The Olympic bounce helped improve the quality of life and happiness of Britain's over-50s in 2012, although pressure on savings and poor employment prospects mean it may not last, according to a new report.

The latest quarterly report from Saga insurance shows their quality-of-life index was higher post-London 2012 than at the start of the year.

It measures quality of life for over-50s by surveying more than 10,000 people every quarter. It tracks their well being and includes official economic data.

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Dr Ros Altmann, director general of Saga, said the data showed there was positive change in 2012 for the over-50s.

"The past two quarters' findings indicate that things are generally improving," she said.

"However, as we enter 2013, it is important that policymakers act to prevent inflation squeezing older people's living standards."

The report shows that after a difficult start to the first half of 2012, there was a rise in happiness and well being during the summer of the Olympics.

However, according to the report, some of these improvements waned a little in the last quarter.

Savings income remains depressed and while employment of older people has increased, long-term unemployment remains a problem.

There has been an increase in employment of 15% (124,000) compared to last year for the over 65s.

There were 389,000 unemployed people aged 50-64 over the three months to August 2012 – 1.1% higher than the previous quarter and 6.7% up from a year ago.