The over 65s have the lowest real inflation rate of any age group because of the supermarket price war, according to research from Fidelity International.
The report from Fidelity shows the over 65s experience an inflation rate of 0.3 per cent, while millennials (under 30s) face an inflation rate of 0.9 per cent - the highest of any generational grouping.
This is because the over 65s spend a higher share of their income on groceries and non-alcoholic drinks, and therefore reap the rewards of the ongoing price war between the traditional supermarkets and the discounters.
Older generations are also less exposed to rising rents and the cost of education; under 30s spend 19 per cent of their income on rent.
Richard Parkin, head of retirement at Fidelity International, said: "Supermarket price wars are keeping the cost of living down for the over 65s who ring up a bigger portion of their income at the tills. The over 65s are seeing their spending power reducing at a slower rate than other age groups.
"However, their expenses are not immune to price hikes. And in retirement, an increase in prices could have a significant impact on people's standard of living."