I'm trying to imagine a formal situation in which people would need to discuss undergarments. I agree that "undergarment" sounds formal and old-fashioned; perhaps it would be a good word to use if you needed to discuss this subject with the Queen of England, or perhaps a very elderly clerk in a very expensive shop. For everyone else, I think "underwear" is fine.
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khoffI'm trying to imagine a formal situation in which people would need to discuss undergarments.Amen, sister!
khoffI thought it was "tighty whities." And, of course, only if the underwear is white. And tight.