And that's why many Malaysians do not take savings & retirement planning seriously. That's also the reason why, most Malaysians do not have sufficient savings in their old age.

You do not use higher inflation figures only because it will show that none of your products will be able to overcome this inflation thus nobody will invest in them. So u downplay the actual inflation figures and use low figures. You are merely misleading your clients and that's the reason why I always tell people never trust financial planners. They will always downplay the real market conditions and try and sell you a product of their bank / financial institution in the end.
You cannot use long term inflation rates when the current inflation rate is much higher than that. And u are also wrong in saying that by assuming higher inflation figures, there will never be enough for retirement. That is again misleading. You can achieve a 10% ROI growth per annum with prudent investments. I am living proof of that and if I can achieve it so can anybody else.

In March 2007, my NAV was only RM196,000. My current NAV is approx. RM2.3mil. And im not someone who earns a super high salary. I just manage my risks, diversify investments and continuously review my investment portfolio every 3 months to ensure im getting maximum returns for every cent.