What is the process and timeline for applying for a retirement visa in Thailand, and can I travel on a holiday visa if my application isn't processed before my arrival?

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I suggest you to apply for non-o from the Thai embassy in your country. It will be easier and come to extend for 1 year in Thailand. Or if you need help from a representative, I can recommend one.

Start by reading the Thailand Embassy website visasection.

And then search the group.

Biggest hurdle may be to get a Thai bankaccount.

if you enter visa-exempt, you can't apply for an in-country Non-Imm-O retirement visa, because you cannot open the Thai bank account which is needed for this process. You need to apply for the 90-days Non-Imm-O Retirement Visa in your home country before you wing your way here. On this visa, you can open a Thai bank account

Where are you located? I have just applied for non o through UK embassy, they typically take no longer than a week? You can get into thailand on visa exempt if you qualify although will find it very difficult to open a bank account without a long term visa

Apply for the visa in your home country now, so you can open a Thai bank account. Which you'll need for your 12 month extension.