View more on these topics

Many fear financial costs of retirement

Six in 10 people over the age of 45 believe their well-being and comfort in retirement will be bleak, according to research by Birmingham Midshires.

Its Saving Britain 2002 study shows people&#39s fears for their old age run beyond the size of their pension and savings to the lifestyle implications of their financial costs in retirement.

One in three people over 45 say their main concern is the standard and cost of healthcare. Almost one in five, 17 per cent, fear they will not be able to afford to retire at 65 and will have to carry on working in to their 70s.

Almost one in three, 30 per cent, said living in a retirement home was their biggest worry about life in the future. Midshires says retirement homes cost an average of £15,000 a year and nursing homes cost £20,000 a year, putting pressure on the money available to pensioners.

Only 8 per cent of those aged over 45 worry about paying off their mortgage, while one in four people aged 16-25 worry about getting on to the property ladder.

Head of savings and investment marketing Tim Hague says: “The savings gap 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. As a nation we need to seriously reconsider our attitudes to money. Saving is one habit you will welcome as you grow older.

Recommended

&#39Treat LTC sales the same as investment&#39

The sales and marketing of long term care products should be treated the same as investment business according to proposals launched by the ABI this week. In its consultation paper, Long Term Care Insurance Best Practice When Dealing With Individual Customers, the trade body sets out transitional measures for strengthening the way LTC products are […]

Ten years after

Troglodytes, antediluvians, dinosaurs, fossils. Perhaps that is taking it a little bit too far but the Pensions Protection Investments Accreditation Board&#39s chief executive John Cox believes the leadership of the insurance industry is 10 years behind the times. Good to see Cox proving his independence but perhaps a little harsh.What about those wise owls in […]

Norwich Union adding to MVR

Norwich Union has increased its market value reduction and extended it to pension products dating back to 1989 as a result of continued falling stockmarkets.The move comes as the insurer is being criticised for parent company CGNU using £2bn of future profits in its 2001 returns.The company argues that this strategy is better than having […]

Critical condition as Swiss Re ends cover

A move by Swiss Re to stop underwriting critical-illness policy guarantees could devastate the market for guaranteed CI products.Advisers are concerned that other reinsurers, notably GE Frankona, could follow, finishing off the CI market for products with terms of over five years without premium reviews.Swiss Re is to stop offering guarantees of more than five […]

European Opportunities: 'It’s nice when stock selection results in a macro tailwind'

Amid significant macro headwinds in August, Mark Page explains why his fund’s focus on stock selection has helped it outperform a falling market in August. BESbswyBESbswyBESbswyBESbswyBESbswyBESbswyBESbswyBESbswyBESbswyBESbswyBESbswyBESbswy

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment