A worrying 40 percent of millenials in the country are spending beyond their means, data has shown.

The Finance Ministry recently revealed that more worryingly, 47 percent of Malaysian youths also have high credit card debts, which is one of the main reasons for bankruptcy cases.

A report in the Malay Mail quoted Finance Minister Tengku Zafrul Abdul Aziz saying that Bank Negara data has shown that 40 percent of those aged between 20 and 40 are spending more than they earn, thus resulting in high credit card debts.

To compound the matter, the data also found that Malaysians are not saving enough for their retirement, with 50 percent of Employees Provident Fund (EPF) having less than RM200,000 in their accounts, which is lower than the average of RM240,000 they should have in their basic savings when they turn 55.

That amount would run out within five years of one's retirement, the minister warned.

This is very worrying indeed, as previous report had said that 85,000 Malaysians below the age of 25 were declared bankrupt bwteeen 2015 and 2019.

The main culprits for this are the "five-series" loans - personal, education, car, home and credit card, a wealth management consultant had told Sinar Harian.

Source: Malay Mail, Sinar Harian
Photo source: Rojakdaily