Employed South Africans working hard for financial freedom

Employed South Africans are working hard for their financial freedom according to a new survey that shows their resilience and renewed sense of optimism despite the persistent pressures of a challenging economic climate.

According to the 2025 Old Mutual Savings & Investment Monitor (OMSIM), many consumers are not only hopeful about the future but are also taking deliberate steps to improve their financial wellbeing.

The OMSIM is an annual study that tracks the financial attitudes, behaviours and priorities of working South Africans earning a minimum of R8 000 per month.

It serves as a barometer for the country’s financial health, capturing the lived experiences and evolving behaviours of the middle-income market. The 2025 findings tell a story of adaptation, resourcefulness and a steady shift from crisis management to more forward-looking financial behaviour.

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Finances still difficult for working South Africans despite progress

Vuyokazi Mabude, head of knowledge and insights at Old Mutual, says this year’s report is a reflection of a turning point.

“The results show that while life is still difficult for many people, 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 improvement in financial sentiment, Mabude points out. A remarkable 75% of respondents believe their personal financial situation will improve in the next six months, the highest recorded since the Covid-19 pandemic in 2020.

“This level of optimism is most pronounced among the Gen Z market, with 89% anticipating improvement in their finances. Confidence in South Africa’s economic direction is also improving, although consumers are still 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 improving as well

She says alongside improving sentiment, income growth is becoming more evident, where 44% of respondents reported earning more than they did a year ago, with income increases especially common among the youth (55%) and those in higher income brackets (57%).

It is clear from the survey that South Africans are not simply working one job anymore, with ‘poly-jobbing’ the new normal now. The report shows that side hustling and entrepreneurship have become deeply embedded in the financial lives of working South Africans.

The number of “poly-jobbers”, who earn income from multiple sources, remains high at 57%, rising to 75% among the youth between the ages of 18 and 29. In fact, Mabude says, the report shows that almost half of working South Africans (48%) now own or part-own a business.

“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 struggle with debt and gambling

However, with all the good news there is bound to be bad news. South Africans are struggling with debt and gambling. Debt continues to feature prominently in household financial management, but it is encouraging that 57% of respondents say they reduced their debt compared to a year ago. A growing number (32%) proactively engaged with creditors to renegotiate repayment terms.

However, there are areas of concern, Mabude says, pointing out that 52% of working South Africans reported that they gamble, with 40% admitting they do so in hope of covering expenses 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 also shows some lag when it comes to long-term savings. Although South Africans continue to show strong short-term saving habits with an average of 22% of household income being allocated to savings, retirement planning remains on the downside. While 96% agree that saving for retirement is important, only 28% made it a top priority.

“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 future

She says the report tells a story of progress, empowerment and possibility. “While challenges remain, mainly due to the cost of living, OMSIM 2025 shows a trajectory of optimism looking into the future.

“The report shows that South Africans are not passively waiting for change, but instead are actively creating it by embracing entrepreneurship, making smarter money decisions and seeking out alternative ways to achieve some level of financial 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.