Britons reaching retirement may be pleased to read that the over-55s are more likely to be able to afford the cost of living than any other age group.

Such is the conclusion of research by financial provider Birmingham Midshires, which is publishing the results of a survey adding to its Life 2 campaign.

The firm found that one in ten older people are "totally satisfied" with their finances and are able to indulge in luxuries, compared to only one in 50 18 to 24-year-olds.

Meanwhile, almost one in five (19 per cent) over-55s can afford the social life they desire.

Jason Robinson, director of savings operations at the firm, comments: It's great news that many people can look forward to financial and social freedom in later life - but, of course, the more money they have coming in from pensions and savings the more enjoyable retirement will be."

Figures from Birmingham Midshires inform a recent survey conducted by Alliance Trust, which found that the elderly have the highest cost of living inflation, exceeding that of the headline rate.