Vuyokazi Mabude, Head of Knowledge & Insights at Old Mutual

Despite the persistent pressures of a challenging economic climate, employed South Africans are showing resilience and a renewed sense of optimism. Many are not only hopeful about the future but are also taking deliberate steps to improve their financial wellbeing.

These are the key insights from the 2025 Old Mutual Savings & Investment Monitor (OMSIM), an annual study that tracks the financial attitudes, behaviours, and priorities of working South Africans earning a minimum of R8 000 per month.

Now in its 16th year, OMSIM 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.

According to Vuyokazi Mabude, Head of Knowledge & Insights at Old Mutual, this year's report is a reflection of a turning point.

“The results show that while life is still difficult for many, working South Africans are making tangible progress. There is a notable rise in income, confidence, and an entrepreneurial spirit, particularly among the youth. People are taking control of their finances, seeking out additional income sources, managing debt more intentionally, and placing greater importance on saving,” she says.

A nation rebuilding financial confidence

One of the standout findings is the marked improvement in financial sentiment. 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, albeit cautiously. The number of people who expressed confidence in the economy has grown to 42%, building on the slow but consistent recovery seen since 2023.

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 youth (55%) and those in higher income brackets (57%).

Poly-jobbing is the new normal

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” those earning income from multiple sources remains high at 57%, rising to 75% among the youth aged 18–29. In fact, 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,” Mabude says, adding that people are leveraging their skills and passions to diversify income streams, often out of necessity, but increasingly also as a means to build wealth.

Debt and gambling remain a challenge

Debt continues to feature prominently in household financial management. Encouragingly, 57% of respondents say they have reduced their debt compared to a year ago. A growing number (32%) have proactively engaged with creditors to renegotiate repayment terms.

However, there are areas of concern, says Mabude, pointing out that 52% of working South Africans reported gambling, with 40% admitting they do so in hopes 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, Mabude cautions.

Some lag on the long-term savings front

The report shows that South Africans continue to show strong short-term saving habits with an average of 22% of household income being allocated to savings.

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

Despite this however, retirement planning remains on the down side. Although 96% agree that saving for retirement is important, only 28% have made it a top priority.

A story of progress, empowerment and possibility

While challenges remain, chiefly the cost of living, OMSIM 2025 shows a trajectory of optimism looking into the future. The report shows that the South African people 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’re seeing an encouraging collective step forward,” says Mabude.

“With the right tools, advice and support, we believe more South Africans can continue to build on this trajectory of hope and optimism, and move closer to achieving their financial goals,” Mabude concludes.