PEOPLE aged in their 40s are the least likely to have felt the benefits of the economic recovery in recent months, research suggests.

More than one third (34 per cent) of 40-somethings who took part in Halifax's "money attitudes" study reported feeling worse off now than they did in 2013, compared with the average across the age groups of 31 per cent.

People in their 40s, who are often juggling large expenses like the cost of raising a family and a mortgage, were also more likely to say they had run out of cash before payday in the last 12 months, at 53 per cent of people in this age group versus 43 per cent across the survey.

Those in the put-upon 40-something age group were also least likely to feel organised with their day-to-day finances, the least likely to have money set aside for a rainy day, and the least likely to pay their bills on time.

Overall, more than a fifth (22 per cent) of over 2,000 people surveyed have seen finances get better over the last 12 months, indicating a general improving picture compared with just 13 per cent who said this in 2013.

The share of people who admit to having run out of money at least once before the end of the month in the last year is also falling back, from 46 per cent in 2013 to 43 per cent in 2014.

Anthony Warrington, director of Halifax Current Accounts, said: "The improved economic outlook masks considerable variation in how different age groups are coping financially.

"While there has been an improvement in people's finances overall, those in their 40s are most likely to still be feeling the squeeze.

"People in their 40s face a wide range of demands on their finances, often juggling the cost of supporting children, with paying a mortgage, and trying to save for their own future.

"This research highlights that although the outlook looks brighter overall, the recovery is not evenly spread. As such, people need to maintain a close watch on their finances and manage their budgets carefully in order to reduce risks".