Not having enough money to live day-to-day on retirement is the main concern of 88 percent of Malaysians of working age, according to a survey.

According to HSBC's report, 'The Future of Retirement: A balancing act', 49 percent of them said debt repayment was preventing their preparation for a comfortable retirement.

"The global economic downturn has also impacted their retirement plans - 36 percent has stopped, or reduced their savings through cash deposits, annuities or investments; 32 percent were less able to save for retirement; and, 28 percent found themselves getting into debt," it said.   

The report findings were based on an online surveys of 1,000 people of working age (25 and above) and in retirement, conducted by Ipsos Mori in August and September 2014.

HSBC Malaysia's head of retail banking and wealth management, Lim Eng Seong, said the budgets were increasingly stretched.

"The smallest amount saved from now can reduce long-term effect of these challenging times, and make the likelihood of a comfortable retirement all the more real," he said at a media briefing on the report today.

Lim said 27 percent of pre-retirees were not currently, or had no intention to start saving for retirement.

"This is like relating the generation X and Y, where they have a mindset of having it ‘instant’, having to enjoy life today, and worry tomorrow.

"I suggest the younger generation see ahead on retirement and health matter, not just relying solely on Employees Provident Fund as it would last about five years if they have an average savings of RM50,000,” he said.

For a start, Lim said, those between 20-30 should save about 15 to 20 percent from their salary every month and gradually increases it as they earn more.

- Bernama