A study to understand the factors that influence Thai first-jobbers...

A STUDY TO UNDERSTAND THE FACTORS THAT

INFLUENCE THAI FIRST-JOBBERS TO START

SAVING FOR RETIREMENT

BY

MR. WATTIKORN VITTAYAAMNUAYKOON

AN INDEPENDENT STUDY SUBMITTED IN PARTIAL

FULFILLMENT OF

THE REQUIREMENTS FOR THE DEGREE OF

MASTER OF SCIENCE PROGRAM IN MARKETING

(INTERNATIONAL PROGRAM)

FACULTY OF COMMERCE AND ACCOUNTANCY

THAMMASAT UNIVERSITY

ACADEMIC YEAR 2018

COPYRIGHT OF THAMMASAT UNIVERSITY

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Independent Study Title A STUDY TO UNDERSTAND THE FACTORS

THAT INFLUENCE THAI FIRST-JOBBERS TO

START SAVING FOR RETIREMENT

Author Mr. Wattikorn Vittayaamnuaykoon

Degree Master of Science Program in Marketing

(International Program)

Major Field/Faculty/University Faculty of Commerce and Accountancy

Thammasat University

Independent Study Advisor Associate Professor Nigel Barrett, Ph.D.

Academic Years 2018

ABSTRACT

According to Thai law after a person reach the age of 63, that person is

considered as retired person. Retirement age is the age that a person is expected to

withdraw from a job and major source of income is not earn by working. There are

many sources of income after retirement, which depend on the planning of the person.

Therefore, in order to live comfortably and worry free after reach retirement age the

financial planning after retirement is very important and better to plan ahead.

This study has 3 major objectives in order to find appropriate methods to

encourage Thai first-jobbers to start saving for retirement. Such objectives are 1) study

product related to money saving for retirement and their marketing communication

towards consumers, 2) explore Thai first-jobbers behavior and attitude towards saving

for retirement and 3) suggest appropriate marketing strategies to attract Thai first-

jobbers to start saving money for retirement.

There are 2 in-depth interview session. First the preliminary in-depth interview

will select professional in financial area and target audience with total number of 8

interviewees. After preliminary in-dept interview complete, final in-depth interview

will be conducted to find the insight and perspective of Thais first-jobbers toward

saving for retirement. The total number of final in-depth interview will be 25 people.

According to the theory of planned behavior, a person behavior will shape up

from 3 major key variables which are 1) personal factor or attitude, 2) social factor or

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subjective norm and 3) control factor or perceived behavioral control. The Finding

show that Thai first-jobber has negative attitude toward saving for retirement.

Moreover, the social factor around them are no support them as well.

This research presents the insight of Thai first-jobbers towards saving for

retirement and demonstrate recommendations to help turning the attitude of Thai first-

jobbers towards saving for retirement.

Keywords: First-jobbers, Saving, Retirement

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ACKNOWLEDGEMENTS

First of all, I would like to express my sincere gratitude to Associate Professor

Nigel Barrett, Ph.D. my independent study advisor, who has recommended great

guideline and show me different perspective as an experienced person. Every time I

asked him a question about the research, he always feedback me with valuable answer.

Moreover, he devoted his valuable time to arrange meeting in order to catch up with

my progress and make sure that the research is running on the right track. Without his

guidance I may not be able to complete this research in the way it should be.

Additionally, I would like to express my sincere gratitude to all respondents

for their valuable time to help me during the in-depth interview session. This research

would not have been complete without their honest collaboration.

Lastly, I would like to thank my friends and family for helping me along the

past 5 months. Those comments, advices and recommendations from them are pushed

my back to complete this research.

Mr. Wattikorn Vittayaamnuaykoon

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TABLE OF CONTENTS

Page

ABSTRACT (1)

ACKNOWLEDGEMENTS (3)

LIST OF TABLES (6)

CHAPTER 1 INTRODUCTION 1

1.1 Introduction to the Study 1

1.2 Definitions 2

1.3 Research Objective 2

CHAPTER 2 REVIEW OF LITERATURE 4

2.1 Type of saving and significant criteria to consider 4

2.2 How much savings are enough to retire? 5

2.3 Thais have a misconception about retirement planning 6

2.4 Thais saving habit is in crisis 6

2.5 Thais are overlooking at retirement plan 7

2.6 Theory of planned behavior 7

CHAPTER 3 RESEARCH METHODOLOGY 9

3.1 Research Design 9

3.1.1 Secondary Research 9

3.1.2 Primary Research 10

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3.2 Target population 11

3.3 Sampling Plan 13

3.4 Data Collection 13

3.5 Recruitment Plan 14

3.6 Data Analysis 14

3.7 Theoretical Framework 15

3.8 Limitations of the Study 15

CHAPTER 4 RESULTS AND DISCUSSION 16

4.1 Key Findings from Secondary Research 16

4.2 Key findings from First-Phase In-depth interview 17

4.2.1 Key Finding from Product Issuer 17

4.2.2 Key Finding from Sales Representative 19

4.3 Key Findings from Second Phase the Final In-Depth Interview 20

CHAPTER 5 CONCLUSIONS AND RECOMMENDATIONS 22

5.1 Conclusion 22

5.2 Recommendation 22

5.3 Future Research 23

REFERENCES 24

APPENDICES

APPENDIX A: FIRST PHASE IN-DEPTH INTERVIEW QUESTION 26

APPENDIX B: SECOND PHASE IN-DEPTH INTERVIEW QUESTION 29

APPENDIX C: LIST OF RESPONDENTS 31

BIOGRAPHY 32

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LIST OF TABLES

Tables Page

3.1 Sampling Plan 13

3.2 Diversity of Final In-depth Interview Respondents 14

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CHAPTER 1

INTRODUCTION

1.1 Introduction to the Study

Financial planning for retirement is important for everyone. The retired person

is a person who does not have active income from working. The example of active

income are salaries, wages, tips, commissions or an income from business that such

person is participate with. Therefore, retire person will solely live by savings or passive

income. The example of passive incomes is rental income from property, interest

income from owning financial assets and royalty interest. Theoretically, a retired person

who has sufficient passive income will be able to live more comfortably that a retired

person who does not.

Living after retirement is an important thing that every person should consider

and plan continuously. The better plan not only help a retired person to live

comfortably, but also safe certain amount of government expenses to support those

retired persons who unable to live solely by themselves. If people in the country can

take care of themselves after retirement with minimal government reliance, the

government will be able to use the cost saving to help other sectors or areas in the

country.

Planning for retirement require fundamental knowledge on mathematic and

financial area, which is not easy for every person to master. Therefore, many people

ignore the more complicate saving related product and only choose the easiest product

to understand which sometime does not result with the maximum benefit for

themselves.

At present there is a wide selection of saving related products, consumers can

access financial products comfortably. However, more than 80 percent of Thais first-

jobbers do not have enough saving to support their living for 6 months (TMB analytic,

2018). This figure illustrates the current problem of Thai society.

Factors that help influence Thai first-jobbers have not been clearly analyze.

Therefore, this research aims to find key influences which can lead Thai first-jobbers

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to start saving money for retirement. The study of these factors is directly associate with

societal issue in financial which is occurs in Thailand.

1.2 Definitions

1) First Jobbers

Thai people who in the early stage of career path and ages below 30 years

old.

2) Retired person

A person who ages above 60 years old and does not have active income

from working and living on passive income.

3) Saving for retirement related product

The saving related product which is design for passive income after

retirement such as LTF (long-term equity fund) and RMF (retirement

mutual fund)

1.3 Research Objective

1) Study product related to money saving for retirement and their marketing

communication towards consumers.

a. To learn about the products that are currently available.

b. To determine the product that appropriate to first-jobbers.

c. To understand scopes and regulations of advertising saving related

product.

d. To know the current trend and

2) Explore Thai first-jobbers behavior and attitude towards saving for

retirement.

a. To understand the concept and living in general of first-jobbers.

b. To identify the reason why first-jobbers do not have interest in saving

related product.

c. To identify the element that drive the willingness to save money

d. To measure the willingness to save money for retirement.

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e. To identify the channel where consumer prefer to study for both online

and offline channel.

f. To identify the criteria for purchase saving product.

3) Suggest appropriate marketing strategies to attract Thai first-jobbers to start

saving money for retirement.

a. To verify and Identify the key factors that help influence first-jobbers to

save money for retirement.

b. To provide new marketing strategies base on study findings.

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CHAPTER 2

REVIEW OF LITERATURE

The literature review is a part of secondary research, which provide both basic

and in-depth information about the current situation of saving related product and

consumer behavior towards saving.

2.1 Type of saving and significant criteria to consider

There are 4 major type of saving which everyone should know (Thai FCPC,

2018)

1) Saving for emergency: This type of saving is for emergency case such

as accident and health problem. This amount of saving should equal to

6 months of fixed saving.

2) Saving for leisure: This type of saving is short to medium term which

will be used to purchase any willing goods.

3) Saving for retirement: This type of saving is long term saving which is

for any expenses after retirement.

4) Saving to investment: This type of saving generates moderate amount

of passive income which can be found on product such as bonds, mutual

fund and property.

Apart from different type of saving there are 7 major criteria which general

people should carefully revised. Details are as follow:

1) Return on investment: In this case it can be in form of interest or

dividend depending on the saving product. The return on investment

should be on par with the market average. The higher return is not

reflecting most benefit to consumer, because higher return means higher

risk.

2) Inflation: The inflation is major aspect for people who choosing saving

product to concern, because inflation will directly affect the value or

each currency. Therefore, disclose return on investment of each product

will reflect actual value after deducted by inflation rate.

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3) Period of saving: The period of saving should correspond to the goal.

4) Liquidity of the product: It means the easiness of saving or investment

turn into cash. For example, bank’s saving deposit is high liquidity

product, because consumer can withdraw cash out within a day, but on

the other hand assets such as car, land or collectable goods are low

liquidity they require certain time to sell and turn into cash.

5) Fees and conditions: Each saving related product may have different

fees and conditions. Therefore, it is consumer benefit to revise all the

disclose fees and conditions carefully before taking any decision.

6) Withholding taxes: In general, return on deposit is subject to 15 percent

withholding tax, but there are certain types of savings that are exempt.

7) Deposit protection: Saving with financial institution will get a deposit

protection from Deposit Protection Agency of Thailand. Current

coverage amount is 10 million baht per account.

2.2 How much savings are enough to retire?

The term of retire may different among each person, but for this study in order

to understand to the same standards. Individuals who are over 60 years old and do not

receive fixed income will be counted as retire.

You need around 25,000 baht per month in order to have happy retirement.

Therefore, if general person retired at the age of 60 and living to the age of 80, that

person require at least 6,000,000 baht of saving on the retirement day (Thairath, 2018).

Retirement should be debt-free. Each person should have a residence without

any obligation with financial institution and can manage all expenses without disturbing

others. The simple calculation formula of amount of saving for retirement is as follows

(BAY, 2018):

Amount of saving for retirement = fixed expenses per month x 12 months x life

expectancy after retirement x 2

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2.3 Thais have a misconception about retirement planning

According to the research from Stock Exchange of Thailand and University of

the Thai Chamber of Commerce shows that 62 percent of Thais have a misconception

about retirement planning (Krungsri, 2018). The misconception can divide into 5 major

topics.

1) Overconfident and careless: Early plan will have a better result, Thais

start saving money for retirement at around the age of 42, which 12

more years than people living in United States (Nation News, 2014).

2) Do not understand the surrounding factors: Financial planning for

retirement require in-depth knowledges and experiences in financial

area, general planner may overlook the critical factor such as risks and

inflations.

3) Cost calculation error: Occur because expected monthly expenses is too

low compared to the average monthly expense of retire group.

4) Retire earlier than the plan: This directly affect the amount of saving at

the end of the plan.

5) Over expectation at provident fund: Many Thais have only one product

in their retirement plan which is provident fund. However, in 2018 there

are less than 50 percent of provident fund member that have more than

1 million baht worth of saving.

2.4 Thais saving habit is in crisis

Naris Sathapholdecha, the business unit manager of TMB Analytic has

announced their study which show that Thais’ current financial status is in crisis.

According to TMB Bank Public Company Limited database of 35 million Thais’

workers only 20 percent has enough capital to spend for more than 6 months with no

other income coming in. Furthermore, 56 percent of theirs saving is in the bank saving

account, which generates very low interest (TMB, 2018).

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2.5 Thais are overlooking at retirement plan

“Fifty-five percent of Thai household never consult with financial professionals

about financial retirement plan” according to the survey study appeared on (Society of

Actuaries, 2018, pp.27). More from the survey show that most Thais believe in article,

blog or review on internet more than professional financial advisor. Not every

information appeared online is accurate and each person has different level of

knowledge, experience and wealth. Professional financial advisor can consult the

inquirers with accurate information that will reflect more beneficial result for them.

This finding is another supportive evidence which show that Thais are unprepared for

retirement.

2.6 Theory of planned behavior

This theory explains that 3 majors key variables 1) attitude toward behaviour,

2) subjective norms and 3) perceived behavioural control combined together will shape

an individual's behavioural intentions and behaviours (Ajzen, I, 2002).

Figure 1: Theory of planned behaviour

According to the theory in order to persuade a person to change behaviour, that

person must has intention to do. The 3 things that can initiate such intention are

consisted of 1) personal factor or attitude, 2) social factor or subjective norm and 3)

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control factor or perceived behavioral control. Therefore, if 3 variables are verified

and resolve problems that interrupt a person to initiate intention change behavior, that

person might adopt new behavior.

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CHAPTER 3

RESEARCH METHODOLOGY

3.1 Research Design

This research was conducted by using both secondary research and qualitative

research. The secondary research was based on gathered data from trusted sources such

as published article, certified websites and academic journal. The qualitative research

was divided into 2 majors’ part. The first part was to gather information related to the

study and the second part was in-depth interview with the target respondents. The

number of in-depth interviews is 8 sessions for the first part and 25 sessions for the

second part. The target respondents were participated in in-depth interview session

during January 2019 – March 2019. Due to the limited of time to finish this study, this

research uses the convenience sampling method.

3.1.1 Secondary Research

The secondary research was conducted in order to achieve a deeper

understanding and additional knowledge of current situation of saving for retirement

related products in Thailand and Thais first-jobber thought toward saving for

retirement. All of the secondary data were collected from different sources such as

published article, certified websites and academic journal. In addition, in order to

authenticate the credibility of secondary data the publisher of each source are large

organization or state enterprise such as Bank of Thailand, Ministry of Finance,

Morningstar Thailand, Wealthmagik, The Stock Exchange of Thailand and Financial

Institutions.

Information gathered from secondary research are used to reconfirm that the

Thai first-jobbers are unaware of saving for retirement and help to provide basic

guideline to create proper questionnaire, which will use for in-depth interview sessions.

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3.1.2 Primary Research

The primary research is consisted of 2 in-depth interview phases as follows:

1) The initial phase

In order to avoid the mistake from in appropriate question in the questionnaire

which will use as a major tool to conclude the problem for Thais first-jobbers behaviour

toward saving for retirement the initial phase must be taken place.

The initial phase was taken place prior the final in-depth interview session by

using a draft questionnaire to interview with expert in the saving related industry and

potential respondents.

• Product issuer and sales representative: The information and

insight from professional is a must in order to create a solid list of

question for final in-depth interview, because currently there are

wide range of saving related products and it is better to understand

the overall market atmosphere. Moreover, according to the

secondary research the advertisement of saving related product are

under certain regulation. Therefore, it is a must to understand the

fundamental of this area.

• Target audience: To limit and control problems that might arrive

during final in-depth interview list of questions that will use during

the final in-depth interview will be tested by preliminary in-depth

with real target audience first.

The list of question that have covered during the in-depth interview are appeared

on Appendix 1.

2) Last phase the final in-depth interview

The key element of in-depth interview is to extract the insight of Thai first-

jobbers perspective towards saving for retirement. The total number of in-depth

interviews in this phase is 25 individuals. Questionnaire for the interview in this phase

was revised version of questionnaire from the first phase by removing the unnecessary

questions and adding more questions which will help to create productive interview

session with target respondent.

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The in-depth interview session time was approximately 30 minutes per session,

because the longer than 30 minutes session can affect the respondent answer to be bias

due to the mental fatigue and boredom.

The findings from this in-depth interview session will provide solid data, which

will extract into the key finding.

The list of question that have covered during the in-depth interview are appeared

on Appendix 2.

3.2 Target population

The details of both preliminary and final in-depth interview are as follows:

1) The initial phase interview: Product issuer

Number of interviewees: 2 people

Age: 30 years and above

Gender: male or female

Job function: Directly working in the saving related

product area and experienced with issue

such product.

Additional details: Interviewees will be selected from

different workplace in order to prevent

similar answer.

Length of time: 30 minutes

2) The initial phase interview: Sales representative




Job function: Directly working in the saving related

product area and experienced selling

saving related product.


different workplace and graduate major in

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order to prevent similar answer. All

interviewees must never purchase any

saving for retirement related product and

consult professional financial advisor

about retirement plan.


3) The initial phase interview: Target audience




Job function: First-jobbers









4) Final in-depth interview



Job function: First-jobbers









The list of respondents is appeared on appendix C

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3.3 Sampling Plan

The sampling plan for this exploratory research, due to the time constraint the

respondents are chose base on the convenient accessibility of to the researcher.

However, all respondents must pass criteria which mentioned in the target population

section. The Table 1 illustrated the sampling plan of the research.

Table 3.1: Sampling Plan

Phase 1 - The initial phase

Type of Research Methodology Sample size

Qualitative In-depth interview 8

Phase 2 – The final in-depth interview phase

Type of Research Methodology Pre-test

Qualitative In-depth interview 25

3.4 Data Collection

The first phase of in-depth interview was conducted during November 2018 –

December 2019. The total number of 8 respondents of the first phase of in-depth

interview were taken place either face to face or telephone interview. In the same way

as final phase of in-depth interview which was conducted during January 2019 – March

2019 by using face to face or telephone interview as well. All of the interview session

were recorded via an electronic form and handwritten for further analysis.

The question in the questionnaire which was using during the in-depth interview

session were semi-structured questions. The interview session was started by asking

general question such as lifestyle and daily routine. Later after get to know with the

respondent the questions related to study topic where then used.

However, in order to make the interview session go smoothly probing and

prompting were used to lead the respondent to feedback with desire topic.

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3.5 Recruitment Plan

This research is exploratory research, which used the information computed

from the in-depth interview session with target respondents. Due to the time constraint

the respondents are choose from convenient method. Most of the respondents are came

from personal connection of researcher by posting on Facebook and Instagram.

However, this research requires different perspective of respondent from

different expertise, the researcher try to mix respondent with different background and

business industry. The Table 2 presents diversity of the respondents

Table 3.2: Diversity of Final In-depth Interview Respondents

Gender

Gender Male Female

Number of Respondent 13 12

Age

Detail Lowest Average Highest

Age 23 26.44 30

Education

Degree Bachelor Degree Master Degree

Number of Respondent 19 6

3.6 Data Analysis

Data and information from final in-depth interview will be gather and use as

main evidence to complete the third objective of the study.

The voice record of interview session will be converted into text base by

creating a list of question and answer in order to simplify the information record from

interview session. The simplified information will be easier to understand and develop

into key evidence.

The key information extract from final in-depth interview will be grouped to

find similarity, which will help support the finding of each major key variables. The

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similarity will develop into pattern and from such pattern the connection between each

data will help create result that support the objective of the study.

The alikeness of information will help reduce the unnecessary information

gather from in-depth interview. This can create more precise result and develop into

exact key evidence.

Interpreting will base solely from the analyzed data, each finding will construct

into 3 major key variables which hare 1) personal factor or attitude, 2) social factor or

subjective norm and 3) control factor or perceived behavioral control base on theory of

planned behavior to develop appropriate way to influence Thais first-jobbers to start

saving for retirement.

3.7 Theoretical Framework

The theoretical framework was adopted in this study to set up a guideline for

researcher to be able to design the questionnaire. The framework of this research was

based on the theory of planned behaviour. Base on the mentioned theory the 3 major

things which can initiate intention of a person is 1) personal factor or attitude, 2) social

factor or subjective norm and 3) control factor or perceived behavioral control. This

research will extract the in-depth interview key finding into 3 part according to the

theory of planned behavior.

3.8 Limitations of the Study

1) All respondents are based in the Bangkok. Therefore, the insight of qualified

respondents in different city may result with different finding.

2) The findings from final phase in-depth interviews may not be able to use as a

standard preference for every first-jobber in Bangkok due to the small sample

size.

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CHAPTER 4

RESULTS AND DISCUSSION

4.1 Key Findings from Secondary Research

According to the literature review saving for retirement is a part of a person life,

that should not be overlooked. The better prepare will result with the better outcome.

The financial planning for retirement is not easy for every, actually its even complicate

topic for someone in financial area as well due to the regulation that can be changed

various time through the year and new invention for saving related product can result

with more effective plan.

There are long lists of criteria which a person has to prepare before entering the

retirement as mentioned in the literature. However, it is better for every person to know

the minimum requirement that should be pass before enter the retirement period. One

of the easy minimum requirements is that a retired person require at least 6,000,000

baht of saving on the retirement day to spend a comfortably life. To show this large

amount of number can attract attention of the listener.

Thais are living month by month and they save for spend on goods and stuffs

they want to get. On the literature review show that Thais saving habit is in crisis as

only 20 percent of Thai working age have enough money to spend for the next 6 months

without any new source of income and most of savings are sunk in the saving bank

account, which yield less than the inflation.

The hardest thing for Thai people to start planning about saving for retirement

is that the product available in the market is complicated and most of efficient product

require knowledge in financial to invest correctly. Therefore, a person who willing to

access these kinds of product require great financial advisor, who dedicate time to help.

However, to get such service from professional the investor must invest in large amount

of transaction, which cause first-jobbers unable to use this service. This caused the

hardship for first-jobbers to get a decent understanding about saving for retirement. The

only source available for the first-jobbers is public information online or simple product

that offer by bank.

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The secondary research provides solid picture of the saving for retirement

market in Thailand. The key finding from secondary research help create basic

guideline for the question that appearing on the questionnaire. Moreover, during the

interview session on both preliminary phase and final phase, there are several questions

appeared from the interviewees, which concerned about the current situation of saving

for retirement product in Thailand. Therefore, prepared information from the secondary

research help contributed smooth interview session and extract great insight from the

respondents.

4.2 Key findings from First-Phase In-depth interview

The in-depth interview for this study was divided into 2 phase first the

preliminary phase, which help create fundamental knowledge about the current

situation of saving for retirement and revised the questionnaire questions, before

perform a final in-depth interview.

4.2.1 Key Finding from Product Issuer

The first-phase of in-depth interview are starting from interview with the

product issuer who is working in mutual fund industry. There are 2 product issuers that

researcher interviewed with the key finding from both product issuer are as follows

1) Mr.Kasin

He used to work in banking industry and currently working as a fund manage

in Fund Management Company. He also has level-3 CFA license, which is a license

that give to the professional in finance field the level 3 is the highest level and in order

to work in fund management field the level-3 CFA license is a must.

Mr.Kasin explain about the current situation of saving for retirement related

product that the Fund Management Company does not pay a lot of attention on this kind

of product due to lack of interest from the public. The reason behind that is due to the

more risk product such as fund that invest in stock market can present high return on

investment, but for retirement related product the regulation is limited the fund manager

to only invest in low risk product that sometimes result with less return on investment

than those with higher risk. This caused fund management company to launch product

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that is not tailor for retirement market. However, he mentioned that for himself he has

diversified his saving portfolio into different risk level product to ensure that he could

get the most efficient return on investment as much as possible.

The finding from Mr.Kasin is that people still do not understand about the risk

diversification and only look at high number without concern about the risk of loss on

investment.

2) Mr.Dhitiwat

Mr.Dhitiwat used to in mutual fund industry for 8 years and currently start his

financial advisor company for 2 year. His company is specialized on matching high net

worth investor with great opportunity for investment

Mr.Dhitiwat said that the regulation from government that support people to

save is in the wrong direction. The government try to support people to invest in LTF

and RMF that help reduce the tax expenses, but he said that only group of persons who

pay a lot of taxes will benefit from this kind of regulation. The first-jobber does not

have a lot of salary with result with minimal tax expenses per year. As the result they

will ignore the support from government that want to turn people to invest more on the

mutual fund. He said that the government should design the regulation that help middle

to lower class people more than only support the upper income class segment. He

mentioned that currently the government support people to spend more than save such

as give 500 baht to every people who hold the government welfare card and help people

get 10,000 back from shopping as taxes reduction. Lastly, he mentioned about example

of supportive campaign such as saving in the RMF or retirement mutual fund and

government will add up 1,000 bath more.

The findings get from Mr.Dhitiwat are sharing the same way as Mr.Kasin, but

the point where he mentioned about the government support is explained that if

government can support the public in better way, people will start saving correctly.

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4.2.2 Key Finding from Sales Representative

During the first phase of in-depth interview 2 sales representative of saving for

retirement product were interviewed. The key findings from interview session are as

follows:

1) Mr.Chatpannga

Mr.Chatpannga is working as sales representative of Fund Management

company for more than 12 years. Currently, he holds the title of sales manager.

Mr.Chatpannga said that the product that specialized design for retirement is

fading away from the market, due to the strict regulation that government has controlled

the issuer and sales representative. The salesperson must explain every detail of each

product. Therefore, the small transaction amount that first-jobbers could afford to

purchase will be overlooked by the salesperson due to the time-consuming session with

low amount of return. Currently, the trend for saving related product is aims to high net

worth investor, because the salesperson has to do the same amount of work, but the

amount of return is greatly different.

Finding from Mr.Chatpannga shows that the salesperson also seeking for the

work that result with attractive return. Therefore, it will be hard for first-jobbers to get

support from salesperson.

2) Ms.Ratri

Ms.Ratri is senior salesperson, who specialized on mutual fund related product

with experience as salesperson for more than 7 years.

Ms.Ratri said that most of salesperson is aims at high net worth customer, but

in reality the high net worth customer is hard to get and harder to retain. Most of

Ms.Ratri customers are middle size transaction, which has higher chance to reinvest

their capital, with this style of customer portfolio Ms.Ratri does not have to search for

new customer frequently. For the first-jobbers market, Ms.Ratri does not think that

salesperson will take this group of customers seriously due to the return from

commission is low.

Finding from Ms.Ratri shows that salespersons may show an interest in

recurring commission fees as well due to seeking for high net worth customer is hard

and the cost of retain them is extremely high.

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4.3 Key Findings from Second Phase the Final In-Depth Interview

After gather all information from the first phase in-depth interview from both

professional in financial field and potential respondents, the final in-depth interviews

were taken place. The key findings

1) Amount of salary is not the main factor, but income management is a thing

that overlooked.

From total number of 25 in-depth interview session all 25 respondents are office

workers with the highest salary of 75,000 Baht and the lowest salary 21,000 Baht. The

average salary 32,420 Baht. Every respondent never plans about the retirement. More

than half of respondents do not plan to save a portion of salary each month. Some

respondents also mentioned that their salary is not much so they do not think that a little

saving each month could change anything. A sample of responses are as follows:

“I do not think saving 5 to 10 percent every month could change my financial

status.” – Ms.Juthapon, 24.

Moreover, the Thai first-jobbers also overspending. 14 out of 25 respondents

still get extra income from their family and they spend most of the income every month.

The common reason to save money for them is when they are going to buy expensive

goods such as mobile phone, luxury brand clothing and hanging out with friends.

2) Convenience comes first

The only common way when is come to save money is going to a bank and

deposit into saving account. The reason that most of the respondents choose saving

account as a major tool for save is because they think that it is the most convenience.

Moreover, more than half of respondents are hardly visit a bank or financial related

company. They went to a bank once to open an account, then they use only banking on

mobile phone as the major tool. However, to not every bank offers a service to invest

in mutual fund from the phone, but it requires lots of document and take approximately

a week to open mutual fund account. A few respondents mentioned that to buy mutual

fund is waste of time.

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3) Lack of knowledge about saving related product

“I heard that, if you put the money into fixed account, you cannot withdraw the

money until it reach the maturity that why I chose to put all of my money in saving

account” Mr.Vasin, 25.

The response above is an example of misunderstanding about saving related

product. The fact is that you can withdraw the money you deposit with a bank at any

times, but if you withdraw it early you will get lower interest rate. This just an example

of misunderstanding collected from the in-depth interview session. The

misunderstanding shows the bad habits of Thai first-jobbers that they are unaware of

the product description.

4) Lack of financial knowledge

“I hate mathematic and everything that have number. Moreover, when it comes

to finance I think they are speaking alien language” Ms.Pinhathai, 25.

The response above is just an example of respondent who does not have any

interest in financial area. Finance and saving for retirement are like bread and butter.

The better knowledge in finance the better plan you can design. 8 out of 25 respondents

mentioned that they do not know any thing about mathematic and finance is worse.

5) Underestimate the time after retirement

When respondents were asked to picture themselves at the age above 60 years

old. Most of the respondents picture themselves live in a luxury life and worry free

about any things. They only mentioned about family, friend and travel. However, after

they were asked to think about how much money they need in order to have a life they

want. They cannot answer the question and come up with the chance to get promotion

or be an entrepreneur with a lot more income.

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CHAPTER 5

CONCLUSIONS AND RECOMMENDATIONS

5.1 Conclusion

According to the findings, the problem that lead Thai first-jobbers to lack of

interest in saving for retirement is coming from the fundamental knowledge of

financing and lack of correct support from the government.

As mentioned in the theory of planned behavior that the 3 majors key variables

which are 1) personal factor or attitude, 2) social factor or subjective norm and 3)

control factor or perceived behavioral control combined will shape a person intention

and behavior. The behavior that Thai first-jobbers should do is saving for retirement.

However, as the result from findings show that attitude of Thai first-jobbers toward for

saving for retirement is negative, which mean that the Thai first-jobbers is lost on the

intention to save for retirement. Moreover, social factor also plays important role in this

part, due to friend and family habits that can shape up a person behavior. The result of

the in-depth interview presents that the closest group which is family still support the

Thai first-jobber. This can shape up the behavior of Thai first-jobbers to think that

saving for retirement is stills far away. In addition, the government which is one of the

best channels that can shape up the Thai first-jobbers behavior to start saving for

retirement stills aiming in the wrong direction. Bad attitude towards saving for

retirement and lack of support from the surrounding caused Thai first-jobbers to

unaware of saving for retirement and do not have confident to start saving.

5.2 Recommendation

According to the findings, to change behaviour of Thai first-jobbers to start

saving for retirement, first the attitude toward saving for retirement must be positive.

Thai first-jobbers should learn more about basic finance, in order to understand the

consequence of well plan for retirement and no plan for retirement. The marketer should

adopt knowledge-base marketing. For example, open a short seminar course about

saving for retirement at university or graphic ads explain how much money you should

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have before retiring. Moreover, advertise campaign should enhance a fear to the public,

that saving for retirement is a must and should start early, because from the in-depth

interview after mentioned about how important saving for retirement is the respondents

start to pay attention more and asked about the easy way to start.

The social factor is another important aspect. In this case government should

support the saving for retirement related product by launching a campaign that promote

saving. For example, England once have a campaign to assist lower income worker to

start saving more by giving a 50 percent bonus to person save a money for more than

four years with the maximum bonus of 1,200 Pound.

Lastly, education is the key to change the way people think and act. The best

way to shape a future of Thai first-jobber is to educate them early. In America, there is

a basic financial class in high school. Therefore, it is the best for government to take

action by encourage high school to open a basis financial course.

5.3 Future Research

This research can be further studied in order to reflect more outcome and

interesting findings. The recommendations of future research are as follows:

1) In- depth interview with the first-jobbers who already start saving for retirement

early in order to capture the element that can push this group of people to start

saving

2) Examine which basic finance course can persuade a person to start saving for

money.

3) Quantitative study to gain more insight in term of number

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REFERENCES

Ajzen, I (2002). "Perceived Behavioral Control, Self‐Efficacy, Locus of Control, and

the Theory of Planned Behavior" Journal of Applied Social Psychology. 32:

665–683.

BAY. (2018). Plan for retirement. How much saving is enough? Retrieved December

6, 2018 from Bank of Ayudhya Public Company Limited:

https://www.krungsri.com/bank/th/plearn-plearn/saving-plan-for-your-

retirement.html

Krungsri. (2018). 62% of Thais have an error on retirement plan. Retrieved December

6, 2018 from Bank of Ayudhya Public Company Limited:

https://www.krungsri.com/bank/th/planyourmoney/must-stories/life-

plan/retirement-failure-solution.html

Maslow, A. H. (1987). Motivation and personality (3rd ed.). Delhi, India: Pearson

Education.

Nation News. (July 25, 2014). Thais slow in saving for their retirement. Accessed

December 7, 2018, from Nation Multimedia,

http://www.nationmultimedia.com/national/Thais-slow-in-saving-for-their-

retirement-30239411.html

Society of Actuaries (2018), “Retirement Planning”, Spotlight on Retirement: Thailand,

pp. 27

Thai FCPC. (2018). Saving. Retrieved December 6, 2018 from Financial Consumer

Protection Center: https://www.1213.or.th/th/moneymgt/save/Pages/save.aspx

Thairath. (2018, March 5). How much money? Then retire comfortably. Retrieved

December 6, 2018 from Thairath: https://www.thairath.co.th/content/1218988

TMB (2018, July 23). TMP opens the overview of Thais financial behavior. Retrieved

December 6, 2018 from TMB Bank Public Company Limited:

https://www.tmbbank.com/en/newsroom/news/analytics/view/Analytic-

Financial-behavior.html

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APPENDICES

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APPENDIX A

FIRST PHASE IN-DEPTH INTERVIEW QUESTION

1) Product Issuer

- Briefly telling about your career.

- What is current situation of saving related product market?

- If scoped down to retirement related product. Is the market is still growing or

which direction the market goes?

- Is there any regulations or condition on product specially tailor for retirement

group?

- What is the different between saving product that suitable for retirement and

general one?

- What is the key feature that you think every saving product that target

retirement group must have?

- In the perspective of issuer what is the key benefit of purchasing saving

product?

- Is there any recommended saving product listed on the market now?

2) Sales Representative

- Briefly telling about your career.

- What is current situation of saving related product market?

- If scoped down to retirement related product. Is the market is still growing or

which direction the market goes?

- In your company is there any product tailor for retirement and target first-

jobbers? If not, what is main target of your company?

- Is there any regulations or condition on product specially tailor for retirement

group?

- What is the different between saving product that suitable for retirement and

general one?

- What is the key feature that you think every saving product that target

retirement group must have?

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- In the perspective of sales representative what is the key benefit of purchasing

saving product?

- Is there any recommended saving product listed on the market now?

- Have you ever sold any saving product to first-jobbers? Is there any obstacles

or variable that you faced during that time?

- Compare first-jobbers with other group of consumer, which group of consumer

do you think is the easiest group to persuade to purchase saving related

product?

3) Target audience: First-Jobbers

- Briefly tell us about yourself

- What is your daily routine be like?

- How is you work, what are you doing now?

- How long have you been working in this company?

- Have you plan to change your job recently?

- How much do you get for your salary?

- How much is your monthly fixed cost?

- How much do you spend each month despite fixed cost?

- Do you have any debt or monthly installment?

- What is your top 3 priority of your spending each month?

- Do you save money? If yes, how?

- Do you invest in any form of assets?

- Have you ever consulted any friends about saving? How do they react to your

question?

- Do you get any financial support from your family?

- What is it mean to you by the term retirement?

- Do you know how much money you should have before you retire?

- Have you ever heard about RMF or any form of saving specialize for

retirement?

- If you are going to save 3,000 baht per month how much salary do you need

to make sure that you have enough to save that much amount?

- If I say that to live comfortably you need to have at least 6,000,000 baht of

saving. Have you ever known that and what do you think about it?

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- Do you think that current advertisement is attractive enough to persuade you

to purchase saving related product?

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APPENDIX B

SECOND PHASE IN-DEPTH INTERVIEW QUESTION

- Briefly tell us about yourself

- What is your daily routine be like?

- How is you work, what are you doing now?

- How long have you been working in this company?

- Have you plan to change your job recently?

- What do you think about future career path?

- How much do you get for your salary?

- How much is your monthly fixed cost?

- How much do you spend each month despite fixed cost?

- Do you have any debt or monthly installment?

- What is your top 3 priority of your spending each month?

- Do you save money? If yes, how?

- Do you invest in any form of assets?

- Have you ever consulted any friends about saving? How do they react to your

question?

- Do you get any financial support from your family?

- Have you ever take a financial course or a seminar related to financial area?

- Do you know about inflation and time value money?

- What is it mean to you by the term retirement?.

- What do you see yourself after retired from working life

- Do you know how much money you should have before you retire?

- Have you ever heard about RMF or any form of saving specialize for

retirement?

- If you are going to save 3,000 baht per month how much salary do you need

to make sure that you have enough to save that much amount?

- If I say that to live comfortably you need to have at least 6,000,000 baht of

saving. Have you ever known that and what do you think about it?

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- Do you think that current advertisement is attractive enough to persuade you

to purchase saving related product?

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APPENDIX C

LIST OF RESPONDENTS

No. Name Gender Age Occupation Education Salary

1 Mr.Chawalit Male 28 Digital marketing Master Degree 35,000

2 Mr.Wisarit Male 25 Marketing - automotive Bachelor Degree 28,000

3 Mr.Sarun Male 26 Interior Design Bachelor Degree 26,000

4 Mr.Aphiwat Male 25 Engineer - electronic Master Degree 25,000

5 Mr.Thanapon Male 27 Engineer - car Bachelor Degree 28,000

6 Ms.Thanissa Female 26 Product design Bachelor Degree 25,000

7 Ms.Chutimon Female 26 Executive secretary Bachelor Degree 22,500

8 Ms.Thitikul Female 29 Accounting Audit Master Degree 38,000

9 Ms.Areeya Female 30 Dentist Bachelor Degree 75,000

10 Ms.Prattana Female 26 Accountant Bachelor Degree 22,000

11 Mr.Thanabodi Male 29 Sales Executive Bachelor Degree 30,000

12 Mr.Krisakorn Male 28 Tech Startup Bachelor Degree 22,000

13 Mr.Vasin Male 25 Marketing Planner Bachelor Degree 23,000

14 Mr.Chote Male 25 IT Support Bachelor Degree 22,000

15 Ms.Jittisa Female 25 Data Analyst Bachelor Degree 28,000

16 Ms.Kasama Female 27 Human Resource Master Degree 30,000

17 Ms.Thanunya Female 29 Pharmacist Master Degree 45,000

18 Ms.Juthapon Female 24 Chef Bachelor Degree 22,000

19 Ms.Pinhathai Female 25 Flight Attendence Bachelor Degree 60,000

20 Ms.Pimchanok Female 24 Barista Bachelor Degree 21,000

21 Ms.Patnarin Female 23 Creative Bachelor Degree 21,000

22 Mr.Prachai Male 27 Product design Bachelor Degree 29,000

23 Mr.Raksit Male 28 Singer Bachelor Degree 38,000

24 Mr.Akaradit Male 28 Lawyer Master Degree 50,000

25 Mr.Surawut Male 26 Youtube blogger Bachelor Degree 45,000

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BIOGRAPHY

Name Mr. Wattikorn Vittayaamnuaykoon

Date of Birth July 22, 1989

Educational Attainment

2018 – 2019: Master’s Degree Program in

Marketing (MIM), Thammasat University

2009 – 2013: Bachelor’s Degree Business

Administration, Chulalongkorn University

Work Position Managing Director

Capital Link Asset Management Company

Limited

Work Experiences Managing Director, Capital Link Asset

Management Company Limited

Senior Credit Officer, Capital Link Credit Foncier

Limited

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