A 'U-shaped' happiness curve means happiness steadily increases after age 50, according to new research.

A report presented at the Royal Economic Society's annual conference showed that many people experience a mid-life dip after their 20s, before starting to feel satisfied with life again after 50.

Scientists are unable to explain the report's findings but suggest that people tend to assume more wisdom and adapt to life's aspirations better as they get older.

People aged over 65 said they thought it was nicer to be 25, but insisted they feel happier now than they did at that age.

The happiness survey involved respondents from Britain, Switzerland and Germany.

The report by Bert Van Landeghem concluded: 'Both the 25-year-old and 65-year-old might agree that it is nicer to be 25 than to be 65. But the 65 year old might nevertheless be more satisfied, as he has learned to be satisfied with what he has.'

Psychologists also said that having money makes you happier, but only in cases where you have a lot more than your friends and neighbours, and that a person's social standing or status matters more.