How to plan retirement in Thailand

[Lars C]

I've been married to my Thai wife for almost 6 years now and am beginning to look into early retirement and moving to Thailand when I turn 50/55 years old. Which is some 10-15 years away but I like to prepare and plan so I can work my way towards reaching my goal. 

 

The rough idea is to buy a new home for around 3-5 million bath and the have a monthly budget around 30.000-50.000 bath. We are not looking at a home in Bangkok or Pattaya but maybe somewhere near her birthtown of Chaiyaphum or in a area like Chiang Mai or Korat. 

 

I'm curious about how you guys planned your retirement and how it went after you moved? Did your budget hold up and was it easy to keep? 

Any advice from you guys would help a lot so thanks in advance. 

[KittenKong]

I would be wary of buying a house here as you basically never own it yourself and so in the end you always rely on the goodwill of others to retain control your investment. A condo is somewhat different.

 

As for day-to-day expenses, I spend exactly what I thought I would spend but I live alone so it's easy. Most people I know with Thai partners seem to spend far more than I do. Health insurance is another consideration.

 

As for living out in the sticks: it would drive me out of mind in no time. Chiang Mai would be as rural as I would want to get, and I would not want to be anywhere with a smaller farang population either.

[catman20]

another 10/15 years time you may not even be with this lady.

[steven100]

Well,  you certainly are planning early ....     but it would be feasible to buy a place for 3-4 mill  although in 15 yrs the price may have increased 30-50% 

You won't ever own the house but your wife will so if your fine with that then there's no issue.

An allowance of 30-40,000 baht is fine but when your ready it will only be worth 20-25,000 so you'll need to save a bit more from here on ...

 

 

[meatboy]

if your looking ahead 10/15yrs,who knows what this country will be like then.

the only planning you need to do is make sure your funds are in order.

make sure you keep your bank account in the uk.so any pensions can be paid and drawn once a yr.as to cut down on trans.fee's.

have living exs.for 1yr.in advance.

visit where you think you might like to live,and not once or twice,we visited korat for over 10yrs.then you have to find the right place.

we chose a mooban,no flooding not toooooooooooo big [max 50houses]

there is SO MUCH you need to consider before taking the plunge,my wife spent 20yrs.in the uk.and jf you asked her today did she make the right decission to move i dont think you would get an answer.

a lot can happen in 10/15yrs. so dont get tooooooooooooo excited.

taff.[korat]

[meatboy]

47 minutes ago, KittenKong said:

I would be wary of buying a house here as you basically never own it yourself and so in the end you always rely on the goodwill of others to retain control your investment. A condo is somewhat different.

 

As for day-to-day expenses, I spend exactly what I thought I would spend but I live alone so it's easy. Most people I know with Thai partners seem to spend far more than I do. Health insurance is another consideration.

 

As for living out in the sticks: it would drive me out of mind in no time. Chiang Mai would be as rural as I would want to get, and I would not want to be anywhere with a smaller farang population either.

what KK has posted you need to understand what he say's,also a couple of yrs.postings in the thai visa forums you need to read and take your time.yes are are good and bad stories and also a lot of heartbreak.

so as it goes in parliament in the uk. when deciding something,ITS EYE.S TO THE RIGHT AND NO'S TO THE LEFT.

[Pinot]

Just make as much money as long as you can.  It currently takes about $3000/mo to live well here and do some traveling. Buddha knows what you'll face 10-15 years from now. 

[phuketrichard]

work as much as u can, save as much as u can.

as to expenses, I live very well here in phuket (2 of us)on $1,200-1,400/month!!!

I travel out of Thailand at least 2 times/year as well

[Kabula]

In view of the economic retreat worldwide, the retreating dollar, currency, trading conflicts, the U.S. Stock market beginning to sell off it's bubble, threats of nuclear war; who can answer that question now?

 

In 15 years, remaining  life on planet earth may be living in dry caves if all this nonsense accelerates. 

 

That is if the planet does not split in half from nuclear war. 

 

 

 

 

 

 

[Suradit69]

8 hours ago, Lars C said:

have a monthly budget around 30.000-50.000 bath.

If Baht 50,000 a month is adequate for your needs now. you really need to factor in inflation, compounded. I find Baht 65,000 to 75,000 to be a bare minimum per month and I have no rent to pay since I own my condo ... but I am in Pattaya, which is more expensive than rural areas.

 

Inflation hasn't been too bad recently, but most economists expect an increase, whether in Thailand or most parts  of the world. Even at a relatively benign rate of 2.5% per year compounded, Baht 50,000 runs up to about Baht 72,500 in 15 years.

 

And the same issue will impact the price of a house or condo you want to buy.

 

Quote

That is if the planet does not split in half from nuclear war. 

Well, in that event, retirement planning will be greatly simplified.

 

 

 

Edited March 22, 2017 by Suradit69

[fxe1200]

Rent a house, do not buy one. You never know, what might happen over time to your personal situation or the surroundings of a house bought. When you rent, you will be safe, to make a quick decision and move on. Make sure, that you do NOT spend all your assets here in Thailand, keep some decent reserves abroad.

[Thaidream]

In 15 years Thailand will be close to being a develop country. It will have the 20th largest economy in the World and I would imagine prices will rise accordingly. If you live in a city the housing prices will be high. It depends on how much land goes with the house. I had a house in Bangkok 15 years ago which I sold for 4 million Baht. It is now worth 10 million Baht (wish I still had it).

In addition, your monthly expenses will depend upon your lifestyle. If you eat only Thai food- this can be inexpensive. If you desire Western food- your food budget will be high.

I would count on a monthly income of around 75,000 Baht for a moderate lifestyle.

I would not recommend stopping work at age 50 or 55. You will lose pension credits and monthly income. As long as your spouse is happy where you are now- stay as long as possible.  To be frank, Thailand is losing its appeal as a retirement destination for many reasons to include Immigration hassles; rising healthcare costs; crime and inflation.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

[laochef]

I don't know how much you know about TH, or how long you'vr been there. Having said that I would spend 1-2 years first, doing nothing, except looking around and get a feel for the suroundings, so to speak... And don't jump straight into investments, such as buying a house etc. Condos are much more expensive than houses, both to buy and rent. As for securing land, think to lease, from your wife, can be done for up to 30 years (today), and secured with the Land Department. You can also take out an "usurfruct". Google the meaning, way to much to post here... BTW, Lars, Scandinavian ?

 

[Kwasaki]

9 hours ago, Lars C said:

I've been married to my Thai wife for almost 6 years now and am beginning to look into early retirement and moving to Thailand when I turn 50/55 years old. Which is some 10-15 years away

Well l take it you have been coming to Thailand every year for 6 years and having a Thai wife you should have a pretty good idea of what's what here already.

Obviously planning retirement early is a good idea but with 10-15 years to go personally l would confine it to just the finances only at this moment in time. 

 

9 hours ago, Lars C said:

maybe somewhere near her birthtown of Chaiyaphum

That's where you will be near her family.  

 

9 hours ago, Lars C said:

Did your budget hold up and was it easy to keep?

For me yes,  just about with my savings but 2008-2009 thingy didn't help much, and before l came to stay everything was bought and paid for,  for starters.  

Edited March 22, 2017 by Kwasaki

[paddyfield7]

I decided to move to Thailand for good 4 years ago when I was 67. The 1st question to answer was sea or mountains, and I decided for the cooler mountains in the North. As I still wanted to have good health care, shopping variety and a good choice of restaurants, Chiang Mai was my decision. I did rent a house for THB 12,000 per month for 8 months, with an option to buy it during this period. Only too soon I realised that the owner was in need of money, he offered me a discount of THB 500,000 and I bought the house in the name of my wife sooner than I actually wanted. When I realised that the neighbourhood was not so exciting, we started to look around for real nice land and built an own designed new house. Luckily, we could sell the 1st one at our cost price 2 days after we moved out. I share the opinion of others to go for a rent first, but don't let you push into a too quick purchase as I did. How rural the aerea can be is up to your needs. I feel fine in CNX with almost everything also BKK offers, except it's much cheaper here, and more good air to breath - even now at this time of the year. My wife's monthly budget is THB 50,000 with which she covers all fix costs such as phones, internet, TV, water, power etc. and her personal needs, whilst I cover the weekly shopping tour in downtown Chiang Mai, which equates about another THB 50,000.

[NoshowJones]

3 hours ago, meatboy said:

if your looking ahead 10/15yrs,who knows what this country will be like then.

the only planning you need to do is make sure your funds are in order.

make sure you keep your bank account in the uk.so any pensions can be paid and drawn once a yr.as to cut down on trans.fee's.

have living exs.for 1yr.in advance.

visit where you think you might like to live,and not once or twice,we visited korat for over 10yrs.then you have to find the right place.

we chose a mooban,no flooding not toooooooooooo big [max 50houses]

there is SO MUCH you need to consider before taking the plunge,my wife spent 20yrs.in the uk.and jf you asked her today did she make the right decission to move i dont think you would get an answer.

a lot can happen in 10/15yrs. so dont get tooooooooooooo excited.

taff.[korat]

"make sure you keep your bank account in the uk".  Don't you need to keep a UK address, or use somebody elses if you live abroad permanently?

[0U812]

Some much can change in 15 years. I would start planning 2 years out.

[Kwasaki]

6 minutes ago, possum1931 said:

"make sure you keep your bank account in the uk".  Don't you need to keep a UK address, or use somebody elses if you live abroad permanently?

No. 

You've taking notice of what some people say on TV,  go and stand in the corner. 

[Kwasaki]

15 minutes ago, vsigrist said:

My wife's monthly budget is THB 50,000 with which she covers all fix costs such as phones, internet, TV, water, power etc. and her personal needs, whilst I cover the weekly shopping tour in downtown Chiang Mai, which equates about another THB 50,000.

With respect that's not advice only high end expensive living standards.

Retirement can be done much cheaper than that with still a reasonable standard of living if you plan reasonably correctly. 

[NoshowJones]

1 minute ago, Kwasaki said:

No. 

You've taking notice of what some people say on TV,  go and stand in the corner. 

Could it be that the UK banks make up their own rules just like the Thai banks?

I remember a debate some time ago in the Banking Forum when someone asked the same question.

Some posters said you could keep your bank account while living abroad, while someone else said his bank

told him he could not.

[Kwasaki]

1 minute ago, possum1931 said:

Could it be that the UK banks make up their own rules just like the Thai banks?

I remember a debate some time ago in the Banking Forum when someone asked the same question.

Some posters said you could keep your bank account while living abroad, while someone else said his bank

told him he could not.

Yes in one word you are correct, l have no problem with ' First Direct' which is a member of HSBC group.

Come out the corner now.  

[MyFriend You]

24 minutes ago, possum1931 said:

"make sure you keep your bank account in the uk".  Don't you need to keep a UK address, or use somebody elses if you live abroad permanently?

This is the 2d reference to him being from UK, did I miss something??  Can't find a reference anywhere he is from UK, so how about it Lars, from UK or Northern Europe??

 

[NoshowJones]

3 minutes ago, Kwasaki said:

Yes in one word you are correct, l have no problem with ' First Direct' which is a member of HSBC group.

Come out the corner now.  

OK I'm out of the corner, what now?

[giddyup]

Too many variables in 10-15 years, absolutely pointless in garnishing information now.

[Kwasaki]

4 minutes ago, possum1931 said:

OK I'm out of the corner, what now?

OP young to me and as said where's he from. ?

How often in Thailand. ?

l'm just going for cold beer dunno about you.  

[Old Croc]

Firstly, ignore all the people who say you should never buy a house here in you're wife's name.

You've been together for six years now, you'll be approaching 20 years married when you retire. Way above the average length of marriage in any country, no need to be concerned.

 

Secondly, impossible to plan something like this so far ahead. Too many variables.

Do what every sensible planner does and concentrate on building sufficient funds to enjoy retired life, wherever it may be.

[Foozool]

2 hours ago, Thaidream said:

In 15 years Thailand will be close to being a develop country. It will have the 20th largest economy in the World

Really !!!! 

Ok, let's hope for that impossible, Unless Thai change the way they think and learn helpful ideas about everything in western countries.

My Thai gf thinks it will take at least 300 years to get where US is now, But my guess is longer than that.

[sipi]

How much time have you spent in Thailand Lars?

We (the missus) own a house there and we have annual extended holidays there, and I am much closer to retirement. However I haven't even considered retiring there full time as the weather would kill me for a start.

Take a few long holidays first and then think about it.

[F4UCorsair]

Please read ALL the threads on owning property in Thailand, in another's name, then DO NOT DO IT!!!

[steve73]

Looking at today's requirements, you need an income of 65kbt to qualify for a retirement visa, and this seems to be about the average spend of most retired farangs... Some claim they can live on half that, others that they need double (or more) that, but use this as a basis.

 

I'm giving this example based on UK GBP - easy enough to convert to whatever currency you require.

 

Assuming the GBP/THB rate remains about the same as it is now at 43 (10 years ago it was almost double this; it could go up again, and I'm sure some will claim it will fall further) that equates to around 1500GBP/month (or 18,000/yr).

State pension from the UK wouldn't start paying until you're around 70,  so you can ignore that for your initial calculations.  Any private pensions you might have built up will only start paying once you reach 55 (and at a much reduced rate than if you wait), so for this example ignore these as well.

 

To achieve the required income you'll need a capital of around 360,000 GBP if it's generating 5%.  This is pretty readily available at the moment albeit with some degree of risk.

So this is what you would need NOW to give the income required NOW, and it doesn't allow for any growth in your capital for future inflation..

 

But you are looking 15 years ahead, so you also need to take into account inflation between now and when you want to retire... If inflation runs at say 2.3%  (the latest UK figure just released), in 15 years, your 360k required is inflated to around 500k... But remember that its Thailand inflation that's more important for you, and this is likely to be much higher (my estimate is that most prices have doubled in the 10 years that I've been living here, and this represents around 7% inflation), but let stick with 5%... So now your 360k requirement inflates to around 750k....  If you're starting with a blank sheet you need to be saving around 50k per year for the next 15 years to achieve this. 

 

This is a really simplistic analysis but it should give you an idea of what you should be aiming for to give yourself a reasonable chance of a comfortable retirement...