Retire in Thailand

Many people have a dream to retire in Thailand, because it has a cheaper cost of living than the West and consequently any retirement income will last longer.

But not only that, Thailand also has a tropical to subtropical climate, which is more suited to an outdoor lifestyle and for those people currently living in a temperate climate zone, with cold winters, there is the opportunity to spend the worst months in a place with a much warmer climate.

Many people find that the warmer climate helps to reduce the pains associated with arthritis and just general aging.

So, if you are on a limited income or even an unlimited income, then retiring to Thailand could be the option that is right for you, particularly if you are not averse to the high humidity.

A question many people have about retirement is, "how much do I need to retire in Thailand?"

So let's see how to answer this question below as there are more aspects to retiring in Thailand, than just having sufficient income.

Prepare to Retire in Thailand

Primarily, in this discussion I will outline a number of different strategies that I considered when planning a successful retirement in Thailand and how to pre-prepare for this life change that retirement presents.

One of the key elements for a relaxing retirement in any country is to be able to generate sufficient income to have a comfortable lifestyle once you have stopped working; that is, the money should keep on rolling in, no matter what.

You don't want to be worrying about future bills or variations in the exchange rate and so early planning is necessary.

The second element for a successful retirement is to have something to keep your mind occupied and fill the days doing the things that you love.

Whether that be a hobby or interest, such as photography or golf or some other interest that you can devote time to.

So there are two parts when considering retirement.

1. Pre-retirement
2. Retirement

If you are currently of pre-retirement age and interested in creating sufficient wealth to be able to comfortably retire in Thailand, then please keep reading.

There could be something here for you that elaborates on your own thinking, or guides you to a decision about your future retirement needs.

To stay in Thailand long term you will require the appropriate visa and then the permission to stay has to be renewed annually, and for that you will require some proof of income or cash in the bank.

Early planning is key here.

Thailand Retirement Visa

A Thailand Retirement visa can be obtained in Australia or in Thailand and there are slightly different application costs and financial requirements that apply. 

Obtaining a Thai Retirement Visa in Australia

If you are an Australian National or Permanent Resident, then the process to obtain a Thai Retirement Visa whilst in Australia is explained here. 

There are three visas available from the Royal Thai Consulate. 

• NON-IMMIGRANT VISA TYPE O Retirement - 90 days
  
  
• NON-IMMIGRANT VISA TYPE O-A - 1 year
  
  
• NON-IMMIGRANT VISA TYPE O-X - 5 years + 5 years

Obtaining a Thai Retirement Visa in Thailand

It seems that the majority of applicants conduct the visa application process in Thailand and so that is what is explained further. 

To be able to stay in Thailand, it is necessary to establish that you have sufficient funds to do so, as part of the visa application or renewal process.

The requirements for the Thailand Retirement Visa are:

1. You must be 50 years or older
2. You must meet the financial requirements
3. You must hold a valid passport with at least 18 months remaining (from date of planned entry)
4. You must not have any prohibited disease
5. You must not have criminal history

A one-year retirement visa allows you to stay in Thailand for 12 months and thereafter you can apply for an extension of stay.

During this period you are not allowed to be employed in Thailand and you are required to report to the Immigration Office every 90 days.

Although generally referred to as a Retirement Visa, the correct title for this is:

• Non-Immigrant Visa  “O-A” (1 Year Long Stay)

This is what most retirees seem to opt for, but be aware that there is also the:

• Non-Immigrant Visa  “O-A” (5 Year Long Stay)

with higher financial requirements, but the funds can be in Australia or your home country.

Thailand Retirement Visa Requirements

Whilst the financial requirements seem straightforward, they can be interpreted in different ways by different immigration offices and so you should know what is required to obtain a retire in Thailand visa.

The Thailand Retirement Visa requirements are:

• Must be 50 years old and above
  
  
• Bank account showing THB 800,000, or

• Monthly income of THB 65,000, or 

• Combination of both (Bank account plus income = THB 800,000

The purpose of these requirements is to demonstrate that you have sufficient funds for your 12-month stay. 

Of course it only makes sense that the retiree has sufficient funds to support themselves and these numbers are definitely on the conservative side, as it is possible to live in Thailand on less then THB 65,000 per month.

When planning to retire in Thailand, a good source for all of the visa requirements is laid out in the official Thai Government website.

Once you have obtained your retirement visa there are certain conditions about reporting, about renewal and about leaving the country that all have to be considered, to ensure that your permission to stay does not lapse.

I am not going to explore these retirement visa details at this point, as they can be specific to your situation. Applying for a retirement visa in Thailand is not the only path. 

What is important for the purpose of this discussion, is that the retiree needs to have THB 800,000 to start with and if this is being spent at the rate of THB 65,000 per month, a way to replace this money, either by capital growth or by draw down from your assets.

After one year, an extension of the retirement visa is obtained, once again being able to demonstrate, either THB 800,000 in the bank or monthly remittances of THB 65,000.

Using the exchange rate of September 2019, these are the approximate local currency equivalents.

• THB 800,000 ~ USD 26,000 = $2170 per month
• THB 800,000 ~ AUD 38,500 = $3200 per month
• THB 800,000 ~ GBP 21,400 = £1780 per month

Using the exchange rate of September 2023, these are the approximate local currency equivalents.

• THB 800,000 ~ USD 21,694 = $1808 per month 
• THB 800,000 ~ AUD 32,164 = $2680 per month
• THB 800,000 ~ GBP 18,941 = £1578 per month

If you wish to verify the current exchange rate for your country then use this exchange rate calculator.

Depending upon the currency involved, there has been an 11-20% move in the exchange rate over this period, so you need to allow some buffer in your retirement calculations.

Cost of Thailand Retirement Visa

The cost of the Thailand Retirement Visa is:

• 1-Year Thai Retirement Visa (Single-Entry): 2,000 Thai Baht
• 1-Year Thai Retirement Visa (Multiple-Entry):  5,000 Thai Baht

Thailand Exchange Rate

One area to consider, is that if you are remitting foreign funds into a Thai bank each month then you are subject to an exchange rate variation risk, as mentioned above.

This exchange rate variation can cause a problem for retirees on a fixed income, if there is an adverse exchange rate move. So it pays to have ample buffer in any retirement calculations.

As an example, the THB / AUD exchange rate has gone from 32 baht / dollar in 2012 to 21 baht / dollar in 2019 to 24 baht / dollar in 2024.

The long term average exchange rate though is 26 baht / Australian dollar, but one needs to be able to weather these extreme situations or your ability to retire in Thailand will be affected, as you will not be able to meet the financial requirements for the retirement visa for the coming year.

Using the foreign currency exchange rates above, a retiree with a pension of AUD 2,500 per month would have

$2,500 x 32 = THB 80,000 in 2012

and then this would only be

$2,500 x 21 = THB 52,500 in 2019.

In 2012 the pension was enough to meet the requirements and in 2019 the pension was not enough. 

This is not a good situation to be in, as you may have made other financial commitments to living in Thailand.

For example perhaps you purchased property, got married, had children. (there are lower financial requirements for the marriage visa compared to the retirement visa)

Even so, it can be the cause of extreme concern if you find yourself in the position where your income is no longer enough to meet the visa extension requirements.

Any financial planning has to take account of this type of currency fluctuation and it is important to allow sufficient income variation to be able to manage future Thai baht exchange rate changes.

Of the currencies discussed, there has been an 11-20% variation, so allowing a buffer is a wise choice when planning for retirement in Thailand.

How Much Money Do You Need to Retire in Thailand

To be able to estimate how much money is needed to retire in Thailand and produce an income of 800,000 THB per year, some assumptions have to be made.

Let's assume the future exchange rate is 25 baht / AUD and that the return on invested capital is a conservative 5%.

800,000 THB / 25 = $32,000 AUD

$32,000 AUD / 5% = $640,000 AUD

To produce an income of 800,000 THB then retirement capital of $640,000 is required based on the given assumptions.

That number is a little bit daunting to say the least and I would be fairly confident that many retirees coming to Thailand would not have access to that amount of capital.

The above example assumes that all the 800,000 THB is spent and the total amount has to be replenished, either monthly or at the end of the year, so obviously living more cheaply is one option.

Rather than relying upon dividend income from your investments, what are the other options available to create an additional income stream to make your income at least 800,000 THB per year.

Thailand Retirement Side Income Ideas

Let's explore the idea of having some additional side income, to cover that exchange rate variation.

In time, the idea of earning extra money in retirement will be expanded, but for now a brief explanation is provided along with some possible options that create passive income.

These ideas may give cause for more consideration, depending upon whether you are saving for retirement or are already retired and need something to do, plus a little side income.

I will add Pros and Cons to each topic as I build out the concepts.

Retirement Side Hustles

Let's consider some possible retirement side hustles that will provide some side income to supplement the pension.

1. Property rental income
2. Website income
3. Writing
4. YouTube channel income
5. Stockmarket investment / speculation
6. Forex / Bitcoin speculation
7. Affiliate Marketing
8. Online Services
9. Australian Government Pension

Explore these smart ways to make money in more detail on this linked page and learn about the benefits of having different streams of income.

Australian Government Pension

So one source of income for retirees living in Thailand, is from the Australian Government Age Pension.

There are a few restrictions that people need to know about as part of the financial planning exercise, as the rights to a Government Age Pension depend upon certain factors and forward planning is necessary.

There are some rules to be eligible to recieve the Australian Government pension if you intend to live overseas.

Let's explore the complications.

• There is a minimum age to be eligible
• The pension is means tested, so your assets have to be below a certain threshold
• You should be in Australia when you apply
• There can be portability restrictions
• The Australian pension was designed to be paid to Australians living in Australia and so the benefits paid to expats may be reduced or depend upon your taxation status. There are certain portabiity requirements to meet, so that the Australian Government pension can be received overseas.  

Best Place to Retire in Thailand

Let's move away from the financial for a minute and think about where to live.

Well, this is completely out there, as what is best for one person is not best for another. No one can make this decision for you.

What do you think is the best place to retire in Thailand?

Do you like the beach, do you like the mountains, do you like the city life?

When I used to visit Thailand for my work, I would be asked in casual conversation by the office staff, "do you like the city or do you like the country"? 

At the time I did not understand the point of the question.

But over time I realised that what I was being asked was, "am I a family man" or "am I a playboy"?  

Thailand can accommodate both types of people, but you should know what category you fall into as that will influence where you choose to stay.

If you don't mind country life, going to bed at 20:00 hours and getting up at 05:00 hours then maybe the country is for you, but if you want to party until 03:00 hours and sleep in until midday the there will be a city for you also.

Whether that city is Ubon Ratchathani for the country or Bangkok / Pattaya / Phuket for the party life you can find a town in Thailand that suits your life stage.

Most importantly, checking out all the options first, before making any substantial financial commitment is essential.

One mistake I see many retirees making in the early stages is committing to the purchase of real property, far too early in the relocation process. 

Learning about an area by taking a short-term rental first, is a good way to gain knowledge of the environment before making a bigger commitment.

Planning to retire in Thailand is a big move and it is wise to make early preparations and not to lock yourself into anything before proper evaluation.

Hopefully this page will give you some ideas for planning your Thailand retirement years.

People also ask:

Retire In Thailand Conclusion

Retiring in Thailand can be a fantastic option for you, with its tropical climate, stunning landscapes, rich culture, and affordable cost of living.

The Thai people are welcoming, and quality healthcare facilities are readily available, making it an attractive choice for retirees.

To retire in Thailand, you'll need to obtain a Thai Retirement Visa, also known as the Non-Immigrant O-A Visa, which allows foreigners aged 50 and above to stay in Thailand for an extended period.

As you consider retiring in Thailand, you'll want to think about the lifestyle and activities you can enjoy. From exploring cultural sites to engaging in outdoor activities and participating in community events, there's something for everyone.

You'll also find retirement communities and services tailored to your needs. Practical considerations like healthcare, cost of living, transportation, and safety are also important.

With some planning, you can make the most of your retirement in Thailand and enjoy a relaxed, fulfilling lifestyle.

Revised 4-December-2024

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