Thais 'unprepared for retirement'

According to a study of 600 locals carried out by Axa Group, the average Thai starts planning for retirement when they turn 43.

Some start much later, when they reach 50 years of age.

The findings place the Kingdom near the bottom of 26 countries surveyed by Axa.

This shows the Bank of Thailand's concern that there is a lack of a social safety net to support the population of those age above 60, which is expected to comprise 30 per cent of the population in the next 20 years.

According to the bank's latest study by monetary policy specialist Kobsak Pootrakul and economist Anuk Serechetapongse, Thais who are living longer could pressure the workforce unless there are adequate policies to deal with the problem.

On average, Thai men and women are expected to live until they are 79 and 82 respectively.

The bank has suggested that the retirement age be extended from 55 to 60, and eventually to 65, to cope with this trend.

Saifon Sutchasila, Krungthai-Axa Life's chief marketing officer, believes Thais are aware of the importance of retirement planning but many start preparing a bit too late.

Axa's survey reveals that 65 per cent of those in the low-income bracket, who will see their living standard decline by 40 per cent upon retirement, would want to see the minimum retirement age be raised, with female respondents wanting the new ceiling set at 62 years old.

Many locals are generally poor savers, said Adisorn Sermchaiwong, executive vice president overseeing savings and investment products at Siam Commercial Bank.

Of 300 retirees surveyed by Axa, the average person saves Bt3,957 a month, a relatively low amount. Working adults save less, at Bt3,167 a month.

Higher-income workers are able to record higher amounts.

The statistics reflect the criteria - mainly good health and "sufficient retirement income" - given by Thais about their retirement plans.

As much as 31 per cent of those surveyed believe they can find some form of supplementary income when they retire. But only a third are able to fulfil such a goal, with the majority of them in the Central region.

However, despite the sobering figures, Thais are the most optimistic about the future.

About 70 per cent believe their retirement life will be better than their current working life.

Those from the Northeast are the most positive, while urban dwellers in Bangkok are the biggest worriers.

The top three favourite retirement activities are looking after the family, gardening and travelling. For some, retirement is not an endless, perpetual holiday. Half of the retirees surveyed spend most of their time looking after children or grandchildren.

Ki Nan Tsui

The Nation