PATTAYA, Thailand – Thailand is moving deeper into an ageing society, raising a difficult question for millions of people approaching retirement: how much money is actually needed to live comfortably after leaving the workforce? International estimates suggest that a person seeking a comfortable retirement in Thailand may need savings of around 10.4 million baht. The figure places Thailand 62nd among 95 countries in the comparison and puts the country above several Southeast Asian neighbours in estimated retirement costs.
Singapore ranks among the most expensive countries in the comparison, at about US$1.1 million, or roughly 36.3 million baht, followed by Iceland, Switzerland and Luxembourg. At the other end of the scale are countries such as Pakistan, India, Bangladesh and Egypt. In Asia, South Korea is estimated at about US$406,000 and Japan at around US$398,000. The figures reflect differences in living costs, social welfare systems, income levels and lifestyles. Within Southeast Asia, Thailand’s estimated retirement cost remains below Singapore but is higher than the Philippines at about US$301,000, Vietnam at US$295,000, Malaysia at US$292,000 and Indonesia at US$254,000. The figures raise an even more serious question: how prepared are ordinary Thais to finance their later years?
A report by the Thailand Development Research Institute (TDRI), titled Retiring Happily Requires Preparation: Thailand’s Retirement Welfare System, paints a worrying picture. A national survey found that 45% of elderly Thais had no savings at all, while another 44% had savings of no more than 200,000 baht. Together, that means almost nine in 10 elderly people have little or no financial savings.
The lack of savings leaves many older people dependent on their children, continued employment or government assistance. About 36% identified financial support from their children as their main source of income, while more than 30% of elderly people continued working after reaching retirement age. Nearly half of those who remained employed said they did so because they needed money for daily living.
For some foreigners choosing Thailand for retirement, the country remains attractive because living costs can be lower than in many Western countries and retirees can choose from a wide range of lifestyles, from major tourist destinations such as Pattaya and Chiang Mai to less expensive provincial areas.
A German retiree said Thailand offered manageable living costs and convenient services compared with Europe, but warned that housing, health insurance and long-term medical expenses needed careful planning.
“Having money for retirement is not just about having enough for monthly expenses. You also need savings for unexpected events.” A British retiree similarly viewed Thailand as an attractive destination because retirees can adjust their lifestyle to their budget. However, he said healthcare costs and long-term financial planning were particularly important. “If you have a lump sum but no plan for managing it, it may not be enough for another 20 or 30 years after retirement.”
For working-age Thais, however, 10.4 million baht can appear impossibly distant. Housing, transport, food, children’s education and debt often take priority over retirement savings, leaving long-term financial planning until later in life. TDRI found that around 86% of people had either not prepared a retirement savings plan or had been unable to follow the plan they made.
The challenge becomes even more serious for low-income elderly people. About 14% of older Thais rely mainly on the government’s elderly living allowance, which currently ranges from 600 to 1,000 baht per month depending on age. The allowance remains well below Thailand’s 2024 poverty line of 3,078 baht per person per month. TDRI estimates that around 30% of elderly Thais have incomes below the poverty line.
The issue, therefore, is bigger than whether 10.4 million baht is enough for a comfortable retirement. For many Thais, the more immediate question is whether they will have enough money to meet basic daily needs when they can no longer work. Thailand’s ageing society is making retirement planning increasingly important, while the country’s existing welfare and savings systems face growing pressure to provide greater financial security for people in old age.
