Study reveals how much money you need to retire in Thailand

[snoop1130]

Study reveals how much money you need to retire in Thailand

 

 

Anyone thinking about retiring to Thailand should have the equivalent of around 11 million Baht in savings (approx USD$390,000), that’s according to a new study on the cost of retirement around the world.

 

The study, carried out by online lender NetCredit titled The Cost of a Comfortable Retirement Around the World, looked at how much someone might need to retire aboard and enjoy their same quality of life.

 

This was determined as going out once a week, takeout coffee once a week, no smoking, moderate drinking, no taxis or rideshares, eating mainly Western food at home, two vacations and renting a 1 bed apartment in a city centre, among other factors.

 

The figures are based on someone living for around 14 years after they retire - with the average age of retirement in America (64) and the average life expectancy (78.7). The same calculations were then applied to almost every country. 

 

The study found that a person retiring to Thailand would need $389,835 in savings in order to maintain the same standard of living they were used to in the West.

 

The amount of savings required for Thailand were considerably lower than the amount needed to retire comfortably in both the United Kingdom ($515,742) and the United States ($601,489.63).

 

 

Regionally, Southeast Asia remained an affordable option for retirement, with Indonesia ($290,599), Malaysia ($321,614), Vietnam ($353,906) and the Philippines ($369,340) offering cheaper alternatives to Thailand, while Cambodia ($389,146) was on a par with the Land of Smiles in terms the amount of savings needed. 

 

In order to retire in Singapore ($946,993) or Hong Kong($871,578), you’d need around three times the amount of savings needed to retire in Thailand.

 

Around the world, Bermuda was found to be the most expensive country, where you’d need savings of more  than $1 million dollars for a luxury retirement in paradise.

 

Elsewhere in North America, Mexico was the cheapest place for retirement where savings of $257,078 is enough for a comfortable retirement.

 

 

-- © Copyright Thai Visa News 2021-03-02

 

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[VocalNeal]

Oh dear.????

[Wiggy]

Darn, 10.9m baht short. 

[bigupandchill]

So I can retire to a proper country (Portugal) for only 40k more than here?

[sirineou]

What does  $389,835 Mean ?

Is that to retire for the rest of your life?  at what age?  and  how many years would that last you. ?

 

[Natai Beach]

16 minutes ago, snoop1130 said:

This was determined as going out once a week, takeout coffee once a week, no smoking, moderate drinking, no taxis or rideshares, eating mainly Western food at home, two vacations and renting a 1 bed apartment in a city centre, among other factors.

 

No thanks.

[Salerno]

6 minutes ago, sirineou said:

What does  $389,835 Mean ?

Is that to retire for the rest of your life?  at what age?  and  how many years would that last you. ?

 

23 minutes ago, snoop1130 said:

The figures are based on someone living for around 14 years after they retire - with the average age of retirement in America (64) and the average life expectancy (78.7). The same calculations were then applied to almost every country. 

 

[bdenner]

Given the stats they are using about 750K per year compares reasonably with the average 814K I have spent yearly over the past 20 years (I do keep an accurate ledger). That includes house build, cars etc. Not overseas travel.

[sanuk711]

12 minutes ago, sirineou said:

What does  $389,835 Mean ?

Is that to retire for the rest of your life?  at what age?  and  how many years would that last you. ?

Do you ever think of reading the article before you post sirineou.......all those questions are answered.

[sirineou]

4 minutes ago, Salerno said:

The figures are based on someone living for around 14 years after they retire - with the average age of retirement in America (64) and the average life expectancy (78.7). The same calculations were then applied to almost every country. 

Thank you for that.???? I must have missed that part. 

Then it  comes to 70,529 per month , and it makes sense IMO .

[ThailandRyan]

So if all one happens to have a lifetime Pension that pays a tidy sum  monthly and has nothing in savings then they are not able to retire in Thailand, or other countries, is that the gist of the article?  Or lets see, only having a savings of 1 million USD, but no pension, then they can afford to retire in Thailand as well as elsewhere?  So confused.  Everyone's life style is different and what one wants to buy and eat for their meals, and just like where they choose to live differs, Each individual should learn to live within their means.  I know a few who live in Thailand on just their SS from the US and they are happy as can be.  I also know a few who can afford to live the hi-life and do so but are not happy because they do not have enough in their view.  We all made our beds a long time ago and you either enjoy what you have or you don't, no use crying over spilled milk.

[internationalism]

very few pensioners do have saving that large. Even if they sell their house before moving to thailand.

but each has pension, and that's sufficient to survive reasonable well in thailand.

so it's possible to lower standard of living in thailand and have some savings for medical care

Edited March 2, 2021 by internationalism

[sirineou]

1 minute ago, sanuk711 said:

Do you ever think of reading the article before you post sirineou.......all those questions are answered.

No, but I will from now on. Please dont tell my mom????

[Pinot]

It's an excellent comparison of relative retirement destinations retirement costs. It feels accurate to me. I would have thought the Phils were less.

 

LOS is more expensive because it's better than the surrounding countries. 

[bolt]

At first it may seem high, but its a reasonable amount for 14 years, it works out approx. 70K Thb per month

but 14 years seem a bit short for me.

[Salerno]

10 minutes ago, sirineou said:

Thank you for that.???? I must have missed that part. 

 

The thing that struck me was the somewhat low life expectancy for Americans!

[Pilotman]

29 minutes ago, sirineou said:

What does  $389,835 Mean ?

Is that to retire for the rest of your life?  at what age?  and  how many years would that last you. ?

 

Good question, as a number like that in isolation is meaningless without an explanation. It talks of ''cash in the bank', but how about living property that you have to have.  No point having $500K in the bank if you live in a tent in the desert. Is it an annuity figure from a pension savings pot, or a combination of cash assets and annuity, is it income related? Does it include asset such as house (you have to live somewhere and that is a cost in cash or rent)   

Edited March 2, 2021 by Pilotman

[talahtnut]

Its a stupid study.

Theres money you think you need,

Money you didn't know you want to spend,

Money you didn't know you want to waste,

Random problem solving money,

Not forgetting Tips/bribery etc.

x+y-z= ?

[Surelynot]

No way this estimate of 10.9 million baht takes into account lady drinks!

[keith101]

33 minutes ago, sirineou said:

What does  $389,835 Mean ?

Is that to retire for the rest of your life?  at what age?  and  how many years would that last you. ?

 

Did you not read the post it tells you everything .

[sirineou]

4 minutes ago, Pilotman said:

Good question, as a number like that in isolation is meaningless without an explanation. Is it an annuity figure from a pension savings pot, or a combination of cash assets and annuity, is it income related? Does it include asset such as house (you have to live somewhere and that is a cost in cash or rent)   

Yea , I agree, It would had been easier in my opinion if they had stated in a monthly or yearly  income, As it was explained to me. The amount is for qn average of 14 years of retirement . So I guess  $389,835 translates to $2,320 per month , which is more than what I spend, But I have my house and car paid for. 

I also don't have that much in savings, but I have a pension and a social security income. 

[Airalee]

Is this all based on ZIRP?

 

Are they factoring inflation (or possibly even deflation) into their figure?

Edited March 2, 2021 by Airalee

[Surelynot]

39 minutes ago, sirineou said:

What does  $389,835 Mean ?

Is that to retire for the rest of your life?  at what age?  and  how many years would that last you. ?

 

I guess there are many sites you could visit (Hargreaves Lansdown is the one I use) that show you what happens to a lump sum invested in the stock market.

 

You can play around with rates of return, how much you intend to take out each month etc......can be quite frightening of you only have a smallish lump sum and no income.....it is a clear example of how money breeds money.

[Morch]

12 minutes ago, bolt said:

At first it may seem high, but its a reasonable amount for 14 years, it works out approx. 70K Thb per month

but 14 years seem a bit short for me.

 

Got to wonder if costs change much given older are, or an earlier start. Never accurately worked out how much I spend a month here, over years that is. My immediate experience tells me much less, but then they house is built and paid for, and wife's in no rush to change the car. Covid took care of traveling expenses. Still, maybe a nice (if not always useful) comparison between countries.

[sungod]

2 minutes ago, Airalee said:

Is this all based on ZIRP?

 

Are they factoring inflation (or possibly even deflation) into their figure?

I guess if you are worried about a few quid here and there then you dont qualify.....

[elliss]

59 minutes ago, VocalNeal said:

Oh dear.????

 

 The party is over .

 Time to call it a day ..

[Morch]

6 minutes ago, Airalee said:

Is this all based on ZIRP?

 

Are they factoring inflation (or possibly even deflation) into their figure?

 

Factoring on this causing a moderate steer among the the membership, more like.

[Pilotman]

25 minutes ago, sirineou said:

Yea , I agree, It would had been easier in my opinion if they had stated in a monthly or yearly  income, As it was explained to me. The amount is for qn average of 14 years of retirement . So I guess  $389,835 translates to $2,320 per month , which is more than what I spend, But I have my house and car paid for. 

I also don't have that much in savings, but I have a pension and a social security income. 

exactly 

[Pilotman]

28 minutes ago, keith101 said:

Did you not read the post it tells you everything .

no it doesn't 

[BritManToo]

1 hour ago, snoop1130 said:

The figures are based on someone living for around 14 years after they retire - with the average age of retirement in America (64) and the average life expectancy (78.7). The same calculations were then applied to almost every country. 

 

The study found that a person retiring to Thailand would need $389,835 in savings in order to maintain the same standard of living they were used to in the West.

That works out at 70,000bht/month.

I'm living a much higher lifestyle than back in the UK, as a family of four, on 40,000bht/month.

If I was living alone that would reduce to between 20,000-25,000bht/month.

 

I guess they were basing their figures on people living in Bangkok.

Surprised they list Cambodia and the Philippines as more expensive.

Edited March 2, 2021 by BritManToo