Employed South Africans working hard for financial freedom

Employed South Africans are working arduous for his or her monetary freedom in accordance with a brand new survey that reveals their resilience and renewed sense of optimism regardless of the persistent pressures of a difficult financial local weather.

According to the 2025 Old Mutual Savings & Investment Monitor (OMSIM), many customers are usually not solely hopeful concerning the future however are additionally taking deliberate steps to enhance their monetary wellbeing.

The OMSIM is an annual research that tracks the monetary attitudes, behaviours and priorities of working South Africans incomes a minimal of R8 000 monthly.

It serves as a barometer for the nation’s monetary well being, capturing the lived experiences and evolving behaviours of the middle-income market. The 2025 findings inform a narrative of adaptation, resourcefulness and a gentle shift from disaster administration to extra forward-looking monetary behaviour.

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Finances nonetheless tough for working South Africans regardless of progress

Vuyokazi Mabude, head of information and insights at Old Mutual, says this yr’s report is a mirrored image of a turning level.

“The outcomes present that whereas life remains to be tough for many individuals, working South Africans are making tangible progress.

“There is a notable increase in income, confidence and an entrepreneurial spirit, particularly among the youth. People are taking control of their finances, seeking out additional income sources, managing their debt more intentionally and placing greater importance on saving,” she says.

One of the standout findings is the marked enchancment in monetary sentiment, Mabude factors out. A exceptional 75% of respondents imagine their private monetary scenario will enhance within the subsequent six months, the very best recorded because the Covid-19 pandemic in 2020.

“This degree of optimism is most pronounced among the many Gen Z market, with 89% anticipating enchancment of their funds. Confidence in South Africa’s financial course can also be enhancing, though customers are nonetheless cautious.

“The number of people who expressed confidence in the economy has grown to 42%, building on the slow but consistent recovery seen since 2023.”

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Income of working South Africans enhancing as effectively

She says alongside enhancing sentiment, earnings progress is changing into extra evident, the place 44% of respondents reported incomes greater than they did a yr in the past, with earnings will increase particularly frequent among the many youth (55%) and people in increased earnings brackets (57%).

It is obvious from the survey that South Africans are usually not merely working one job anymore, with ‘poly-jobbing’ the brand new regular now. The report reveals that aspect hustling and entrepreneurship have turn into deeply embedded within the monetary lives of working South Africans.

The variety of “poly-jobbers”, who earn earnings from a number of sources, stays excessive at 57%, rising to 75% among the many youth between the ages of 18 and 29. In truth, Mabude says, the report reveals that nearly half of working South Africans (48%) now personal or part-own a enterprise.

“This entrepreneurial spirit is not just a trend. It is proving to be a vital coping mechanism and a source of financial empowerment. People are using their skills and passions to diversify their income streams, often out of necessity, but increasingly also as a means to build wealth.”

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Working South Africans wrestle with debt and playing

However, with all the excellent news there may be sure to be dangerous information. South Africans are fighting debt and playing. Debt continues to characteristic prominently in family monetary administration, however it’s encouraging that 57% of respondents say they diminished their debt in comparison with a yr in the past. A rising quantity (32%) proactively engaged with collectors to renegotiate reimbursement phrases.

However, there are areas of concern, Mabude says, stating that 52% of working South Africans reported that they gamble, with 40% admitting they achieve this in hope of overlaying bills or repaying debt.

“This trend suggests that while some are making proactive choices, others remain vulnerable and are turning to risky behaviour to bridge financial gaps.”

The report additionally reveals some lag on the subject of long-term financial savings. Although South Africans proceed to indicate sturdy short-term saving habits with a median of twenty-two% of family earnings being allotted to financial savings, retirement planning stays on the draw back. While 96% agree that saving for retirement is necessary, solely 28% made it a high precedence.

“It is also encouraging to note that fewer people are prematurely accessing investments or retirement funds, while informal savings vehicles, such as stokvels remain popular and trusted,” Mabude says.

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Optimism for the long run

She says the report tells a narrative of progress, empowerment and risk. “While challenges stay, primarily on account of the price of dwelling, OMSIM 2025 reveals a trajectory of optimism wanting into the long run.

“The report reveals that South Africans are usually not passively ready for change, however as a substitute are actively creating it by embracing entrepreneurship, making smarter cash choices and in search of out other ways to attain some degree of economic freedom.

“Every year, OMSIM gives us deep insight into how people are coping and adapting when it comes to their finances. This year, more than ever, we see an encouraging collective step forward,” Mabude says.