NESDB says retiree needs 2.8 – 4 million baht savings to survive for the rest of life

[webfact 85859]

NESDB says retiree needs 2.8 – 4 million baht savings to survive for the rest of life

 

 

People in Thailand need retirement savings of between 2.8 and 4 million baht to survive for the rest of their lives, according to the National Economic and Social Development Board (NESDB) Secretary-General Danucha Pichayanan on Tuesday, referring to a special report, titled “Income Security for the Aged: For a Better Quality of Life”, authored by the government’s think-tank.

 

The report says that Thailand will officially become an aged society in the next two years and super aged society in the next 12 years, but the savings of older people will not be sufficient to live a modest life, unless the state promotes more saving by the public and tries to help retirees to develop a source of income after their retirement.

 

Citing a study on savings after retirement, Danucha said that a retiree in an urban area must have at least four million baht saved to survive after their retirement, or 2.8 million baht for those in rural areas.

 

Full story: https://www.thaipbsworld.com/nesdb-says-retiree-needs-2-8-4-million-baht-savings-to-survive-for-the-rest-of-life/

 

 

-- © Copyright Thai PBS 2021-02-24

 

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[daveAustin 11778]

Cue the high roller mongerers with their massive houses, wife/10 mia nois, 7 cars and and assorted bikes... 'I wouldn't last a month on that!"  

[Albert Zweistein 463]

Perhaps a state pension could help ?

[onebir 1193]

1 hour ago, webfact said:

Citing a study on savings after retirement, Danucha said that a retiree in an urban area must have at least four million baht saved to survive after their retirement, or 2.8 million baht for those in rural areas.

Seems beyond reach in many cases?

[pookondee 1640]

So just how many years of life expectancy are they basing that figure on?

 

I know they are talking about Thai people here, but in my case id have to around 70y.o  and dead before 80 to.make those figures work

[ourdon 149]

22 minutes ago, pookondee said:

So just how many years of life expectancy are they basing that figure on?

 

I know they are talking about Thai people here, but in my case id have to around 70y.o  and dead before 80 to.make those figures work

Exactly my thought.  I've enough savings to live quite comfortably ... as long as I die according to schedule

[Don Chance 1091]

It is the same problem  for retirees all over the world: low interest rates. With 1.5% interest on fixed income you need about 1-2 million dollar in the bank to retire.

Edited February 23 by Don Chance

[realfunster 1591]

I was going to talk about how they calculate this savings pot, lack of investment education and opportunities for investment planning etc. But you know what, that is just papering over the cracks.

 

It’s a fundamentally corrupt and closed developing economy, which is aging reasonably ahead of other comparable economies. With this demographic shift, the old model of the children looking after parents may face some challenges.

 

Until all that is addressed through economic & social reform benefitting the wider population (of which I have seen minimal progress over the last decade),  most oldies will simply have to eat cake, or beg their children for cake.

[Mr Meeseeks 5036]

Maybe there's a typo in the OP and they meant 2.8 to 4 Bitcoin?

 

You'd have to be mad to bet on worthless fiat currency with the current state of the global economy.

[mikebell 14079]

Perhaps if they narrowed the disparity in wealth between the hi-sos and the rest this huge figure would shorten?

[petermik 18328]

3 hours ago, Albert Zweistein said:

Perhaps a state pension could help ?

There is one already...600 BAHT a month to the lucky ones...

[BritManToo 46509]

1 hour ago, Don Chance said:

It is the same problem  for retirees all over the world: low interest rates. With 1.5% interest on fixed income you need about 1-2 million dollar in the bank to retire.

Quite a lot of foreign retirees have pensions ........ no need to worry about interest rates or investments.

Can't imagine many Thais not spending their money in the bank quite quickly.

Edited February 24 by BritManToo

[CrunchWrapSupreme 1273]

Retirement? A few months ago, up in Issan, I just saw my 72 year old father-in-law still tossing bales of sugar cane up onto the trailer.
 

Despite the family’s continued hard work, the meager, fluctuating profits from farming mean he’s barely able to service their debts to the To Ko So (BAAC Bank), which will never be paid off.

[PatOngo 49713]

It's sad that so many don't have two coins to rub together while the filthy snouts continuously pillage the trough!

[herfiehandbag 4783]

1 minute ago, PatOngo said:

It's sad that so many don't have two coins to rub together while the filthy snouts continuously pillage the trough!

Lamp posts!

That is the only thing that will change it.

[KarenBravo 10969]

Most Thais already have a pension plan.

Leeching off their children.

After a life-time of reminding their kids that it was them that gave their children life, they want pay-back for what was probably a three minute drunken <deleted>.

[BritManToo 46509]

17 minutes ago, KarenBravo said:

Most Thais already have a pension plan.

Leeching off their children.

After a life-time of reminding their kids that it was them that gave their children life, they want pay-back for what was probably a three minute drunken <deleted>.

I personally don't think it's out of order to expect your kids to 'give back' in your old age.

I understand my PoV isn't a popular one in these days of me, me, me and take, take, take but it's a PoV that was considered normal for most of the history of man (barring the west in the past 40 years).

 

I can well remember my gran living with us in the UK, circa 1960s - 1970s and it was considered entirely normal.

 

My Thai step-daughter (whom I fed, clothed and educated) certainly states that she expects to support me once she starts earning.

I'm just happy the university and school fees are about to stop.

Edited February 24 by BritManToo

[Mr Meeseeks 5036]

$1.9 Trillion US Dollars were printed yesterday for anyone that is interested.

 

It is likely that by the time those folk reach old age the amount of Baht needed to live out the rest of their lives in comfort will have increased markedly. 

 

That's what happens when your currency is only backed by the debt and promises of corrupt and self-serving gangsters (politicians, Worldwide), and who follow flawed Keynesian inflationary economic policies and print more worthless money to service unserviceable debts.

 

With the way the Thai economy is I would be hedging against the Baht in Bitcoin or Gold. Bitcoin not for everybody I understand but there is a financial revolution happening at the moment called decentralised finance which will pretty much be the nail in the coffin for the financial system as we know it.

[473geo 5030]

7 minutes ago, KarenBravo said:

Most Thais already have a pension plan.

Leeching off their children.

After a life-time of reminding their kids that it was them that gave their children life, they want pay-back for what was probably a three minute drunken <deleted>.

My understanding is the current workforce in the west pay for the current state pensions. Thai way is just more personal and direct

[Mr Meeseeks 5036]

9 minutes ago, KarenBravo said:

Most Thais already have a pension plan.

Leeching off their children.

After a life-time of reminding their kids that it was them that gave their children life, they want pay-back for what was probably a three minute drunken <deleted>.

Indeed and this is why many feel pressured to enter into the sex industry because money earned from menial jobs like 7/11 clerk or factory worker would not be enough to support the family.

 

In many cases they do not admit to their family where the money is coming from but it is implicitly condoned. 

 

If I ever had kids, and I made the wise decision to never have any as I value personal and financial freedoms over bringing more unnecessary bodies into the World, then I would try to ensure they had enough capital to venture out into the World on a solid footing.

 

Probably the most important consideration of having a family is to effect capital accumulation during your lifetime so the offspring have a better chance in life than you had. Otherwise why bother?

 

The Thai way is the wrong way round. You should be preparing for your children's future, not having them work to support you in your decrepit, pathetic state. 

[BritManToo 46509]

9 minutes ago, Mr Meeseeks said:

It is likely that by the time those folk reach old age the amount of Baht needed to live out the rest of their lives in comfort will have increased markedly.

Can't see that myself,

When I came here as a single guy in 2009 I was spending 60kbht/month+

Now as a family of 4 in 2021, I spend around 40kbht/month.

Inflation for most expenses in Thailand over the past 11 years seems minimal, some significant costs have reduced.

Assuming these old folk own their own land and grow a bit of fruit and veg on the side, there is no reason to assume their expenses will increase significantly.

Edited February 24 by BritManToo

[KarenBravo 10969]

9 minutes ago, Mr Meeseeks said:

Indeed and this is why many feel pressured to enter into the sex industry because money earned from menial jobs like 7/11 clerk or factory worker would not be enough to support the family.

 

In many cases they do not admit to their family where the money is coming from but it is implicitly condoned. 

 

If I ever had kids, and I made the wise decision to never have any as I value personal and financial freedoms over bringing more unnecessary bodies into the World, then I would try to ensure they had enough capital to venture out into the World on a solid footing.

 

Probably the most important consideration of having a family is to effect capital accumulation during your lifetime so the offspring have a better chance in life than you had. Otherwise why bother?

 

The Thai way is the wrong way round. You should be preparing for your children's future, not having them work to support you in your decrepit, pathetic state. 

 

Couldn't have put it better.......

[Mr Meeseeks 5036]

1 minute ago, BritManToo said:

Can't see that myself,

When I came here as a single guy in 2009 I was spending 60kbht/month+

Now as a family of 4 in 2021, I spend around 40kbht/month.

Inflation for most expenses in Thailand over the past 11 years seems minimal, some significant costs have even become cheaper.

Assuming these old folk own their own land and grow a bit of fruit and veg on the side, there is no reason to assume their expenses will increase significantly.

Fair comment however I'm far less optimistic and tend to think in cycles. 

 

Thailand certainly may be more immune to the economic insanity going on in the West at the moment, however it will affect all countries thanks to globalisation.

 

Last time we saw looming economic crises of this magnitude at the start of the 20th century it ended up in tears, no reason that the outcome will be any different this time.

[473geo 5030]

15 minutes ago, Mr Meeseeks said:

Indeed and this is why many feel pressured to enter into the sex industry because money earned from menial jobs like 7/11 clerk or factory worker would not be enough to support the family.

 

In many cases they do not admit to their family where the money is coming from but it is implicitly condoned. 

 

If I ever had kids, and I made the wise decision to never have any as I value personal and financial freedoms over bringing more unnecessary bodies into the World, then I would try to ensure they had enough capital to venture out into the World on a solid footing.

 

Probably the most important consideration of having a family is to effect capital accumulation during your lifetime so the offspring have a better chance in life than you had. Otherwise why bother?

 

The Thai way is the wrong way round. You should be preparing for your children's future, not having them work to support you in your decrepit, pathetic state. 

Yeah yeah bla bla, and prepare what future for the urbanites? Raise expectation educate and ease them into economic and corporate slavery?

Might not be the high life, but many Thai rural folks can support their children if necessary without fiat currency or bitcoin, maybe not a bad back up at all.

Do they need expensive vehicles?Mortgages,cash consuming properties? Gym membership? Nights out at expensive pubs and restaurants? Global travel? all to justify 60 hours a week sucked by working for others?

So the kids take pleasure in sending a bit of cash for a few treats, yeah lets rob them of that pleasure too grind them into the metropolis dirt!!

If it wasn't for the oldies they wouldn't be selling sex ..... er .......yes right

[cmarshall 3300]

I think the young Thais now who have a higher standard of living than previous generations to the point of foreign travel are going to have difficult old ages.  They make enough for a Thai middle class lifestyle now, but can't save for retirement and can't afford to buy apartments at least here in Bangkok.  The women seem to be marrying less, which is understandable given the quality of the average Thai male, but it's that much more difficult to build a financially secure life alone.

 

It's worrisome.

[RocketDog 2612]

3 hours ago, Don Chance said:

It is the same problem  for retirees all over the world: low interest rates. With 1.5% interest on fixed income you need about 1-2 million dollar in the bank to retire.

Naturally that depends greatly on how and where you live in retirement and the lifestyle you have before retirement. Your estimates are too simplistic to be very useful. Suffice it to say that more is better. 

 

Most Americans won't fare well in retirement. 

https://www.cnbc.com/2020/01/23/heres-how-much-americans-have-saved-for-retirement-at-different-ages.html

[cmarshall 3300]

5 minutes ago, RocketDog said:

Naturally that depends greatly on how and where you live in retirement and the lifestyle you have before retirement. Your estimates are too simplistic to be very useful. Suffice it to say that more is better. 

 

Most Americans won't fare well in retirement. 

https://www.cnbc.com/2020/01/23/heres-how-much-americans-have-saved-for-retirement-at-different-ages.html

 

True that.  Retirement is the most expensive thing you will every buy.

[RocketDog 2612]

54 minutes ago, 473geo said:

Yeah yeah bla bla, and prepare what future for the urbanites? Raise expectation educate and ease them into economic and corporate slavery?

Might not be the high life, but many Thai rural folks can support their children if necessary without fiat currency or bitcoin, maybe not a bad back up at all.

Do they need expensive vehicles?Mortgages,cash consuming properties? Gym membership? Nights out at expensive pubs and restaurants? Global travel? all to justify 60 hours a week sucked by working for others?

So the kids take pleasure in sending a bit of cash for a few treats, yeah lets rob them of that pleasure too grind them into the metropolis dirt!!

If it wasn't for the oldies they wouldn't be selling sex ..... er .......yes right

It seems you are just deploring the very  common human experience of having to work to live. 

In reality many people find a sense of accomplishment and self-worth in their work, regardless of how strenuous it is. Granted that simple brute-force grunt labor becomes stultifying and degenerative, but there is a wide spectrum of opportunities in nearly all countries with variable rates of reward.

 

Poverty is not uplifting in any way, but earning a living for yourself and your family is a noble task. How the resultant income is spent is quite another issue, but that remains an individual choice and some people have poor judgment. That's hardly an indictment of entire economic systems. Financial wisdom is one of the most valuable lessons parents can give their kids. 

[RocketDog 2612]

10 minutes ago, cmarshall said:

 

True that.  Retirement is the most expensive thing you will every buy.

Close, but I think being with a woman claims the top spot.

[473geo 5030]

2 minutes ago, RocketDog said:

It seems you are just deploring the very  common human experience of having to work to live. 

In reality many people find a sense of accomplishment and self-worth in their work, regardless of how strenuous it is. Granted that simple brute-force grunt labor becomes stultifying and degenerative, but there is a wide spectrum of opportunities in nearly all countries with variable rates of reward.

 

Poverty is not uplifting in any way, but earning a living for yourself and your family is a noble task. How the resultant income is spent is quite another issue, but that remains an individual choice and some people have poor judgment. That's hardly an indictment of entire economic systems. Financial wisdom is one of the most valuable lessons parents can give their kids. 

A home, and self sufficiency, opening up the choices of children is possibly as much of a benefit if not more than teaching 'financial wisdom'

Life on the treadmill of employment is not a ticket out of poverty for many, but merely an alternative method of subsistence