Timing of Retirement: Any benefit clocking up 10 years in Thailand?

[dinga]

G'day

I am turning 59 shortly and figure it's time to put the cue in the rack. I've been working for the same Thai company since early 2004 and was thinking about finishing there at the end of December 2013. Is there any reason/benefit for me to postpone my finish date for 3 months (March 2014), in order to clockup 10 years service (rather than the 9 years 9 months)?

Tks

[gamini]

none whatsoever.

[ktm jeff]

Unless you have a pension with them that is "final salary" based or 10 years takes you to a higher pension level , then no benefit - unless it means you get a better present - LOL. Good luck.

[PattayaPhom]

Dont forget about health insurance....at 59 its quite expensive

[BrianCR]

If he's worked for a company the chances are that he will have Thai SS - at 60 he will receive a complete refund of his subscriptions and his monthly payment rate will fall. As long as he pays the new rate (420 per month I think) he will have FULL health cover for life

[fletchsmile]

Yes it can have an impact in several areas, eg:

From a pension perspective, some schemes require 10 years service to obtain the maximum entitled. Below that it is reduced for number of years service. So worthwhile checking with your HR team

If you are due a lump some for any reason, it could be in your interests to wait another 3 months, (also depending on other income you have) The reason being is that you would be entitled to a full year's tax relief and allowances even though you only worked til March. Also, if you have worked for 12 months and add it on to that, and it is taxed at your marginal rate, it is likely to be taxed at a higher rate than if you add it on to only 3 months and tax at marginal rate next year.

Also even on your basic salary if you work only 3 months in a year, you still get the full year's allowances, so your effective rate of tax will be lower. eg if you earned 400k a month that puts you in the top tax bracket, as you exceed the 4mio a year. If you work only 3 months x 400k = 1.2mio you will be in a much lower tax bracket if no other significant income, so will have 3 months extra pay with much lower tax rate.

Talk it thru with HR/ the accounts people in your company

Cheers

Fletch