Study: Thais late starters in saving for retirement

[Lite Beer]

Study: Thais late starters in saving for retirement

BANGKOK, 20 September 2014 (NNT) – A study has found that Thais are late starters in saving for their retirement. The average age of those beginning the process of saving being 42.

According to Boonlert Jitmaneeroj, a research fellow at the University of the Thai Chamber of Commerce's Research Institute for Policy Evaluation and Design (RIPED), working people aged 40-60 years were surveyed in the study, about the financial aspects of retirement planning.

It was found that most people's savings were in the form of a savings account, which provided a low yield. The respondents were found to have been saving between 20-22 % of their income. It was found that civil servants saved more than those who worked for companies, due to the fact that they have to contribute to compulsory savings programs such as the Government Pension Fund.

Mr. Bunloet suggested that the government either consider extending tax benefits for those who save in the form of LTF or RMF funds, or establish its own fund to encourage people to save for retirement. Discontinuation of the tax incentives for LTF and RMF-type savings should only be done step-by-step, to avoid an abrupt end to savings being put into the LTF and RMF funds.

Meanwhile, Kesara Manchusree, President of the Stock Exchange of Thailand, asserted that tax incentives for savings put into LTF and RMF funds were beneficial to middle-income earners and also encouraged people to save for retirement.

-- NNT 2014-09-20

[Fred Flinstone]

Thais?

This is just propaganda -

Thailand is mostly Rural poor.

Can we Consider, that it is representative .?

Maybe of city folks ?

Edited September 20, 2014 by Fred Flinstone

[ratcatcher]

This is just propaganda -

Thailand is mostly Rural poor.

The majority of Thailand eats on the floor, or on surfaces raised above their farms.

Thailand is currently under Marshal law -

The idea is to discount majority in even accepting the survey.

The propaganda methods are standard .

Thailand may be comprised of many millions of rural people and many are very poor by western standards. Many live from day to day to day.

Offer a Thai 1000 baht a day for one week or B10,000 if they wait a week and most will take the B1,000 a day. Judging by the numbers of shiny new vehicles on Thai roads, I suspect many are in debt and many live from paycheck to paycheck.

If you live in a Bedrock village, in Nakhon Nowhere then I agree, most Thais traditionally eat seated on the floor. They are not familiar with place settings and dessert spoons being different from soup spoons.

There's an ocean of difference between Thailand's rich, mega rich and the rest of the population.

BTW are Barney and Betty Rubble taking care of their future savings plan? How are Pebbles and Dino?

[Suradit69]

Hardly a uniquely Thai problem. A pitiful few Americans have saved even $100,000 for their retirement. The whole concept of voluntary retirement is becoming out of reach for middle class Americans in future.

One of the reasons so many foreigners choose to retire in Thailand is because they can't afford retirement in their own country ... and a lot of them can't afford retirement in Thailand either.

[Rimmer]

Off topic post and quoted reply removed

[Doc46]

How the hell can they safe for retirement most people don't even earn enough money to pay their rent and other bills,Maybe provide an superannuation setup than maybe they can enjoy a decent retirement!!!!!

[loongdavid]

The Thai rural poor usually do not need to plan financially for their retirement as the 'family system' will take care of everything they may need in the future. I see many examples of this each and every day (too many to list here) and it works just fine. In my own family several members are approaching forced retirement (rice growers back) and are not, and never have been, concerned as to what the future may hold.

[Lukecan]

Saving 20-22% of income, only a select few in the west are able to achieve this .. People should take these thais as an example. Most people in USA can't even save 10% of their income.

Edited September 20, 2014 by Lukecan

[ratcatcher]

The Thai rural poor usually do not need to plan financially for their retirement as the 'family system' will take care of everything they may need in the future. I see many examples of this each and every day (too many to list here) and it works just fine. In my own family several members are approaching forced retirement (rice growers back) and are not, and never have been, concerned as to what the future may hold.

".........are not, and never have been, concerned as to what the future may hold. "

That's because, as a farang family member, you are possibly holding the future for them?

[loongdavid]

The Thai rural poor usually do not need to plan financially for their retirement as the 'family system' will take care of everything they may need in the future. I see many examples of this each and every day (too many to list here) and it works just fine. In my own family several members are approaching forced retirement (rice growers back) and are not, and never have been, concerned as to what the future may hold.

".........are not, and never have been, concerned as to what the future may hold. "

That's because, as a farang family member, you are possibly holding the future for them?

You didn't disappoint me ratcatcher I had a bet with myself that it wouldn't be long before someone said exactly what you have said. For the record, NO, I do not hold the future for them, I have on many occasions made that perfectly clear to all and sundry. However, realistically, as I have no-one to leave my worldly goods to someone will eventually benefit, and naturally, I hope that is later than sooner.

[AnotherOneAmerican]

In the west, stealing from people's private pension funds is so common, it's become hardly worthwhile.

Add to that, divorce judges giving any left away (in Thailand it would be a marital asset 50/50).

Add on that, Thailand is totally corrupt.

I would say spend it, while you can, (get yourself a Mia Noi if you have spare cash) and forget something way in the future.

Edited September 20, 2014 by AnotherOneAmerican

[Tokay]

Retirement for Thais means having children who will support them when they are old. Nothing wrong with that, but the majority of them certainly don't save for it.

End of thread.

[espinoza]

The Thai rural poor usually do not need to plan financially for their retirement as the 'family system' will take care of everything they may need in the future. I see many examples of this each and every day (too many to list here) and it works just fine. In my own family several members are approaching forced retirement (rice growers back) and are not, and never have been, concerned as to what the future may hold.

Thats the guys having daughters they can send to Pattaya and Pukhet to secure their life.

[NeverSure]

In the West we have safety nets. They may leave one in poverty, but the person won't starve.

In Thailand no one starves because there is food on every bush. (Insects 555)

In Thailand there is year around good weather and no need for heating bills and food grows year around.

I look at an Isaan shack and wouldn't want to trade, but I might if I was hungry.

[AYJAYDEE]

Unlike in the west, Thai's children are their retirement plan

[surangw]

how to save when there is not enough to save ?

[chainarong]

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This is just propaganda -

Thailand is mostly Rural poor.

The majority of Thailand eats on the floor, or on surfaces raised above their farms.

Thailand is currently under Marshal law -

The idea is to discount majority in even accepting the survey.

The propaganda methods are standard .

Thailand may be comprised of many millions of rural people and many are very poor by western standards. Many live from day to day to day.

Offer a Thai 1000 baht a day for one week or B10,000 if they wait a week and most will take the B1,000 a day. Judging by the numbers of shiny new vehicles on Thai roads, I suspect many are in debt and many live from paycheck to paycheck.

If you live in a Bedrock village, in Nakhon Nowhere then I agree, most Thais traditionally eat seated on the floor. They are not familiar with place settings and dessert spoons being different from soup spoons.

There's an ocean of difference between Thailand's rich, mega rich and the rest of the population.

BTW are Barney and Betty Rubble taking care of their future savings plan? How are Pebbles and Dino?

Well Thailand is like the rest of us , latest out of OZ 63% of Australian households out of money before payday , which is every 2 weeks. How can you save on that.

[catweazle]

What a surprise for a pretentious selfie-addicted society that never thinks or plans any further than the way from hammock or mattress to the fridge, TV and smartphone...

[godden]

Noi, i retire next week, go find a falang job done.

[Jonmarleesco]

Thais aren't alone in being dilatory in saving for retirement. But given the global pensions crisis, which is hardly a recently discovered calamity-in-waiting, successive Thai governments have, themselves, been dilatory.