PETALING JAYA: Your ringgit has shrunk. To make matters worse, the onset of the GST has given the RM1,500 (S$560) in your pockets effectively much less purchasing power.
So, what do you do? Start saving from the get-go.
It's not about the amount. It's about the attitude, say financial experts.
Personal financial management coach Yap Ming Hui said saving should be made a habit for financial freedom after retirement, adding that even a monthly saving of RM10 could make a difference.
"Be a saver, not a spender. With the right attitude, saving will come naturally when your income increases, as you get older. It's psychological," he added.
Yap said those who did not save would struggle even if they had an annual income of RM500,000.
"A corporate guy told me he did not have savings despite earning so much. Why? Because he is a spender.
"Spenders increase their expenditure when their income goes up," he said, recommending that workers save at least 19 per cent of their monthly salary in addition to what was remitted into the Employees Provident Fund (EPF).
Yap was commenting on the findings of two recent studies - the Randstad Workmonitor Q1 2015 and HSBC's Future of Retirement, A Balancing Act global surveys.
Randstad found that 76 per cent of Malaysian employees believed that they would have to work past the age of 60.
HSBC's Asia survey found that Malaysians' ability to save for retirement was impacted by debt.
Universiti Malaya's Social Security Research Centre director Prof Datuk Dr Norma Mansor said Malaysians should be more financially literate and capable.
"The fear of not having enough for retirement is a good thing because it encourages sound financial planning," she said.
However, Prof Norma, the former secretary-general of the National Economic Advisory Council, said decent wages were also crucial to encourage saving.
"Some graduates only earn RM1,000. How much can they save?"