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Retirees need at least B4.4m over 20 years

Thais should save at least 4.36 million baht when they retire so they can have 16,000 baht to spend every month over the next 20 years.

The advice came from Krisada Sektrakul, deputy manager for capital market knowledge development at the Stock Exchange of Thailand, according to a Post Today report.

Mr Krisada said the monthly figures was based on gross national product per capita at 192,812 baht a year or 16,068 baht a month.

When adjusted by inflation at 3% a year on average and the minimum investment return rate, the amount would be 29,255 baht over the next 20 years or 4.36 million baht in total in today's value.

While some Thais already have nest eggs under different schemes, the amount is much smaller than what he recommended. Most have saved around 100,000 and 500,000 baht each.

Civil servants generally save through the compulsory Government Pension Fund while corporate workers rely on the compulsory Social Security Fund and voluntary provident funds, as well as long-term equity funds and retirement mutual funds for which the government provides tax breaks.

Only 15 million, or 37.5%, of 40 million people aged 20-59 are saving for retirement, he added.

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