Bangkok, June 20, 2014 ? The SEC encourages asset management companies to set up post retirement funds as investment alternative for retirees. The funds provide unit holders continuous payouts and thus help prevent the retirees from using up all retirement savings.  

Duangmon Chuengsatiansup, SEC Assistant Secretary-General, said the SEC encouraged all asset management companies to set up post retirement funds as new investment choices for the retired with demand for regular payouts and return from their retirement benefits. The fund?s portfolio will be allocated to invest in not too risky assets but offering return to outpace increase in product and service prices; accordingly, suit the retirees having limited investment knowledge or favoring financial experts to manage their money. In Thailand, a few post retirement funds have been established while the number of retirees keeps growing rapidly. Other countries, Australia, for example, see the importance of this type of fund to promote self-reliance of the elders.

Post retirement funds will offer investment units to the retirees or the aged, such as those who are 55 years old or above and the proceeds will be invested primarily in low risk assets, including government or corporate bonds and deposits. The asset management companies might offer investors certain options on terms and payout periods or allowed them to customize their own conditions; payout of 5,000 baht a month until reaching 80 years of age or 10,000 baht a quarter until death, for instance. Retired members obtaining money from provident funds can continue their investment in the post retirement funds to receive regular and constant income. Aside from the investment returns, the funds might offer other privileges such as health insurance or annual check-up package.

?Financial management is important for everyone, in particular working-aged persons. They should invest in financial products suitable for their risk appetite and tolerances, either by allocating their own assets or investing in target date funds to ensure that they will not outlive their savings. Meanwhile, as the retirees should efficiently manage their retirement savings, post retirement funds will be a well-responsed choice providing a constant fund source which prevents them from using up all money within a few years. Therefore, asset management companies should take this business opportunity to develop new products in response to increasing demand,? Duangmon added.