Living to 90 could mean saving THB3.57 million more for retirement
A Bangkok Bank case study shows how planning for retirement to age 90 rather than 80 could require an extra THB3.57 million in savings.
Planning for retirement until age 90 rather than 80 could require an additional THB3.57 million in savings, according to an illustrative calculation by Bnomics by Bangkok Bank, highlighting the financial risks of living longer than expected.
What an extra decade could cost
The example considers someone who starts planning at 40, retires at 60 and wants monthly spending equivalent to THB20,000 in today’s money. With annual inflation assumed at 2%, that spending would rise to approximately THB29,719 a month by retirement.
Under the calculation, funding retirement until 80 would require approximately THB7.13 million, compared with THB10.70 million until 90. The retirement savings estimate assumes that investment returns after retirement keep pace with inflation.
Starting with no savings at 40 and assuming average annual returns of 2% during the following 20 years, the person would need to save approximately THB24,000 a month for the age-80 target, or THB36,000 for age 90. These are illustrative estimates rather than a universal savings requirement.
Longer lives increase the planning challenge
World Bank data show that life expectancy at birth in Thailand rose from approximately 50.6 years in 1960 to 76.6 in 2024, an increase of about 26 years over more than six decades.
The Bnomics analysis highlights “longevity risk”: the possibility of outliving the financial resources set aside for retirement. It cites National Economic and Social Development Council projections that Thailand will become a super-aged society in 2033, with older people accounting for nearly one-third of the population by 2040.
Savings, healthcare and long-term care pressures
Figures cited in the analysis show that 44.6% of older Thais have no savings, while approximately one-third still work to earn an income. More than half of those with savings have less than THB100,000, leaving limited reserves to support a potentially lengthy retirement.
Healthcare presents another financial risk. WTW’s 2026 Global Medical Trends Survey projects a 10.8% increase in medical costs in Thailand’s health insurance market in 2026, substantially above general inflation.
The Bnomics analysis also cites World Health Organization data indicating a roughly 9.5-year gap between life expectancy and healthy life expectancy in Thailand. Longer lives do not necessarily mean remaining in good health throughout retirement, making provision for illness and care an important consideration.
Long-term care needs are also expected to grow. A World Bank report projects that the number of people over 80 requiring assistance could rise from approximately 400,000 in 2017 to nearly 2.5 million in 2037, an increase of about sixfold.
Smaller families and work commitments may make relying solely on children or relatives for care more difficult. Meanwhile, retirement can reduce or end employment income without removing continuing expenses for food, housing, transport, healthcare and personal assistance.
Planning beyond the savings target
The analysis advocates combining financial preparation with health planning: estimating future expenditure, maintaining separate emergency and medical reserves, and saving and investing regularly.
Health insurance, critical illness cover and products providing retirement income may also form part of an individual plan. The aim is to prepare not simply for retirement, but for the possibility that it lasts longer than expected.
Source: SpringNews
