Thailand’s surging baht is making life expensive for expats seeking an affordable retirement
- The baht is the world’s top-performer against the dollar over five years, hurting export competitiveness and tourism
- As a result, many expat retirees are having to cut back spending, or are leaving for cheaper destinations
The former aircraft technician easily bought a town house, pickup truck and motorcycle when he arrived at the age of 55 two decades ago. Back then the pound bought about 60 baht, but now it fetches a little less than 38 baht.
“It was a cheap place to live then,” Maxey said in the coastal city of Pattaya, which is popular with European retirees. “It’s not any more.”
The Thai government issued almost 80,000 retirement visas last year, a climb of 30 per cent from 2014. To qualify, foreigners must show a deposit of 800,000 baht (US$26,176) in a Thai bank or have a monthly income of 65,000 baht. Another route is to have income and deposits totalling 800,000 baht combined.
Britons accounted for the largest number of retirement visas in 2018, Immigration Bureau data shows. They were followed by Americans, Germans, Chinese and Swiss pensioners seeking affordable, sun-dappled golden years.
Once best known for crashing and sparking the 1997 Asian financial crisis, the baht is today seen as a haven by global investors. A trade surplus and annual foreign tourism receipts exceeding US$60 billion underpin its resilience.