Bangkok--22 Dec--AIA
Thai consumers are the most optimistic in the region about facing a financially secure retirement, yet their confidence is generally misplaced as the AIA ‘Life Matters’ Survey has shown.
The annual AIA ‘Life Matters’ Index survey into the Asian region’s attitudes to insurance and risk, commissioned by the American International Assurance Company Limited (AIA) covering Hong Kong, Singapore, Thailand and Malaysia, shows that Thais are generally optimistic about their retirement finances.
The survey reveals that the average age the majority of Thais would like to retire is aged 60, and some 61 percent of Thais believe they will have sufficient funds to retire on (based on their current savings patterns). This contrasts with just 24 percent of those surveyed in Hong Kong; 47 percent in Malaysia; and 27 percent in Singapore.
Yet Thais believe they need, on average, around Baht 2 million in retirement savings to cover their retirement needs. According to the Bureau of Savings and Investment Policy, Fiscal Policy Office, Ministry of Finance, the average amount of post-retirement income should be 50 percent of the person’s last salary to cover retirement. For example, if the person has a final salary of 30,000 Baht, he or she should have post-retirement income of 15,000 Baht a month for the rest of his or her life or until 80 years old. The total amount for this case will be 3.6 million Baht.
“Once again, our AIA ‘Life Matters’ survey is highlighting a misplaced optimism among the Thai consumer,” said Mr. Thomas J. White, AIA Thailand’s Executive Vice President and General Manager.
“The survey illustrates that there is a clear perception gap between what people think they need to secure their financial well being and the actual hard reality in terms of costs. In addition, only 26 percent of Thais actually have any form of post-retirement medical coverage. This compares with 34 percent of those surveyed in Hong Kong; 22 percent in Malaysia; and 51 percent in Singapore. Retirement savings can be badly impacted by long-term potential geriatric care medical costs as they get older,” he explained.
The proportion of the Thai population between working age and 60 has increased while the proportion of the population between 0-15 has decreased. Latest available statistics show that around nine percent of the population is 60 and above*. Ever improving health conditions and medical advances are leading to longer life expectancies and means that Thais face serious potential shortfalls if they do not plan well.
“These further ‘Life Matters’ findings from our 2006 Thailand survey again demonstrate that continued education is critical for the Thai market,” said Mr. White. “This is why we place such importance on our recently launched AIA ‘Financial Health Check’ program in Thailand.
“This is a process that enables AIA to assist customers to identify their financial goals in all critical aspects of their life, including; Family Income Protection; Education Financial Planning; Accident and Health; and Retirement Planning. Through the Financial Health Check we help establish priorities and assess available options to achieve financial goals, whatever stage in life the customer is facing, to provide a sound foundation to build a secure financial future and, ultimately, a comfortable retirement,” said Mr. White.
The “Life Matters’ Index is an annual regional survey, now in its third year, that assesses attitude towards protection and personal risk and measures people’s level of preparedness in the event of health problems and accidents. The independent study covers Hong Kong, Malaysia, Singapore, and Thailand and has been conducted by market research firm TNS. Data is collected via interview from a representative sample of n=1000 per market.
*WHO website: http://www.wpro.who.int/countries
About AIA
AIA has been operating in Thailand for more than 68 years. As of December 2005, the company has total assets of 299 Billion Baht and insurance reserves of 219 Billion Baht. Apart from ordinary life insurance, AIA offers accidental & health insurance, group insurance, credit life, payroll life, housing loans and provident funds.
AIA is one of the largest life insurers in Southeast Asia, with branch offices, subsidiaries and affiliated companies located in countries and jurisdictions including Australia, Brunei, China, Guam, Hong Kong, India, Indonesia, Japan, Macau, Malaysia, New Zealand, the Philippines, Singapore, South Korea, Taiwan, Thailand and Vietnam. AIA markets a full line of life insurance products through a multi-channel distribution system, whose core franchise is an extensive agency force. AIA is a wholly-owned subsidiary of American International Group, Inc. (AIG), world leaders in insurance and financial services.
For further information, please contact:
PR contactName: Pannawat Khlongnakrob or Kalayapas KulwongthanarojTel: 0-2653-2717-9
Email: [email protected] , [email protected]
AIA contactName: Napak SilasarpumpaiTel: 0-2638-7367Email: [email protected]