Thailand's foreign retirees see their good life slip away

[yong]

https://asia.nikkei.com/Economy/Thailan ... -slip-away

Thailand's foreign retirees see their good life slip away

Surging baht and new rules dull the country's allure for budget-minded expats

GEORGE STYLLIS, Contributing writer
March 05, 2020 14:31 JST


Pattaya has been popular with foreign expats and tourists since American servicemen flocked there during the Vietnam War. (Photo by George Styllis)

PATTAYA, Thailand -- From the mountains of Chiang Mai to the beaches of Phuket, Thailand has long been a draw for foreign retirees wishing to spend their golden years in tropical bliss. But for the many who have enjoyed paradise on the cheap, their dreams are ebbing away as the country opens up to a wealthier class of retirees.

The Thai baht rose to a six-year high against the dollar last year to become one of the world's most stable currencies. Though it has depreciated in the past two months, it is still significantly stronger compared to three or four years ago. Seen as a safe bet amid the U.S.-China trade war, the baht has caused visitor numbers to drop and hotel occupancy rates to halve.

But for those living here on fixed savings or pensions, the baht's strength has decimated their income. British expats have lost about 30% of their purchasing power following the pound's plummet in the wake of Brexit.

The financial squeeze comes amid changes to visa rules for retirees. As of February last year, foreigners must have a security deposit of 800,000 baht ($25,364) in a Thai bank account for two months prior to application or a monthly income of 65,000 baht; or a combination of the two totaling 800,000 baht.

Applicants must now also have health insurance. For someone aged 75, for example, that is a "big problem" as the premium could be as much as 100,000 baht per month, said Sebastian Brousseau, CEO of Isaan Lawyers.

The stringent regulations have caught many elderly expats used to a free and easy lifestyle off guard, with many fearing for their future. Here in Pattaya, a coastal city with a big retired community, the sense of desperation is palpable.

"Life in Pattaya has been getting worse for people ever since the economic crisis and since a few years ago," said Leng Leng, who runs Mercy Pattaya, a local Christian charity.


Two men watch the world go by in Pattaya, a coastal resort with a big foreign community that is being squeezed by a strong baht and new visa rules. (Photo by George Styllis)

Pattaya has been a haven for expats ever since American servicemen flocked here for sun and sleaze during the Vietnam War, turning a sleepy fishing village into Asia's sin city.

Gerry, a U.S. Navy veteran who declined to give his last name, first visited back then and has stayed ever since. At 83, alone and estranged from his family, Gerry has built his life here. But barely able to cover his living costs, let alone the deposit he now needs for a visa, he feels trapped, having been "out of the U.S. system" for more than 30 years.

"I'm too old and too scared to go anywhere else," he said.

Gerry does not own property here, but for those who do, a downturn in the real estate market has dashed their chances of a quick sell.

Demand for properties has waned since last year as many expats, disgruntled with Thailand's tightening immigration system, have moved to other parts of Asia, while China has imposed new controls to curb capital flight, said Jean Charles, the founder of TwoFlat Real Estate. The situation has intensified Thailand's glut, which is set to worsen with arrival numbers decimated by the new coronavirus.

Yet amid this turmoil, the country has been unflinching in its bid to capitalize on the world's aging populations, promoting Thailand, with its sunny weather and affordable health care, as a place to age with dignity.

Thailand issued almost 80,000 retirement visas in 2018, an increase of 30% from 2014, with Britons accounting for the bulk.

Research by Kasikornthai Bank estimated that in 2016, there were 68,300 foreigners over 50 years old holding long-stay visas, a 9% increase over the preceding two years.

The market's niche but lucrative potential is prompting huge investment from health care operators.

The Thonburi Healthcare Group launched Jin Well-being County in 2018, a 3.7-billion baht retirement city complete with a hospital and apartments aimed at wealthy Thais and Asians. The group plans to build a 43-hectare facility in Krabi targeting largely Westerners in the coming years, said Jin Well-being manager Ken Chen.

"It'll be more like a five-star hotel," said Chen.

At 99,000 baht per sq. meter, Jin Well-being's apartments are not cheap, but for foreigners they could help bypass some of the stringent retirement visa rules, said Chen.

Bolstering this bid for wealthy retirees, the government has been successfully promoting an elite visa scheme, with options for five-, 10- and 20-year visas ranging from 500,000 baht to 2 million baht.


A resort in Thailand. © AP

Applications among retirees jumped on average 34% between 2016 and 2019 amid record growth, after citizenship advisory firm Henley & Partners Group was appointed as exclusive global concessionaire for the program.

By avoiding the need for annual renewal, the elite visas offer "longer-term certainty" for those wishing to live or invest here, along with other "bells and whistles," said Dominic Volek, Henley's Head of Southeast Asia.

The bid to lure wealthier individuals has made many here feel they are being squeezed out, said Darren Low, owner of The Sportsman pub in Pattaya.

Yet Low is hopeful that with Thai economic growth dropping to a five-year low last year and tourist arrivals forecast to drop as much as 50%, the government might look to expats to buffer the economic impact.

A positive sign came earlier this year when the government quietly dropped a revived immigration law that drew heavy criticism, days after China announced a ban on overseas tours to contain the coronavirus.

Meanwhile, relief from the baht is expected after it softened at the start of the year, following the central bank's announcement that it will relax rules on capital outflows to weaken the currency.

Yet Low has noticed many around him have already abandoned themselves to despair, drinking heavily as their once-rosy vision of Thailand turns bleak.

"People are just deteriorating," said Low.

Even if the government does throw them a lifeline, it may be too late. "It probably already is," he said.

[phuketrichard]

well, its not allways what someone says, even a lawyer

The financial squeeze comes amid changes to visa rules for retirees. As of February last year, foreigners must have a security deposit of 800,000 baht ($25,364) in a Thai bank account for two months prior to application or a monthly income of 65,000 baht; or a combination of the two totaling 800,000 baht.

For the past 5 or so years we have had to show 800,000 in the bank 3 months before we applied for the extensions
what they left out was the additional change of,
that the 800,000 MUST remain in the bank for an additional 3 months after the extension is issued and than 400,000 must be left in the bank the remainder of the year. Before we could withdraw all the 800,00 if we wanted to
and the 65,000/month must be ONLY from a foreign source.

Applicants must now also have health insurance. For someone aged 75, for example, that is a "big problem" as the premium could be as much as 100,000 baht per month, said Sebastian Brousseau, CEO of Isaan Lawyers.

This ONLY applies to those seeking an O-A non O visa in their home countries,not the majority of retirees that live here on a 1 year extension for being over 50

Thailand issued almost 80,000 retirement visas in 2018

Thailand immigration does NOT issue retirement visas, They do issue 1 year extensions

Nor did they mention that for the sum of around 22,000 baht, you could bypass the banking requirements of 800,000.


and they call themselves lawyers, what a fucking joke

[atst]

CEOs the best source for information

[ExPenhMan]

Applicants must now also have health insurance. For someone aged 75, for example, that is a "big problem" as the premium could be as much as 100,000 baht per month, said Sebastian Brousseau, CEO of Isaan Lawyers.

PhuketRichard wrote:

This ONLY applies to those seeking an O-A non O visa in their home countries,not the majority of retirees that live here on a 1 year extension for being over 50

PR, If you were originally on a O-A based retirement visa like me (yes, it's actually called a Long Stay Multi-Entry visa) and did yearly extensions based on retirement, you must buy approved Thai-vendor-only health insurance if you wish to renew your extension. I face that at my (never gonna happen) renewal in August. It's just not only for new or renewing O-A visa applicants.

Many are switching to the Non-O visa based on marriage, or support of a Thai child, or joining a volunteer organization or based on retirement, as health insurance is not required for the Non-O visa. Many Thai consulates and/or embassies, however, do not offer the retirement option. But some do, so expats are flocking to the ones that still do offer the O based on retirement, each office imposing different requirements.

[Ghostwriter]

Well beetween the old timers who didn't manage to get skilled into something useful for the society hosting them, or the ones who didn't take the time to learn the language and use it to interact on a less superficial level, or who came there just for the naughty side of it, or came here because they were cunts elsewhere, or followed a friend without thinking it through, and i guess that's a lot, i wouldn't feel surprised or much sympathetic to their "destination fucked" situation.
Drinking heavily, as mentionned, sums pretty much their will to live the life. And is quite a budget too, i guess.

For the Brits lot who don't check the above list, that's a shit situation for sure moneywise, and i feel sorry for them. The other affordable countries around are not an easy option, especially health wise, and over 70 years old, moving on your own to Vn or Cambodia must feel like swimming far away from the coast at night, so to say...

Is it allowed to have a small business, with a retirement visa ? Anything, various crafting, gardening, school-study support, digital, mecanics, anything ?

[phuketrichard]

Applicants must now also have health insurance. For someone aged 75, for example, that is a "big problem" as the premium could be as much as 100,000 baht per month, said Sebastian Brousseau, CEO of Isaan Lawyers.

PhuketRichard wrote:

This ONLY applies to those seeking an O-A non O visa in their home countries,not the majority of retirees that live here on a 1 year extension for being over 50

PR, If you were originally on a O-A based retirement visa like me (yes, it's actually called a Long Stay Multi-Entry visa) and did yearly extensions based on retirement, you must buy approved Thai-vendor-only health insurance if you wish to renew your extension. I face that at my (never gonna happen) renewal in August. It's just not only for new or renewing O-A visa applicants.

Many are switching to the Non-O visa based on marriage, or support of a Thai child, or joining a volunteer organization or based on retirement, as health insurance is not required for the Non-O visa. Many Thai consulates and/or embassies, however, do not offer the retirement option. But some do, so expats are flocking to the ones that still do offer the O based on retirement, each office imposing different requirements.

in Phuket it ONLY applies to those on the O-A visa and not on the extension even if its based on that visa
and even if urs is that way, all u need do is leave when ur O-A runs out, get a Non O single entry in PP, Laos, Yangon, etc and base ur next extension on that<
never need (yet) buy insurance
OR whats even better
put 800,000 in a bank (anywhere) and go to Penang and get a 1 year non o multiple entry visa
no 2 months before, no 3 months after. Only need do visa runs every 90 days
Or
pay 22,000 to a visa agent and avoid all the ..

-------------

ON a retirement extension ur not allowed to work, same as Cambodia on an er extension.
you can have a small business etc or own whatever you want, but you wont get a visa for having it.

[Cowshed Cowboy]

Barring the couple of slight factual inaccuracies you can't really argue with the basic gist of the article. For the reasons cited I'm sure there is a slow drip feed of longtermers shipping out possibly not to be replaced. Such is life, nothing stays the same forever.

I don't get too hung up on the visa issue as given I go back to the UK every. 5 months it would be just as simple to get a tourist visa there twice a year, do a bit of regional travelling and come back in on a free entry 30 day for the end of a trip. Cost a bit more but I'd free up my 800k if not on the Non O. I wouldn't want to just yet but it's not a disastrous alternative if I didn't like any future changes.

One certainty is they will always need tourists.

[Robins]

I've also read if you have the 800,000 Baht in the bank you don't need the insurance. It bloody keeps changing. I have private American insurance that covers me worldwide.

[phuketrichard]

I've also read if you have the 800,000 Baht in the bank you don't need the insurance. It bloody keeps changing. I have private American insurance that covers me worldwide.

1st not true
2nd Insurance only needed for those on a O-A visa and in some places, extensions based on those visas
3rd does it include out patient care = to 40,000 baht?

Hasn't changed since it was first introduced last March 1st 2019

[Cowshed Cowboy]

A 20 minute visit to a sparse immigration to renew my annual visa extension today, restaurants that are opening advertising high percentage discounts to entice customers back in, no tourist buses clogging the place up, wonderfully quiet and peaceful seaside walking experience and hopefully a relaxed vibe when we can enjoy a beer in public in perhaps a few weeks time.

Looking like a better time to be a Thai foreign retiree again.