A Thailand retirement beckons the baby-boom generation
Retirees worldwide are upgrading their lifestyle through Thailand’s mild weather, affordable cost of living, outstanding healthcare and welcoming culture
Thailand is hardly a well-kept secret as a location for retirees to spend their golden years. But over the next few decades, property professionals expect the inviting lifestyle to trigger a flood of retirees to the Land of Smiles.
‘The grey baby boomer is rising extraordinarily,’ Antony Picon of Colliers International Thailand told the Bangkok Post. ‘The positive consequences for Thailand could be substantial.’
Thailand puts out the welcome mat to pensioners with a retirement visa, open to residents of 50 and over, that specifies a minimum monthly income of 65,000 baht ($2,000, €1,400 or £1,200) or savings of 800,000 baht ($24,000, €18,000 or £15,000).
Alternatively, an investment visa is open to foreigners of any age with 10 million baht (about €200,000, $300,000 or £180,000), to put into property, state bonds or a bank account in Thailand.
A key attraction for many is, of course, the miniscule cost of living. According to the influential Mercer cost of living index, Bangkok is not only more affordable than Europe but also its neighbours such as Hanoi, Ho Chi Minh or Kuala Lumpur.
In Pattaya, which has a lively community of retirees from Europe and North America, the developer Terry Collins describes the potential lifestyle upgrade as ‘a total transformation’.
‘In this town, especially, even a modest budget can give you a millionaire lifestyle,’ he says. ‘Coupled with the weather and the sense of community, you get pretty much the kind of life everyone dreams of.’
A couple of recent developments confirm this appeal. A survey by Alliance & Leicester International found that 5% of Brits are already planning a Thai retirement.
Meanwhile, the Finnish government is considering setting up retirement homes in Phuket, which would offer retired Fins an enhanced lifestyle through greater value for money. The proposers of the scheme estimate that the costs of building a retirement village would be recouped in just eight years.
Expat web forums also suggest that what many retirees love most about Thailand is the opportunity for romance. But the official answer is golf.
For Peter Ton, the Dutch executive behind Hua Hin’s award-winning Baan Ing Phu development, golfing ranks high on most retirees’ checklists.
‘Golf is definitely one of the appeals for Hua Hin, which is probably the most upscale Thai resort town. Part of the appeal of Baan Ing Phuis that it is right next to the Black Mountains Golf Club, seen as Thailand’s best course, and near a selection of other great courses,’ he says.
Pattaya stakes a rival claim to be a golfing Mecca, with over 20 courses within a few minutes’ drive, including the well-known Siam Country Club. Phuket has its world-renowned Blue Canyon Golf Club.
On the other hand, the main concern for retirees, identified by the Alliance & Leicester survey as the leading worry for 22%, is healthcare – where Thailand is also ahead of the field.
The excellence of Thai healthcare is attested by an annual influx of more than a million health tourists from countries such as Japan and the United States, drawn by the winning combo of international standards and affordable bills.
In property, too, Thailand offers retirees a sophisticated offer with options to suit most tastes and wallets, says Cyrille Hareux of Bangkok-based real estate agency Company Vauban.
‘Each destination in Thailand has its own profile and at Company Vauban we specialise in offering the cream of developments in resorts such as Hua Hin, Pattaya, Phuket and Koh Samui,’ he says.
‘For instance, a retiree who loves tranquillity and nature will be drawn to a project like Baan Yamu on Phuket’s exclusive East Coast facing the spectacular Phang Nga Bay,’ he says.
‘On the other hand, someone who likes a buzzing atmosphere will prefer something like the Vineyards, a pool-villa project just outside Pattaya, with its host of leisure options just down the road. Bangkok can also be an excellent option at an upscale development like Le Monaco.’
But he advises prospective retirees to shop for the financial options that can enhance their financial standing as they approach retirement.
‘It can definitely pay to pick a development with a guaranteed rental income scheme. For instance, someone planning to retire at Baan Yamu can plan for retirement by buying a unit and making it available for rental for five years. This will earn them an instant discount of 25% or a guaranteed annual income of 6.5% of the price for five years,’ he says.
Alternatively, he sees potential savings in buying at projects in the process of completion.
‘There is a degree of risk, so I would not recommend anyone to take this route without seeking informed advise, but we have got customers discounts of, say, 20% on selected projects in the final stages of construction,’ he says.
In any case, he says, the investment returns are not the clincher.
‘In my view, it’s not just about the financial aspect. Thailand is called the Land of Smiles for a reason. In my experience, retirees flourish out here, enjoying the security, the opportunity to afford domestic help and the traditional respect for the elderly,’ he says.
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