasetsart University and National Institute of Development Administration, the leading business schools, aiming to publicize researches and exchange of knowledge and experience between academics and capital market industry.