It’s no secret that our country’s economy this year has been severe, to say the least. This has left a large majority of Malaysians with a not-so-ideal amount of savings for their futures.
Let’s see just how bad things have been in 2022.
In a report by RinggitPlus, they described Malaysians’ finances to be ‘on the brink of disaster‘, as 70% (7 out of 10) of people only managed to save less than RM500 a month. The data from the RinggitPlus Malaysian Financial Literacy Survey (RMFLS) also showed that 63% of Malaysians can only survive for up to 3 months with their savings.
On top of that, only 5% of Malaysians have managed to save more than RM1,500 a month, though this is a 15% drop from 2021 and a 20% drop from 2020.
Sadly, 55% of locals have been living paycheck to paycheck, by spending the exact amount or even more than their incomes every month.
Despite all of this, 71% of the respondents believe that they are in control of their cash flows, even though 43% of the 71% are spending exactly or more than their monthly income.
And considering the fact that we save to ensure a comfortable and convenient retirement, 82% believe that their EPF savings are not enough for the retirement. On top of that, 41% of Malaysians have yet to even start financially planning for their retirement.
Even with such a situation, 66% of people would still consider applying for more EPF withdrawals should the government allow it.
This is insanely concerning, especially considering how quickly the prices of necessities are rising and how little people are managing to save for their futures.
We genuinely hope that 2023 will be better for everyone.