The value of a financial plan

New survey highlights a dire future for many Thais, especially the younger generations, writes Somruedi Banchongduang

- Somruedi Banchongduang

n recent months, Thais have faced a series of unsettling events. While the country awaits the impact of US tariffs, rising tensions along the Thai-Cambodian border add to the growing sense of unease.

Amid heightened uncertainty, the Thai economy is expected to remain sluggish until the end of next year. This prolonged downturn will inevitably affect household finances and savings.

Data indicates the majority of Thais lack savings and are unable to retire and maintain their quality of life. Nearly 30% of the Thai workforce has zero retirement savings.

Tuition fees at universities are rising at a rate that outpaces the cost of living, while up to 20% of small and mediumsized enterprises (SMEs) are forced to shut down within the first five years.

Hence, common suggestions such as save more, cut expenses or seek extra income may be insufficient. Instead, a comprehensive financial plan is necessary to safeguard people's financial future.

COMMON MISTAKES

A survey by Kiatnakin Phatra Financial Group (KKP) identified seven common financial mistakes many Thais make.

1. Not having a financial plan or realising its importance:

Some 66% of Thais say they think about financial planning - not a small number - but only 16% actually follow through and develop a plan. Among Baby Boomers, either retired or near retirement, only 20% have crafted a financial plan.

Furthermore, only 30% of Thais have enough money saved for retirement.

2. Planning for retirement too late: