Over two in five (43%) UK adults believe that their financial situation will improve in the next 12 months, SmartSave has revealed.

The 2,000-person survey by the Chetwood Financial company found that this compares to a third (33%) who do not think it will improve, while 24% remained unsure.

Of those who believe they will be in a better financial situation in 12 months’ time, a third (33%) said this would be a result of "confidence in their own financial management".

A further 29% stated that they expect their salary to increase over the next year, while the same number said they will make the most of savings opportunities.

Just under a quarter (24%) said they expect their circumstances to improve due to their confidence that the UK economy is improving, while a similar figure (23%) named falling inflation as a factor.

Founder and chief executive officer at Chetwood Financial, Andy Mielczarek, said: "The past three years have been particularly tough for savers, with soaring inflation, high interest and mortgage rates, and slow wage growth making long-term saving difficult. However, inflation has finally fallen back to target levels, offering a sign of relief for savers.

"Unsurprisingly then, there is some optimism towards the year ahead, and a notable, and positive, theme among our findings is respondents' confidence in their own financial planning abilities. Indeed, strong financial management and taking advantage of savings opportunities will be key for people looking to take back control of their money as we move away from the high inflationary period.

"More than ever, savers need to take the initiative. With inflation at a three-year low and interest rates still high, there is a prime opportunity for savers to secure the best long-term savings opportunities while they last."

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