Thai Life Insurance / Tahi Pension

[GingerLing]

The life insurance products that I've seen in Thailand have a payout at the end a bit like a pension. Is there any distinction between the two in Thailand, my wife was saying that 'Life Insurance' products are the equivalent of UK Pensions, i.e. long term saving plan with benefits.

[loverboy44]

Yes.

Adtionally you can deduct up to 50000 baht a year from your income tax.

[cocopops]

Yes.

Adtionally you can deduct up to 50000 baht a year from your income tax.

Same product that is called "whole life insurance" where I'm from. One key issue is what happens if you want to cancel it early. Some companies take this opportunity to fuc_k you over pretty badly...

[GingerLing]

Yes.

Adtionally you can deduct up to 50000 baht a year from your income tax.

Do you have a UK pension in addition to a Thai Life assurance product? Or did you transfer your pension to a Thai policy?

[rgs2001uk]

I'm not being funny, but do you or your wife actually know what the other is talking about?

Life insurance policy in Thailand the same as a pension?

Sorry if I was you I would head back to the UK and seek indepandant finacial advice.

Tx a pension to a Thai policy, sorry, this doesnt compute.

I wont get personal but from what you have posted you seriously need to make sure you understand your needs, if not get someone who can explain it in plain English.

Please ask your wife what are the benefits?

Does your wife actually understand what a pension is?

The life assurance policies you talk of aint worth the paper they are written on, better deals to be had elsewhere.

What is it you actually want?

If you answer that maybe we can help.

[GingerLing]

I'm not being funny, but do you or your wife actually know what the other is talking about?

Life insurance policy in Thailand the same as a pension?

Sorry if I was you I would head back to the UK and seek indepandant finacial advice.

Tx a pension to a Thai policy, sorry, this doesnt compute.

I wont get personal but from what you have posted you seriously need to make sure you understand your needs, if not get someone who can explain it in plain English.

Please ask your wife what are the benefits?

Does your wife actually understand what a pension is?

The life assurance policies you talk of aint worth the paper they are written on, better deals to be had elsewhere.

What is it you actually want?

If you answer that maybe we can help.

Hi rgs2001uk,

Perhaps my vague question has given you the wrong impression, I'll try and clear this up, sorry to aggravate you further

Background: I run a software company and understand competently UK Pensions, TAX etc. I ran our company scheme as a Trustee with our Tax Advisors Smith & Williamson. Now I have a SIPP (obviously me personally not part of the company pension scheme) with Standard Life setup by my IFA (Smith & Williamson), in which I manage the funds. One of the associates at Smith & Williamson and I were discussing future planning for my pending move to Thailand and he cited an opportunity to transfer the pension to an alternative TAX jurisdiction. They had recently transferred the pension of one individual to another country, where the pension rules were different, such that rather he could take 100% of the pension at 55, rather than only 25% as in the UK and then tied to an annuity or an ASP. My bank, HSBC of which I'm a private client, don't provide such services in Thailand although they do operate there.

My Problem: from the few people I spoken to, which is why I'm asking here, is that there is apparently no Thai equivalent of Pensions in terms of government (or FSA equivalent) regulated savings. Perhaps they are wrong. Mostly I keep getting told pensions are life insurance in Thailand, which on the face of it sounded odd to me.

My Question: I am looking to be corrected and told Thailand has pension products, and what the basic rules are. Also has anyone Tx their UK pension to such a Thai regulate product?

Any light you can shed on the matter would be most welcome rgs2001uk.

Edited October 1, 2009 by GingerLing

[rgs2001uk]

GingerLing,

thanks for explaining in more detail, certainly clears things up and makes it easier to point you in the right direction.

I take it you are talking about QROPS, the problem you may face is, the Overseas Scheme is specifically designed to enable non-UK resident individuals, who have accrued pension assets in the UK, to transfer these out once they are deemed no longer a resident of the UK. Provided that a UK Registered Pension Scheme and an Overseas Scheme have the appropriate transfer out and transfer in powers respectively, individuals who leave the UK and become a member of an Overseas Scheme, are able to request a transfer of their UK pension assets.

Highlighted in red, may be a problem, if you can even find such a scheme in Thailand.

The subject of QROPS has been discussed before, and details concerning the pros and cons of embarking on such a venture, everyone's needs will differ.

I concur, with your comments,"My Problem: from the few people I spoken to, which is why I'm asking here, is that there is apparently no Thai equivalent of Pensions in terms of government (or FSA equivalent) regulated savings. Perhaps they are wrong. Mostly I keep getting told pensions are life insurance in Thailand, which on the face of it sounded odd to me."

I also am with the HSBC, I will converse by pm further my experiences with them should you wish, fell free to pm me.

As far as I am aware there are no pension products available in Thailand, suitable for the likes of you and I.

[GingerLing]

GingerLing,

thanks for explaining in more detail, certainly clears things up and makes it easier to point you in the right direction.

I take it you are talking about QROPS, the problem you may face is, the Overseas Scheme is specifically designed to enable non-UK resident individuals, who have accrued pension assets in the UK, to transfer these out once they are deemed no longer a resident of the UK. Provided that a UK Registered Pension Scheme and an Overseas Scheme have the appropriate transfer out and transfer in powers respectively, individuals who leave the UK and become a member of an Overseas Scheme, are able to request a transfer of their UK pension assets.

Highlighted in red, may be a problem, if you can even find such a scheme in Thailand.

The subject of QROPS has been discussed before, and details concerning the pros and cons of embarking on such a venture, everyone's needs will differ.

I concur, with your comments,"My Problem: from the few people I spoken to, which is why I'm asking here, is that there is apparently no Thai equivalent of Pensions in terms of government (or FSA equivalent) regulated savings. Perhaps they are wrong. Mostly I keep getting told pensions are life insurance in Thailand, which on the face of it sounded odd to me."

I also am with the HSBC, I will converse by pm further my experiences with them should you wish, fell free to pm me.

As far as I am aware there are no pension products available in Thailand, suitable for the likes of you and I.

Brilliant, thanks very much for your answer and offer to pm you. I'll drop you a pm now.

[samran]

The life insurance products that I've seen in Thailand have a payout at the end a bit like a pension. Is there any distinction between the two in Thailand, my wife was saying that 'Life Insurance' products are the equivalent of UK Pensions, i.e. long term saving plan with benefits.

What many sell as 'life insurance' policies are really second rate savings plans with shabby interest rates, if anyone ever bothered to do the maths. Not the eqivalent of the pension at all, nore should the be considered any type of real insurance at all. They are expensive for what they are, and offer measly pay outs in the event of death, when compared to other international life insurance. Most government employees have their own pension scheme, and increasingly, so do private sector companies.

All workers in Thailand are able to contribute to private mutual finds, called Long Term Funds or Retirement Mutual Funds, before tax which invest in shares, bonds etc. These are the closest things you'll get to a pension here. They are available from all the major banks, as well as companies such as ING Thailand and Aberdeen.

[aurelius]

Long Term Funds and Retirement Mutual Funds, as well as the insurance products being sold by banks, are one-time pay out products, so nothing like a recurring pension payment. The reason some people like this type of insurance product is that they get something back at the end (when they are still alive), compared with the traditional policies which only pay out on death.

Thais will use this type of product to force themselves to save for a lump sum for a kid's education or similar; with the added benefit of life protection thrown in. Good products have IRR around 3% at the moment, which in the current economy is not bad; tho' I will be the first to admit that current interest rates are not a relevant benchmark for the market in 3-5-10 years.

[loverboy44]

Don't talk the Thai life insurancies so bad.

They, as in every country, give people the possibility to first give security in case of death for the family, and second, in case of life, a not too bad interest rate for the living. Surely it will not give the interest rates Lehman offered . Companies like AACP, Thai Life, etc, have to invest more conservative.