Australian Expats

Aussie Expats the big loser in bank deposit cut: $1.3b slash on accounts – Australian Expats Retirement

By June 10, 2019 No Comments
Australian Expats Retirement

Important Movements: Australian Expats Retirement

 

Australian expats who rely on earning interest from their AUD savings to fund their Australian Expats Retirement in Thailand will the biggest losers after the Reserve Bank slashed rates to a record low last week.

 

  • Income from AUD Savings set to drop further in 2019
  • All major Australian banks slashing interest rates before June 1st.
  • Almost 19% drop in AUD against the Thai Baht in the past 2 years.

Australians have more than $526 billion in cash safely stashed away in AUD bank accounts across the country with the promise of it growing through interest payments.

However Aussie expats retiring in Thailand have seen their retirement pots decimated in 2017, 2018 and 2019 with a huge slide against the rallying Thai Baht.

Aussie expats in Thailand have seen a -18.3% drop from a high of 26.7 in July 2017 right down to 21.7 as of June 2019.

 

 

This means that an Australian expats who is using Term Deposits as a form of retirement income are going be the hardest hit with the new rate cut.

In May and June 2019, more than 50 banks have slashed their term deposit rates across the country.

 

Australian Expats retirement alternatives.

With term deposit rates only getting an average of 2.4%  Australian expats would need to have over $1.1 million dollars in their deposit accounts to receive just 50,000 THB as a monthly income.

This has seen a massive influx of Thai based Australian expats take out international investments that have USD based returns of over 7% per annum thanks to the strong US stock market.

Want to know your options as an Australian expat in Thailand? Speak with an Australian qualified financial planner right here in Thailand who can help provide you with a rock solid retirement plan.

 

Book a free 1 hour consultation with our Australian qualified financial planner

Leave a Reply