Expat Pension Options

[Norrad]

Lately, I've been thinking alot about preparing for the future and pension options in Thailand. Are there any options available to Foreigners? I want to try and get all my ducks in a row, regarding pensions, insurance etc.

[GuestHouse]

You are right to start thinking about these things while you are young, but I would not choose Thailand as the host for your pension savings.

I'd start by looking at your home country first, not least because it is very much more likely to provide you with a raft of financial protections not available in Thailand.

If you are British you may want to look at trustnet.com as a good point to find information on a wide range of investment products. You might also want to consider investing in Unit Trusts, or Investment Funds rather than directly into a Pension Fund.

I say this because the big advantage of a pension fund in the UK is that if you are tax resident your pension fund will be eligible for tax breaks (increasing your investment with a tax refund on your contributions).

Under normal circumstances if you are not tax resident you will loose these tax benefits.

If you are not getting these benefits then investment in Unit Trusts and Investments funds may be more attractive (they almost always have lower management costs than pension funds).

This last few years I have been supplementing pension savings by saving with Jupiter , I have been extremely happy with their performance.

Company Pensions

If you are employed in Thailand by a multinational enquire if you can join their out of Thailand pension scheme. Company pensions are almost invariably a bargain.

State Pensions

If possible consider remaining in your home country pension scheme. The UK state pension scheme allows you to continue paying contributions from overseas, and is perhaps the best pension bargain on the planet.

Insurance

At your age life insurance is dirt cheap, it will get more expensive as you grow older (almost hyperbolically so)

There are merits in taking out a life long policy with a substantial pay out (in today's terms) that will provide your family with financial security and will be available as an existing insurance for mortgage protection later in life.

Caution

I would be very cautious of any local expat investment advisors, the financial industry has a sordid history of criminality, fraud and mismanagement.

If you need offshore investment services these are readily and cheaply available in the UK with all the benefits of UK legislative protection not just of the products being sold to you, but legislation governing those who sell you the products.

Edited May 21, 2007 by GuestHouse

[lanny]

I would agree with GuestHouse about local financial advisors - in general. However, I have a couple of friends who are investment advisors that I believe are honest and very knowledgable. These people charge a fee for their services and do not sell you anything. Since they have nothing to gain from any advice, they can be fully objective. They are American, not British, but have extensive experience in international financial markets.

PM me for their contact information.

[samran]

If you are an Aussie, then I'd set up a super fund back in OZ. One of the bargains of bargains I have is to have my life and disability insurance deducted out of my Super contributions. It means that the payment is done out of my pre-tax income (for any Australian earned income). I've got mine with AMP.