Retirement in Krabi.

[fasteddie 3,892]

I've just reached retirement age and am considering retirement in Krabi, well Ao Nang actually. I'd like to hear from any Brits living in Thailand on just a UK state pension, is it possible or even worth it? I've been informed I'll be getting £163pw, which at the moment is about 38,000baht per month. Will I still receive all of that in Thailand? Any advice would be helpful.

[LivinginKata 9,142]

You will receive what you are due even in Thailand, but be aware that your starting state pension will be frozen if you reside outside the UK. That is, you won't be eligible for any indexed annual increases.

[Lite Beer 8,404]

Yes it is possible if you are carefull.

The Pension Service will send your pension to your bank account in Thailand.

As said, your pension will never increase as long as you live in Thailand.

As for long term Visas/Extensions ? You need 800,000 Baht in the bank or 65,000 Baht monthly Income or a combination of the two. Unless Married to a Thai.

[klongmuang 25]

In order to benefit for a one year non-immigrant retirement visa. you have to be at least 50 years of age, have a guaranteed monthly income of THB 65'000 or at least THB 800'000 deposited on a Thai bank account. In such a case you don't need to make visa runs, but only report every 90 days to the immigration office in Krabi town and you can extend it for another year, without being required to leave to country, provided you still have the monthly income or funds available. With monthly THB 38'000 you'll be on a tight budget and if you're required to make visa runs, it even will get more serious. Thai immigration has disallowed border runs with visas on entry, i.e. just get across the Malay border and return to Thailand. You won't get in anymore and you have to apply for a visa with a Thai consulate. As of August they will also disallow visa runs by air. A dual entry tourist visa valid for 2 x 60 days is about THB 5'000, but you have to apply for it in the UK or with a Thai consulate outside Thailand.

[asdecas 1,999]

There are several factors you should consider before retirement on a fixed, limited income in a foreign country:

First, make certain exactly how much you are entitled to should you opt for living overseas. It may be that certain benefits you receive in the UK will not be transferable overseas. The full UK State Pension is only £113 pw. Certain countries have reciprocal agreements with the UK government that allow for cost-of-living increases to the State Pension yearly. Thailand has no such agreement, so what you receive initially is what you will always receive, and inflation will corrode your purchasing power over the years. For a list of those countries that do have reciprocal agreements with the UK, see the UK Pension Service website.

Secondly, you need to consider your contentment as against what will inevitably be a fairly frugal life; some can happily live such a life of denial, others not so.

Thirdly, give serious contemplation to exactly where you are going to retire to. You say Krabi, one of the more expensive but by no means THE most expensive areas of Thailand for the major expenses - housing, food, entertainment etc.

Fourthly, give serious thought to possible future healthcare needs. I don't say that you absolutely must buy insurance, which in any case would be expensive at your age, but at least consider accumulating some savings against any health problems in the future.

These are some points to think about. I'm sure there are others...

Edited June 7, 2014 by asdecas

[recycler 1,295]

38K Bath per month may be possible now if you are extremely careful, not a lot of room for leisure already.

But I wouldn't advise you to take the risk considering exchange rate fluctuations, rising prices of everything in Thailand, possible health issues, changing visa regulations, etc.

[dotpoom 8,185]

You could live like a king on that money here....but I don't drink or smoke and own my house.

Edited June 7, 2014 by dotpoom

[SDM0712 269]

Depending on where you want and how you to live I think it's quite possible. But make sure you either have a decent lump sum in the bank (you need 800,000 anyway for the retirement visa) or have a decent medical insurance policy. No NHS here. Many people seem to forget this.

Personally I don't think the UK state pension is enough for a foreigner to live comfortably. If you can live in the countryside like be Thais then no problem, but the tourist locations will be too expensive. Down here in Phuket if you can live in a 20 m2 room with no air con you could do that for about 4500/5000 a month. But if you want things like ac, hot water, and say 30 m2 size plus you will be looking at 10/12,000 PCM plus electricity, water, TV etc. If you need to eat out every day you could do for 100 baht if it's only noodles, but 400/500 if you want some real food in a cheap place, best to cook for yourself. There's nothing worse then coming to live in paradise if you can only look in from the outside.

My UK home is in NW London and I live in Phuket. I would say my living expenses are roughly the same and my medical insurance is about £160 a month via a UK company and roughly also what I paid at home.

SDM

Edited June 7, 2014 by SDM0712

[GregBahder 2]

In order to benefit for a one year non-immigrant retirement visa. you have to be at least 50 years of age, have a guaranteed monthly income of THB 65'000 or at least THB 800'000 deposited on a Thai bank account. In such a case you don't need to make visa runs, but only report every 90 days to the immigration office in Krabi town and you can extend it for another year, without being required to leave to country, provided you still have the monthly income or funds available. With monthly THB 38'000 you'll be on a tight budget and if you're required to make visa runs, it even will get more serious. Thai immigration has disallowed border runs with visas on entry, i.e. just get across the Malay border and return to Thailand. You won't get in anymore and you have to apply for a visa with a Thai consulate. As of August they will also disallow visa runs by air. A dual entry tourist visa valid for 2 x 60 days is about THB 5'000, but you have to apply for it in the UK or with a Thai consulate outside Thailand.

In 2011 they were still doing runs to Lao from Pataya where they would drive you to Viatiane, put you up in a hotel and arrange the dual entry visa at the Thai Embassy and then drive you back into Pattaya the next day. This included some standing around at the border and at the embassy, but overall wasn't a bad trip.

[elliottm 40]

I get by on just under 10k a month, rent for 1 year pre-paid (3200pm equiv), wife's shoe business covers utilities + wiffi (1,700), petrol and any titbits for friends & family. 10k car loan comes back on line in Sept after using up the tax refund.

[spambot 272]

The responses to your question is very good and balanced content from the contributors.

Retirement here is a very contextual decision and can only really be understood by being here for some time - I would suggest for this for you to invest £750 on a 3/6 months for flight and stay - Your living costs in a non expensive part of Bangkok can be around £550 / month (Rent, food, beer, travel, utilities) - The costs in saving from not being in UK will somewhat / pay offset the Bangkok cost for same things. And for example just on savings from utilities, House insurance, Local authority charge(UK), food, beer can be a significant contribution to lowering your offset amount.

Location - Making this investment will help you become a wiser man to make the choice more easy for you. I recommend you make Bangkok your base for the ease and options to travel from Bangkok to potential areas to investigate the location possibilities for longer term retirement

On the financial side - Your earnings from state pension are doable, but as everyone on this forum knows everyone has different needs and lifestyles - However there are many that are living on what your earning on state pension and having a good life here.

Health costs can be a problem if you have a sudden need arising and this is a worry that most of think about by being here - But also need to balance this with feeling better everyday by being here and possibly being more healthy - If you do not go off the rails with the temptations on offer.

State pension fixed - It does get fixed at a level once you retire here, but this is not immediately since you are not considered as being resident by UK until you have been here 2/3 years - Also you can reset the freeze on the retirement pension fixed point by periodically going back to UK and becoming a resident again in UK - The rules on all pension you do however need to talk with UK Gov pensions since there have been a number of changes in how long it takes to be a non resident and also what are the conditions for resetting the pension indexation as being regarded as resident in UK. So my details here are for general guidance only.

[BradinAsia 723]

Yes it is possible if you are carefull.

The Pension Service will send your pension to your bank account in Thailand.

As said, your pension will never increase as long as you live in Thailand.

As for long term Visas/Extensions ? You need 800,000 Baht in the bank or 65,000 Baht monthly Income or a combination of the two. Unless Married to a Thai.

After encountering so many folks (Brits) on TV talking about their pensions do not meet the minimum 65,000 baht/month for a retirement

visa in Thailand -- I'm wondered why U.K. state pensions so low?

I'm not trying to be a smart-alec, just honestly curious. Are U.K. state pensions something like social security in the U.S? Something

separate from regular retirement from a regular job?

[Saan 1,287]

I spend less than 38,000 baht a month, although my income is greater than that, and think I have a fairly comfortable life style and don't find myself skimping. I am not living in a village but a city, enjoy a drink or two and regularly eat western food. But as mentioned before your major concern could be health. If something goes wrong and you are not covered by insurance or have no reserves you are in trouble.

[maprao 819]

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Yes it is possible if you are carefull.

The Pension Service will send your pension to your bank account in Thailand.

As said, your pension will never increase as long as you live in Thailand.

As for long term Visas/Extensions ? You need 800,000 Baht in the bank or 65,000 Baht monthly Income or a combination of the two. Unless Married to a Thai.

After encountering so many folks (Brits) on TV talking about their pensions do not meet the minimum 65,000 baht/month for a retirement

visa in Thailand -- I'm wondered why U.K. state pensions so low?

I'm not trying to be a smart-alec, just honestly curious. Are U.K. state pensions something like social security in the U.S? Something

separate from regular retirement from a regular job?

yes

[robertthebruce 3,752]

You could always split your time between UK and Thailand, it full time with that money could be difficult..living here, and you don't want to be penny pinching..

Whatever you decide all the best