The agency picked up the business following an internal review conducted by Saga towards the end of last year.
Previously Saga had worked with a number of agencies on specific advertising projects, including McCann London and DCH.
VCCP will now develop a new campaign that aims to change perceptions of the Saga brand. The work will look to celebrate the freedom and possibilities that come with entering retirement.
Tim Pethick, the chief marketing officer of Acromas Holdings, which owns Saga, said: "Being older in Britain today is more about being healthy, wealthy and wise. Today's over 50s are savvy, have a certain attitude and joie de vivre that may not have applied to their parents to such an extent in previous generations."
Saga currently offers a range of services to over 50s, including holidays, insurance and financial services.
According to Nielsen, it spent around £32 million on marketing activity last year, with the majority of its spent dedicated to direct marketing and press activity.
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