Retirement investment plan for Thai ..

[mikey88]

Does anyone with experience know about retirement investment plans for Thai workers.

I’m interested in helping a friend, whose on a low wage, start a plan of regular investing into perhaps a private equity managed fund....something long term.

I’ve been to Bangcoq Bank and have had not much help in terms of them really understanding what I want.

In Australia we would call it Superannuation.

You pay in every week for the rest of your working life.....any such thing here do you know.....?

Any asistance appreciated as always...

[NancyL]

You may want to go to Bangkok Bank Kad Suan Kaew and talk with them.  It's my understanding that the Thai gov't recognizes they have a problem with an ageing population and low birth rate, plus no real gov't retirement pension scheme, so they are trying to encourage people to do exactly what you are encouraging your friend to do.

 

The common vehicle for this are for people to invest in "retirement mutual funds" at the several very solid Thai banks.  A Thai person can put aside up to 15% of their "pretax earnings" into a RMF and them take the money out at retirement with no income tax owed.  There are certain conditions, that aren't onerous, like the money has to be kept in the fund for at least five years and the person as to be over age 55 when withdrawing.  These funds earn a fairly good rate of return, too, at least by U.S. and U.K. standards.  

 

These are very good plans, similar to your Aussie Supperannuation and our U.S. 401k plans.  Please encourage your friend to make regular weekly/monthly deposits into such an account:

 

http://www.bangkokbank.com/BangkokBank/PersonalBanking/BuildYourWealth/MutualFunds/BBLAM/RMF/Pages/default.aspx

[BuddyDean]

Also, if they lack the discipline to invest like that, consider home buying programs for lower income earners at www.ghbank.co.th. might be less than rent.  Pay the house off, then you have a lot more money to invest in stocks and funds.

Edited November 27, 2017 by BuddyDean

[elektrified]

Some large companies give their employees a contractual bonus each year in the form of a deposit into an investment account managed by one the larger banks. They can choose how aggressive they want to invest; i.e. stocks and bonds (mutual funds), or maintain a cash balance but with a very low interest rate. My wife has it in her employment agreement how much she gets each year and what the yearly bonus will be, which is always more than the previous year. If they attempt to withdraw any of the money before - I think 5 years - (very difficult to do as it requires a trip to Bangkok), they are penalized heavily.

[mikey88]

My friend’s work doesn’t have any retirement savings plan.....that’s what I’m after....

The house loan idea is a good although I can’t see how they would qualify if they have no money to start with...but I’ll look into it thanks.

A commercial retirement fund is what I’m after....with a reputable bank or company...something where they can pay in small amounts monthly for 20 or 30 years...

Thanks Nancy....I’ll look into your idea as well.

A managed fund is what I think I need....??

[mikey88]

Nancy L.....very helpful link....thank you.