Retire in this time when the global downturn of the recent years has made it hard to ensure a secure, comfortable and stimulating retirement.
The stage of retirement might be difficult for many, financially speaking. The balance of median retirement account of nearly retiring households is relatively low in many western countries, so that many people will most probably be dependent on benefits of the Social Security. One proven way to reduce cost of living is to retire in a lower cost country, where western money goes much further, i.e. South America and Southeast Asia.
Thailand can be a good example of a country to be contemplated by many people as the place to retire. Down below are a few reasons a few reasons as to why consider retirement in Thailand:
Retire with a relatively lower cost of living
Thailand’s cost of living in is basically more affordable than in many western countries. One can purchase a comfortable condo in central spots in the big Thai cities, i.e. Bangkok or Chiang Mai for about $50,000; one may rent a nice condo for about $500 per month. Necessities such as food, entertainment, transportation and other are more affordable in Thailand. A large number of expats can live a very convenient lifestyle for $1,500 per month in the “Land of Smiles”.
Thailand has a Warmer climate
There are plenty of scenic beach areas in Thailand, while the weather is tropically lovely. If dealing with snow and ice has exhausted you, then a nice umbrella drink in Pattaya or Phuket might well suit you. The weather is humid from time to time, but one can definitely can get used to it; in addition, there are ACs everywhere.
Thai Food & Western Food
If you are a fond of Thai food, you are sure to enjoy retiring in Thailand, since it is just a Thai food paradise. Many of the local cuisine dishes are not available in Europe or the U.S.
Thailand is a wonderful starting point for you to travel to other spots of Asia. You might get discount flights to surrounding states; Japan, China, Vietnam and Laos are all gorgeous and absolutely worth a visit. Living in Thailand for a while might give you a great opportunity to explore foreign cultures thoroughly.
How to Get A Retirement Visa in Thailand
A NON-IMMIGRANT Retirement VISA
- Passport (at least one year remaining before expiration)
- You must be holding nationality or permanent residence of the country of application
- Proof of Funds
ONE-YEAR RETIREMENT VISA
- Must be 50 years old and above
- Passport (signed copies of each page)
- Non-Immigrant Visa
- Departure Card TM.6
- Proof of meeting Financial Requirements
- Thai Bank Book (original)
- Letter from your Thai Bank
- Three(3) 4×5 cm photos, with full face taken
RE-ENTRY Visa Permit
Most people misunderstand the different concepts of “Extension of Stay” and “Re-entry Permit”. Sometimes mistaken for each other, you must understand that these are two different things, both of which you would need during your stay.
The Extension of Stay is simply the controlling date. Everything else is dependent on this. Everything is invalidated when your Extension of Stay expires. On the other hand, the Re-entry Permit’s validity is subject to the validity of your Extension of Stay. However, leaving Thailand without a re-entry permit automatically invalidates your extension of stay.
Reporting your stay every 90 days and visa expiration
You are required to report to the Immigration Police every 90 days if you are on a long term extension of stay. Persons holding a multiple entry visa will simply depart Thailand and renew their extension of stay after each 90 day entry.
If you cannot obtain your extension inside Thailand, you will have to get a new non-immigrant visa from a Thai Embassy or Consulate abroad.
Meeting the financial requirements for a retirement visa:
Financial Requirements are as follows:
- Bank Account showing THB 800,000
- Monthly income of at least THB 65,000
- Combination (Bank Account + Income x 12 = THB 800,000)
Most Difficult Retirement Decisions in Thailand
There are number of decision factors before retiring: reaching a specific age, hitting a savings goal, or being laid off in a tumultuous job market. To support yourself without income from a job, you’ll have to make a series of choices about Social Security, health coverage, and your investments. Here are 10 of the toughest decisions you will make before you retire.
When to retire ?
For some people, it’s a financial calculation. You know you’re financially ready when the combination of your Social Security, traditional pension, and investment income produces enough cash flow to cover all of your anticipated expenses for the rest of your life. Working two or three more years can make an incredible difference to your long-term plan. Many people also like to coordinate their retirement with a spouse.
The age that you will start getting your Social Security can change from country to country. Sometimes an early retirement in another country will be better and cost effective solution for you.
Health care and coverage
It’s essential to find affordable health insurance if you want to retire in other country or to find a country that the health care is not expansive. In Thailand the health care is relatively cheap compare to other country. The costs of Health insurance can be very cheap and also prohibitively expensive in some cases.
How much you can safely spend each year of your retirement
If your nest egg isn’t sizable enough to finance your retirement completely, you’ll need to calculate how much you can safely spend each year without depleting your savings too quickly. Depend on the location that you wish to retired.
For a low cost retirement you can easy start with $1,000USD or 32,000THB budget per month
How much investment risk
Retirees need to balance their investment needs for safety and continued growth. Retiring in Thailand will give you the stability you need with a low cost of living. You can keep on making money from your home country assets. You’ll need an emergency fund and several years’ worth of living expenses set aside in a safe place. Always make sure that you have your first three to five years of withdrawals invested in very conservative investments.
For most of people that want to retired in their own country does not mean that they don’t need to pay Tax’s. Even due that many countries give Tax Discounts for retirement it is still very hard to make more income without any Tax.
Where to retire?
Once you are no longer tethered to a job, you can live anywhere that suits your tastes and budget. Moving to a place that cost less than where you live now can boost your standard of living and help stretch your nest egg. You could also test out a place with better weather, more opportunities for recreation, or move closer to attraction.
Whether your home should help finance retirement. A paid-off mortgage can help finance your retirement because it eliminates one of your biggest monthly expenses.
Working after Retirement in Thailand?
If you decide to retired in your own country A part-time job is increasingly becoming common in the retirement years. Many people downshift to a job with shorter hours and less responsibility before retiring completely, while other people return to work after a break. The income, and sometimes benefits, a part-time job provides allows you to withdraw less of your retirement savings each year. Some people also find jobs they enjoy that allow them to interact with former colleagues, consult on the occasional project, or learn a new skill.
Bring your belonging items in to Thailand
You will be given six months from your entry to Thailand to bring in your household items from your country. If your permit grants you to stay for a year, these items will not be taxed. Otherwise, they will be taxed at a rate of 20% for import duty and 7% value added tax.
However, the deadline can be flexible. If you expect your items to arrive past the six-month deadline, you may inform the Customs two months before the deadline to request for an extension.
Disclaimer: This is not applicable on shipments arriving in some ports especially in Bangkok.
What you will do. Retirement in Thailand isn’t only about quitting your job. It’s an opportunity to have complete control over how you spend your time. Make sure you have a few ideas about how you will fill the eight or more hours per day you previously spent working and commuting. Some people miss the sense of purpose and friends that their job provided for them, while others finally have the time for hobbies and projects they have been waiting years to tackle