Six in ten people over the age of 45 years old and those nearing retirement have painted a grim view of how they see their long-term financial well-being and comfort. These are the latest findings from 'Saving Britain 2002' - a consumer awareness campaign being run by savings and investment provider Birmingham Midshires.

At a time when reports show many people have insufficient money for their retirement, the findings reveal how peoples' worries for old age run well beyond the size of their pension or savings, to lifestyle issues and the financial costs of old age. The Birmingham Midshires report shows that for a typical over 45 year old, the main fears for the future are the cost and standard of healthcare, living in retirement homes and having to work into their seventies to secure a larger pension fund. The average cost of a residential home is now £15,000 per annum and the cost of a nursing home is £20,000 per annum (Figures from Help the Aged) demonstrating the financial costs many people face later in their lives.

The new findings emphasise the need for people to save money early in order to reduce the financial fears and healthcare burdens in their old age and support an issue, already recorded in the US, where many people are now forced to provide for their children, elderly relatives and themselves. Birmingham Midshires asked 1,000 people a series of questions about their concerns for retirement.

Key findings include:

Healthcare: One in three people (34%) over the age of 45 years old claims their main concern for life retirement is the standard and cost of healthcare. The findings emphasise the importance of the Government's NHS pledge to improve the quality of public health services in Britain. It also follows a recent report from the journal "Science" that an increasing average life expectancy and deteriorating health in old age will cause substantial problems for pensions, healthcare and social services in the UK.

Retirement homes: Almost one in three people over the age of 45 (30%) surveyed claimed living in a retirement home was their biggest worry about life in the future. Costs of living in a retirement home are an average of £15,000 per annum and £20,000 for a nursing home, and will rise as demand for space increases. The costs put increasing pressure on the money available to pensioners.

'Sandwich Generations': At a time when many people should be ensuring their own financial future, many Britons over 45 years old are still concerned about providing for their family. Concerns about supporting other family members begin at twenty and do not diminish until people reach 60 years old. The findings support the term 'sandwich generation', first recorded in the U.S, where many people need to provide for their children and their elderly relatives as well as themselves.

Working into my seventies: Following a report from the Pensions Policy Institute (see Footnote 1), it would appear that it is not just 25 year olds who face working into their seventies before retirement. Almost one in five people (17%) over the age of 45 now fear they will not be able to retire at 65 years old in order to generate sufficient money for their old age. The findings follow calls from AXA, the leading insurer, for the Government to raise the age of retirement to 70 years old to relieve pressure on the state and individuals in retirement.

Paying off the mortgage: Only 8 per cent of people over 45 years old worry about paying off their mortgage, while in complete contrast, one in four people aged 16-25 worries about getting onto the property ladder following recent house price rises.

Tim Hague, Head of Savings & Investment Marketing at Birmingham Midshires said; "The savings gap in the UK currently stands at £27billion. This is a huge burden for a generation to carry and only really covers ensuring a comfortable retirement. There is still the issue of paying for long-term care, which is often required as we get older. As a nation we need to seriously re-consider our attitudes to money. The message is clear: saving is one habit you will welcome as you grow older. Listen and learn from your elders. Enjoy life, but take time to make adequate plans to lessen the burden on your family's finances in the future."