SmartSave, a Chetwood Financial company, released new research this week which examines how individuals assess their finances.

Over two fifths (43 per cent) of UK adults believe that their financial situation will improve in the next 12 months, according to new research by SmartSave, a Chetwood Financial company.

The digital bank commissioned an online survey – carried out between 12 and 17 June 2024 – by independent market research agency Censuswide. The data sample of 2,006 UK adults is nationally representative, ensuring that the respondents are weighted by age, gender, region, employment status and political views.

Of those who said they thought they would be in a better financial position in a year’s time, when asked why they felt this way, the most common reason cited was confidence in their own financial management (33 per cent).

This was followed by 29 per cent stating that they expect their salary to increase over the next year, and the same number saying they will make the most of savings opportunities.

Just under a quarter said that they expect their circumstances to improve due to their confidence that the state of the UK economy is improving, while a similar figure named falling inflation as a factor, the firm added.

“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,” Andy Mielczarek, founder and CEO of Chetwood Financial said.  

“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,” he continued.

“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,” Mielczarek added.

SmartSave was created by Chetwood Financial, a digital bank which was granted a full UK banking licence in 2018 to provide online financial products for savers without gimmicks.