Retirement in Thailand, Some quetions and Thoughts....

[timendres]

To the OP.

With 800 to 1000 GBP coming in each month and your house in Korat, you could do it, except how much of the 800-1000 will you need to leave in the UK each month to cover unforeseen expenses relating to your UK property?

800 GBP is about 40,000 THB. I couldn't live on that, but then I live in Bangkok and I'm a young guy who wants to go out to the high end bars and clubs frequently. You living in Korat could probably manage it quite easily.

1000 GBP is about 50,000 THB. That would still not be enough for my lifestyle in Bangkok, but it would make life in Korat in your own paid home quite comfortable I would think.

There is a lot more to living here, but you've been here a lot, you have a Thai wife and a house, so it sounds like you are quite well set.

The only major issue you must be aware of is your income is dependent on exchange rates. I'd worry more about that in the future.

The other thing, which Kenk24 mentioned, is boredom. I could *never* live outside of Bangkok, not being in a city with all the facilities and people to go out with etc would drive me insane.

Best of luck!

You forgot to mention that a real estate company charge between 10-15% to look after the rented house, when the OP is living in Thailand, plus there is tax to pay on the income too.

I have no idea what charges the OP might have to deal with, perhaps he rents his home out himself without an agent....

As for Tax, if he rents it out privately maybe he can get away with not declaring that income.

But I don't pretend to know about UK tax.....

Very good points in these replies. Taxes, costs, etc., are bound to be greater than you anticipate. What would scare me the most is the exchange rate. Having seen the round trip of the USD from 44 B/$ to 28 B/$ and back to 35 B/$, this is a serious consideration over the long run. Fortunately, the exchange has been going our way lately, and I don't see that reversing in the immediate future. Long term.... you need a crystal ball. However, I think it will be favorable between now and your 55th.

[SpokaneAl]

It is important to look at the bigger picture when considering retirement . . . .

For several decades leading up to 2008, conventional financial wisdom was based on a 7% annual return from a moderately conservative investment strategy. Seen that kind of ROI lately?

Someone put up a history of my condo building on the building's website. During the 1997 Asian crisis, many owners had mortgages on condos that they couldn't pay because their income was reduced. During the fire-sale that ensued, condos were going at bargain-basis prices:

"after the (1997) crisis it was impossible to sell even at prices as low as 8,000 Baht per sq metre. Many of the units had been bought with bank loans and the owners found that they owed twice as much to the bank as their unit was worth. Many owners simply stooped paying on their loans. The owners either abandoned their units or simply left them empty."

We are again in very uncertain times . . . .

Central Banks worldwide are using "tools" that have no historical precedent in a so-far failed attempt to revive the world's economies. Europe has now adopted negative interest rates, because nothing they have tried up to this point has had any positive, lasting effect. Look for more use of financial repression in the future as misguided economic policy attempts to control what can't be controlled. The Central bankers do not have a clue about what's going on, which can be seen from their record of continually misunderstanding the economy. For example, prior to 2008 Greenspan saw no problems on the horizon, and Bernake proclaimed that the housing crisis was "contained", and then we fell in to a mini-depression from which we have yet to recover.

So where are we headed, and what to do?

The global economy has slowed down significantly. There are bubbles in junk-bonds, student debt, car loans, and again forming in housing. Near-zero interest rates have ruined many retirement plans and pension expectations. Debt is out of control worldwide. Normally calm economic commentators are expressing serious concerns about the future. This isn't just normal business cycle fluctuations -- there are serious underlying forces that are getting worse, not better.

Some people say you can't predict the economy, and there's some truth to that. We may not know what day the avalanche is going to occur, but we can see the snow piling up on the mountainside, and we know it's going to happen sooner or later. Right now, the economic snow has built up to record levels, and 2008 was just a taste of what might lie ahead. When the next avalanche comes, everybody is going to get poorer . . . think Greece but on a global scale. And that's the best possible outcome. So my recommendation for those nearing retirement is put away far more savings than you think you will need. Diversify, and do not invest too heavily in anything that depends on another party holding your wealth with a promise pay it back, which includes banks, stocks, bonds, annuities, pensions, governments. You can have some of that in your portfolio, but better to invest in land, buildings and businesses that will hold their value when everyone gets poorer. If you want to prepare for the worse-case scenario, buy a farm in a farming area, and learn how to garden and raise chickens.

All of these comments are spot on, in my opinion. Unpredictable times ahead for sure.

All the more reason, also in my opinion, to enjoy time here before it might become an impossibility.

Members here often complain about Thais living for today with no concern for their future, which is a perfectly valid observation. But I would counter that Farangs often spend too much time planning the future at the expense of enjoying today.

As always, I have no idea where things are going, but do agree, again as always, these are unpredictable times. For that reason I would recommend saving more than you think you might need, spend less than you earn.

Hope for the the best and plan for the worst.

[HampiK]

At the end only you can make the decision. What you have to think of is: is the 800-1000£ after deduction of repair costs and service carge to a real estate company who take care your house?

If it would be me.. I would say it is not enough especially with a exchange rate you can't know what will come in future.

My retire plan is also to retire as soon as possible, but not without less than 80'000 baht per month. And I not want a risk of exchange rate as well or at lest not for the complete amount of money. Additional to my plan the 80K is exclude of rent.

In my case the most expensive parts are:

• Health Insurance (Everybody who say i never needed one and I am healthy.... Tomorrow you can have an accident or something bad and your hospital bill will be 2-3 million baht)
• Vacation and hobbies (I not want sit in a bar or in front of the TV 20 hours per day
• Food (I like thai food very much, but still want to eat sometimes in a restaurant in a shopping complex

OK. I am staying in BKK so my expense are for sure higher than these from the OP.. but if I would live countryside I think I would become bored too much and want go somewhere more often, which also costs some money, because need to pay an hotel. In Bangkok many complain as a big city which is overcrowded.. but I like to have the choice to do what i desire... This could be a restaurant a small park, a cinema, meet some other expats (maybe, not sure about this yet).

[champken]

800 pounds a month is more then enough. i spend less that and i'm not on a budget.

I'm the same and i have a kid in a Thai private school to pay for. It amazes me how much some people say they need to live on here.

The one possible spanner in the works for me would be a sudden accident or illness which in my case because I self insure could prove quite costly.

[chiang mai]

I started keeping detailed expense records for the first time last year, mostly I was curious to see exactly where my money went to each month and in what proportions. What came out of looking at thirteen months of detail is that my wife and I spend 35k baht a month to live, not on a restricted basis but to live the way we want to live which we think is very comfortably. Now indeed we do spend much more than 35k each month but that is money that is spent on house/garden projects, staff, travels and otherwise, discretionary spending. I would never have guessed it costs us so little to live here.

[sandmike]

Scooooby ... house rental .... my house is rented in the uk, and in the last 8 years rental income has increased from 700 to 800 per month. Expenses (agent, leases, insurance, repairs, and general upkeep ) as a percentage of that annual income is as follows ... 32, 20, 23, 41, 78, 42, 73, 27. The house has been fully rented for that time. The house was built in 1982.

So please be aware that your bills can get very expensive, and you will not have the kind of net income that you seem to be thinking of.

I think working the extra years and getting some more money together is the way to go .. I'm in a very similar position but a few years older, and I'm working for another 2 years for some more money in the pot.

Cheers, SM

Edited March 2, 2016 by sandmike

[scoooooby]

I really do welcome all the feedback and there seems to be a big divide on those who seem to need 80K min per month and those who can seem to have a reasonable existence at 35-40K per month...... The key factor throughout is healthcare and its right that I factor this in so will check up on some reasonable cover..... my earlier post also mentioned the need to NOT rely on a state pension, and how true that seems to be with the latest media reports today that the UK government are looking to move the male retirement age from 67 to mid seventies for the guys who are now starting there working career..... !!!!!!

Will now spend some serious thinking time but will try to be patient here to stomach the working cycle and bank more savings and increase the pension pot BUT if this becomes too much then that bag will be packed for sure hahaha.......

Loving the forum and the array of different topics that cheer me up every day cheers

[louse1953]

Don't pull the pin too early,you can't have enough money.Too late to go back later.

[HampiK]

I really do welcome all the feedback and there seems to be a big divide on those who seem to need 80K min per month and those who can seem to have a reasonable existence at 35-40K per month...... The key factor throughout is healthcare and its right that I factor this in so will check up on some reasonable cover..... my earlier post also mentioned the need to NOT rely on a state pension, and how true that seems to be with the latest media reports today that the UK government are looking to move the male retirement age from 67 to mid seventies for the guys who are now starting there working career..... !!!!!!

Will now spend some serious thinking time but will try to be patient here to stomach the working cycle and bank more savings and increase the pension pot BUT if this becomes too much then that bag will be packed for sure hahaha.......

Loving the forum and the array of different topics that cheer me up every day cheers

One short additional comment on my 80'000.

This not mean i need to have the 80K, but over the years the living will become more expensive, the health insurance will for sure become more expensive. And you also need to safe some money every month for some unseen problems.

So if you need 40'000 baht at the moment, how much you need in about 10 years? And your Health insurance probably have a deductible, which you have to take in account as well..

I would say if you can life with 40'000 at the moment I would calculate 60'000. You never can be safe.. but a small additional money should be available.

But on the other site like some of the Boardmembers write.. you never can have enough money.. that is only true half way, else you would work till you die... because even you have millions you could have more... So the big questions is when is the right point to take the risk.

I wish you good luck.

[Foozool]

You are already married to a Thai lady, and your wife has a home here (paid for)....so what else is to know. You seem already briefed on the subject.

Bar hopping and bargirl jumping is not what you are after...and you have free rent. I would only worry about health/auto insurance...and then you are home free.

Retirement here is like anywhere else...if you don't have hobbies or friends, then it can get slow. I like it though. Gardening, eat out and some decent places, go out on the town once a week.....some parties at home....and alot of traveling. Traveling for 4 day cost me 20,000, so we no longer do that very often. (Hotel, meals, gas, shopping).

I know bored people who retired back home, and I think I am better off here...for the money.

You need a minimum of 40,000 baht a month...or you will be disappointed, I think. Your wife may need quite a bit more...for the relatives.

Yes, if you want to live like a king (like some people do) you better never come to Thailand, because of your financial condition. But if you just expect to live in a quiet place far from big cities, it is not to shabby (many farang living on low pension) to have a simple life just like most Thai people (cook at home and save which is actually more healthy to me rather than eating out and end up to hospital by food poisoning).

Not much fun, not much beer, no Go Go bars, just a simple life.

It is possible. All depends on you and your expectations.

[Foozool]

You are already married to a Thai lady, and your wife has a home here (paid for)....so what else is to know. You seem already briefed on the subject.

Bar hopping and bargirl jumping is not what you are after...and you have free rent. I would only worry about health/auto insurance...and then you are home free.

Retirement here is like anywhere else...if you don't have hobbies or friends, then it can get slow. I like it though. Gardening, eat out and some decent places, go out on the town once a week.....some parties at home....and alot of traveling. Traveling for 4 day cost me 20,000, so we no longer do that very often. (Hotel, meals, gas, shopping).

I know bored people who retired back home, and I think I am better off here...for the money.

You need a minimum of 40,000 baht a month...or you will be disappointed, I think. Your wife may need quite a bit more...for the relatives.

Yes, if you want to live like a king (like some people do) you better never come to Thailand, because of your financial condition. But if you just expect to live in a quiet place far from big cities, it is not to shabby (many farang living on low pension) to have a simple life just like most Thai people (cook at home and save which is actually more healthy to me rather than eating out and end up to hospital by food poisoning).

Not much fun, not much beer, no Go Go bars, just a simple life.

It is possible. All depends on you and your expectations.

[Bangkokazy]

Retiring in Thailand you need 5 years' salary in a savings account, plus month payments pension.

Hundred thousand Pounds Sterling Savings Account

Fifth Hundred Pounds Sterling per month pension

Plus 2 to 3 percent increase in pension annually.

[timendres]

Retiring in Thailand you need 5 years' salary in a savings account, plus month payments pension.

Hundred thousand Pounds Sterling Savings Account

Fifth Hundred Pounds Sterling per month pension

Plus 2 to 3 percent increase in pension annually.

Or.... not.

[thaiduncankk]

Retiring in Thailand you need 5 years' salary in a savings account, plus month payments pension.

Hundred thousand Pounds Sterling Savings Account

Fifth Hundred Pounds Sterling per month pension

Plus 2 to 3 percent increase in pension annually.

Hard to quote figures like that when everybody's circumstances are different.

A married man with 3 or 4 kids, where he is paying annual school fees, is completely different to, say, a single man,

Non smoker, goes out once or twice a week, and does not need to rent a 3/4 bedroom house, when a reasonable average size condo would be quite suffice for his needs.

[Bangkokazy]

When I said that I thought of myself

[YeahSiam]

Retiring in Thailand you need 5 years' salary in a savings account, plus month payments pension.

Hundred thousand Pounds Sterling Savings Account

Fifth Hundred Pounds Sterling per month pension

Plus 2 to 3 percent increase in pension annually.

Hard to quote figures like that when everybody's circumstances are different.

A married man with 3 or 4 kids, where he is paying annual school fees, is completely different to, say, a single man,

Non smoker, goes out once or twice a week, and does not need to rent a 3/4 bedroom house, when a reasonable average size condo would be quite suffice for his needs.

I doubt there's anyone

stupid enough to come

here, collect his

pension and then

proceed to crank out

three or four kids.

Oh wait, I forgot.

This is Thaivisa