How many millions of baht does one need to retire in Pattaya?

[Pattaya57]

He needs 800k baht to retire in Thailand, along with about A$700,000 (US$470,000) invested at 5% which will replenish his 800k baht every year

 

If Aussie, he obviously needs far less $ invested when he turns 60 and can get his superannuation as tax free income

 

[jacko45k]

15 minutes ago, Pattaya57 said:

He needs 800k baht to retire in Thailand, along with about A$700,000 (US$470,000) invested at 5% which will replenish his 800k baht every year

400k baht of which cannot be touched. Probably better with the monthly transfer from abroad 65,000 THB in your scenario, 

[Ben Zioner]

2 hours ago, kinyara said:

A decent health insurance policy should leave a disposable income after a few other fixed annual costs of circa 90k baht a month, I can live a heathy lifestyle that suits me on a 1/3 of that so plenty to look forward to.

 

OP wants 9 ST a month, so that caters for your 30k... 

 

And what's the point of being poor in Pattaya?

[noobexpat]

9 hours ago, JimTripper said:

I think it's safe to say not many expats in pattaya have 800k pounds, at least not the ones I know.

 

The bar is set rather low here. 

If i'm comparing myself, i wouldn't be using that demographic - although not many at my age anyway. I get to see lots of people's (western) finances in detail.

 

I'm not saying you need huge amounts to live a happy life here, which admittedly, may sound a bit contradictory. 

[noobexpat]

10 hours ago, Keeps said:

£800,000 should comfortably generate 100,000 THB per month without reducing the capital amount to any large degree (obviously subject to market fluctuations). Just depends on how much per month somebody needs.

 

As a general rule of thumb, dependent on your capital being invested (and doesn't need to be in anything too risky) you should be able to generate/spend 4% per annum of capital without ever running out of capital. In fact, it shouldn't even reduce greatly over time. Inflation will need to be taken into consideration though along with tax. 

 

You need to be invested. So what about sequence risk?

The biggest threat to me as a 48 year old expat is inflation. 100k a month when i reach state pension age may only be worth 50k, then at age 88, only 25k - which is not far off my rent now! 

 

Then exchange rate risk. Its been 40 to 45 in the 1.5 years i've been here.

 

Capital spend on any health issues.

 

People laugh when they hear absurd numbers but they are in their 70's so none of this applies. They see inflation as 10 baht on a beer, i see it as quadrupling my current rent.

 

Yeh i'm aware of ISA and SIPP's, but thanks anyway. Run my own business in the wealth management space (remotely )

 

[kinyara]

23 minutes ago, Ben Zioner said:

 

OP wants 9 ST a month, so that caters for your 30k... 

 

And what's the point of being poor in Pattaya?

 

Yeah I understand that, my scenario is that I would have the difference between my expected 90k a month to my minimum comfort zone of 30k - i.e 60k extra discretionery free budget to spend as I see fit, which gives me a really comfortable lifestyle certainly not poor even if I was spending half of the spare 60k on ST's like the OP

[moogradod]

Absolutely depends on your lifestyle and where and how you live. Alone or with a wife and children(if you have none of these - just wait), even probably further family members. They tend to take more than to give. And as you are getting older your money spent for the hospital will surpass money spent in the bar or eating out. Do not underestimate the hospital bills - I speak from experience. Plus inflation. Plus tax. Unfortunately.

[retarius]

A lot. I had what I thought of as a huge oversupply of cash, but that was back in 2008. After inflation etc and huge cost of living rises, enormously expensive cars, electronic and electrical appliances, shoddy work done by contractors building my house, and purchases etc AND much lower than expected cash from US assets that I held (eg I bought six acres of land for $260,000 in 2003, and sold it in 2011 for $112,000 because the property taxes were killing me....I had of course valued the land at $260,000 in my calculations when I retired).

My advice would be make sure you have 100 million baht (taxes already paid) if you wish to live comfortably in a nice house, never wish to worry about money or paying your medical bills, wish to drive nice cars (3 million baht+ vehicles), empty staff to make your life easier, fly business class, and DON'T PLAN ON LIVING FOR MORE THAN 15 to 20 years.

I have a nice life for about 300-350,000 baht a month, including all medical exepenses (I had none until last year, but spent 1 million + last year).

Thailand for me at least is not a nice p-lace to live if you are poor. Whiskey (rum), local beer, local cigarettes, local food, hotels and labour are very cheap, everything else is crazy expensive and inflation is astronomical despite what the government says. A European or UDS lifestyle is very expensive as all imported foods as crazy prices. 

[advancebooking]

10 hours ago, Keeps said:

£800,000 should comfortably generate 100,000 THB per month without reducing the capital amount to any large degree (obviously subject to market fluctuations). Just depends on how much per month somebody needs.

 

As a general rule of thumb, dependent on your capital being invested (and doesn't need to be in anything too risky) you should be able to generate/spend 4% per annum of capital without ever running out of capital. In fact, it shouldn't even reduce greatly over time. Inflation will need to be taken into consideration though along with tax. 

 

Personally, I have my SIPP which I can drawdown on if required (I am now 55 years old). During my "saving" years I built up a healthy pot within a Stocks and Shares ISA rather than just going down the pension route. This is withdrawn tax free in the UK. I can in theory take up to my personal tax free allowance from the pension and top up the income from the ISA, also tax free. Tax of any significant amount will only come into play when I get my state pension which is some 12 or 13 years away.

 

I have heard of it referred to as the 25 rule. Work out what you need per year and multiply by 25. That is the pot of money you will need to generate your required monthly income. 

do you hold any btc or ethereum?

[brewsterbudgen]

17 hours ago, Pattaya57 said:

I would give a serious answer except OP included how much he would need to pay his illegal prostitutes twice a week...thought there was no talk allowed about prostitution on this forum?

 

 

Fortunately (for the OP), paying for sex is not illegal in Thailand.

[retarius]

3 minutes ago, advancebooking said:

do you hold any btc or ethereum?

 

2 hours ago, Pattaya57 said:

He needs 800k baht to retire in Thailand, along with about A$700,000 (US$470,000) invested at 5% which will replenish his 800k baht every year

 

If Aussie, he obviously needs far less $ invested when he turns 60 and can get his superannuation as tax free income

 

You can't get 5% on a savings account here ( and you must keep the 800,000 in an instant access local savings account). Replenshing it from abroad will attract taxes from 1/2024.

[advancebooking]

9 minutes ago, brewsterbudgen said:

 

Fortunately (for the OP), paying for sex is not illegal in Thailand.

Its not for OP. Its OPs 'friend'. Please read the post again

[Pattaya57]

I always find it pretty silly when someone asks how much money they need to retire. How would strangers on a forum know what your spending habits are as everyone is different. Some are comfortable paying 1000 baht for a meal, others won't go near a place that has 250 baht meals. Some don't drink, others drink 15 beers every day, others only drink more expensive spirits, some like splashing cash on ladies, others don't etc, etc

 

When I retired I owned my own condo and based on my holidays in Pattaya I budgeted 100k spending money per month. Fact is that living here life becomes 'routine' and I rarely spend more than 30k a month (I don't splash cash on ladies)

 

Buying a condo was the best thing as I have no rent and it includes cable TV, wifi, Gym, Sauna and 3 swimming pools to relax without spending any baht (it would rent for 40k)

 

[scoobyguy]

1 hour ago, Ben Zioner said:

 

OP wants 9 ST a month, so that caters for your 30k... 

 

And what's the point of being poor in Pattaya?

Man you must be butt ugly if your an xpat and paying over 3000B shortime.

[Henryford]

Rule of thumb i would say is 1 million baht a year. Upto 85 say 30 million. But of course it depends on how much rent he pays, how much he pays for P4P and his health long term. Rather than pay 30k a month for rent for 30 years (11 million) i would buy somewhere 3-4 million.

[PoorSucker]

18 hours ago, proton said:

Having to have sex twice a week, I feel sorry for him. Id almost pay not to have it. Daft question of course.

You pay them for leaving.

[advancebooking]

13 minutes ago, Pattaya57 said:

I always find it pretty silly when someone asks how much money they need to retire. How would strangers on a forum know what your spending habits are as everyone is different. Some are comfortable paying 1000 baht for a meal, others won't go near a place that has 250 baht meals.

The spending guide was provided in the OP. Please read it properly before you next make a comment. 

[Pattaya57]

19 minutes ago, advancebooking said:

The spending guide was provided in the OP. Please read it properly before you next make a comment. 

You have to be kidding if you think that is a comprehensive spending guide. Doesn't even say if he drinks or if he visits gogo's, beer bars or beach road for his ladies (huge difference)

 

How much does he spend on clothes, does he want to travel, does he want a flash car, does he eat lunch as that is missing from OP as well 😉

 

[WhatsNext]

Calculations are quite simple, and many people here overestimate the amount needed :

1 Million US for 30 years against 5% will give you 5345 USD per month or 187,075 Baht.

 

That's way too much so you can make savings on that amount for later inflation easy peasy.

So even without a pension, 35 Million Baht would be more, more than enough.

 

I am 59 myself, have a new pool villa, a new SUV, a live in GF and spend less about 1 million baht per year.

That is with the house and car paid for of course.

[Pattaya57]

9 minutes ago, WhatsNext said:

Calculations are quite simple, and many people here overestimate the amount needed: 1 Million US for 30 years against 5% will give you 5345 USD per month or 187,075 Baht.

Your calculations a bit off?

5% on 1 million gives 50k a year or 4167 a month, which is 146k baht per month. Still more than enough for most as you say 

 

[Sandboxer]

THB 1m per year of life MINIMUM, so 35m/US$ 1m+

 

I'd say THB 50m would be a somewhat reasonably safe figure given he sticks to the script and doesn't do anything stupid.

 

Correction: make it THB 100m - he sounds like a retard for even asking, so I'm adding moron insurance.

[Will B Good]

It all depends on wether you intend buying lady drinks.....they are a killer, financially.

[advancebooking]

33 minutes ago, Pattaya57 said:

You have to be kidding if you think that is a comprehensive spending guide. Doesn't even say if he drinks or if he visits gogo's, beer bars or beach road for his ladies (huge difference)

 

How much does he spend on clothes, does he want to travel, does he want a flash car, does he eat lunch as that is missing from OP as well 😉

 

Dont cry on your pillow tonight. The guide is there. Next time read the post properly. 

[Chivas]

Some of the answers are just off the scale bonkers on this thread.....

Too much assumption that a regular holiday spending will still be the same 52 weeks of the year

 

My earlier post which was just shy of 5000 Baht a day certainly could be spent 365 days a year but in reality at that level you'd have to be boozing daily and death would curtail any long term plans !!

 

I just came back from 2 month trip and including Hotel I was shy of 3000 a day because  I have "nights off"

 

Surely if you've dropped anchor anyone would be the same

[Pattaya57]

8 minutes ago, advancebooking said:

Dont cry on your pillow tonight. The guide is there. Next time read the post properly. 

So you obviously know all that's required to retire in Thailand which you've apparently stated in the OP, so why are you asking for advice?

[sidjameson]

1 hour ago, PoorSucker said:

You pay them for leaving.

So you mean if you don't pay they would stay for free? 

[sidjameson]

Keep it simple. 

How much does his life cost in home country?

Use same budget here and you'll get a much higher standard of living, except for the richest few or the poorest few.

Reduce home budget by a 1/3 for same lifestyle as home in a Thai style or increase by a 1/3 and the retiree would feel they were relatively balling it.

[Celsius]

17 hours ago, quake said:

 

You can combined the two in this town if like.

Water sports are a go as well.

 

 

Yes. Exactly. 

 

Now everyone here paying those lovely ladies for entertainment should ask themselves how many Arabs and Indians did just that to the lovely lady you are renting out 

 

Puke 

[WhatsNext]

1 hour ago, Pattaya57 said:

Your calculations a bit off?

5% on 1 million gives 50k a year or 4167 a month, which is 146k baht per month. Still more than enough for most as you say 

 

 

No not off, is it's inclusive eating the principal, many people forget that. Your last suit doesn't have any pockets to take the money with you.

[sampson]

21 hours ago, advancebooking said:

Im sure that this is the first time that this topic has ever been discussed on this forum. 

 

A friend aged in mid 50s last night asked me how many thai baht (millions) would one need to retire in Pats based on:

- 30k rent a month

- Aged mid 50s with ok health at the moment. 

- Belongs to the govt SS system and thus free hospital treatment at govt hospital 

- Sometimes visit private hospitals for minor treatment. eg sucking out ear wax at ENT dr. 

- Preparing own breakfast at condo

- Dinner at average price restaurants eg Kiss restaurant on 2nd road near soi 10

- 2 x P4P (pay for play) ladies ST per week. 

- 2 x Massage per week. 

 

I told him about 35 million if he lives to 85 yrs old. What do you think? Im sure theres many old guys who can help with this financial assessment. 

30k a month rent is a lot in Pattaya unless he's going for something fancy. Most 1 bed apartments are between 8 and 15k.  

 

It's funny how on the internet most people claim to have a champagne budget and try to convince you that you need one too, but on the ground all across the places I've stayed in Thailand most people are living off 40-70k baht per month, usually as a couple and happily enough. 

 

Your friend sounds like he could do it on 60k to me.  There's only one way to find out and that's do a 6 month stint starting as you mean to go on and see what the damage is.

 

Keeping a lump sum in the bank and eroding it is a bad idea though. Best to turn it into a regular passive income and live off that, this may also help with budget management and negate those terrible ideas people have in their first 1 or 2 years in Thailand, usually involving the transfer of wealth to a lady.