Should Social Pensions be Universal or Targeted? Older Persons' Preferences over the Old-Age Allowance System in...

There are continued debates on whether social pensions should be universal or targeted. This paper investigates this issue from the perspectives of Thai older persons regarding the old-age allowance system. The paper uses data from the 2016 Population Change and Well-being in the Context of Aging Society Project with the final sample of 6,040 individuals aged 60 and older. The study employs probit regression analysis, where the dependent variable is whether the respondent thinks that the old-age allowance should be universal or targeted. Independent variables include individual, household, social, and economic characteristics. The paper finds that those with high or low education and those with high or low economic well-being tend to prefer the targeted system compared to the middle group. Family status, individual values, and social norms also influence the preferences. The two main mechanisms explaining the preferences of older persons are self-interest and altruism. The findings suggest that the old-age allowance system should continue to provide basic income security for all older persons. Separate poverty relief programs can be implemented to support individuals in need.