KKP Reports 86% of Thais Lack Retirement Savings Plans
Kiatnakin Phatra Financial Group highlights a looming retirement crisis in Thailand, noting that most elderly citizens remain dependent on family or continued employment.
According to a report by Prachachat Business, Kiatnakin Phatra Financial Group (KKP) has revealed that 86% of Thai citizens currently lack a formal retirement savings plan. Dr. Pipat Luengnaruemitchai, Chief Economist at KKP, warned that Thailand is facing a 'getting old before getting rich' crisis. Data indicates that nearly 70% of the elderly population in the country still relies on financial support from their children or must continue working to sustain their livelihoods.
In response to these demographic challenges, KKP has partnered with Capital Group to launch six new investment funds specifically designed to address the needs of an aging society. The initiative aims to achieve an Assets Under Management (AUM) target of 30 billion baht within the next three years, offering an expected annual return of 6-7%.
For residents and long-term expatriates, this report underscores the broader economic shifts occurring in Thailand as the workforce ages. While these new financial products offer potential avenues for wealth management, individuals should note that these are investment vehicles subject to market risks. It remains to be confirmed how these specific funds will perform over the long term and whether they will successfully bridge the significant savings gap identified by KKP.
