The 20-page Saga Quarterly Report found that long-term unemployment has hit the jobless over 50s hardest as 43 per cent have remained on the dole for more than a year, compared to 27 per cent of 18 to 24-year-olds.

This has “evaporated” their retirement savings, while their economic woes have been exacerbated as inflation on the consumer prices index edged up to 4 per cent and the retail prices index inflation rose to 5 per cent, according to latest data from the Office for National Statistics.

Ros Altmann, director-general of Saga, said: “People sometimes paint the older generation as ‘the lucky ones’ with fewer problems than others. But the majority are currently struggling and the worst affected are just short of retirement.

“Their pensions will not deliver the income they were expecting, their savings income has evaporated and more are losing their jobs. Once out of work, they find it hard to get back in. In short, their lives may never recover but their plight has so far been ignored by policy makers.”

The research, which aims to analyse Britain’s 21m over 50s, also found the quality of life for the over 50s is worsening as the rising cost of living means many are cutting back on life’s pleasures, such as eating out and holidays.

It found that 28 per cent said their standard of living has worsened since last year, while 23 per cent said they were less happy than the pervious year.

This has also had an effect on their well-being; 30 per cent noted a deterioration in their health compared to the previous year.

Charles Davis, an economist with the Centre for Economics and Business Research, said: “Nearly half the voters in the UK are over 50 and this research shows they are suffering. Unemployment among over 50s is higher than before the recession and inflation is hitting them hard, causing real incomes to decline.”

Dante Peters, director for London-based Magus Financial Management, said people need to save more by making investment over a long period of time. He said: “I am not surprised that many over 50s are in this situation. This is because many people do not understand the amount of money needed for later life.

“The problem is that when people do make an investment, they tend to panic if there is a bit of volatility. The rule with investment is that it should be over the long term so it can weather the knocks from volatility. It does not matter what asset class you pick – whether it is bonds, equity or property – you need to be in it for the long haul.”