Young South Africans are not the reckless spenders they are often made out to be, according to Old Mutual. In a preview of its yearly Savings and Investment Monitor, the financial services group found that 91% of working Gen Z have set savings goals, from buying a car to simply growing their money. The problem is the gap between wanting to save and being able to. The survey covered employed, digitally connected South Africans aged 18 to 65 earning at least R8,000 a month, about a quarter of the country's adults.
Good intentions, thinner wallets
Only 46% now say they save regularly, down 11 points from a year ago. More than half have had to dip into their savings just to get by, and nearly a quarter have taken out loans to cover everyday costs. Financial stress has risen from 29% to 36%, and fewer young people are earning more than they did a year ago, slipping from 55% to 51%. Store cards and credit cards are being leaned on more heavily too, with store-card ownership climbing from 69% to 78%.
Carrying more than themselves
Part of the squeeze is family. More than four in ten young workers, 43%, are supporting both a child and an older relative at the same time. To make their money stretch, many save through their phones, keep cash on hand, or pool money through stokvels, which more than half of working Gen Z use. Old Mutual's John Manyike says the picture is less about impulse and more about pressure, with many prioritising today's needs over tomorrow's goals.
The wider picture is mixed. The Reserve Bank's latest figures showed the national saving rate ticking up to 14.9% of GDP early this year, though analysts expect it to slip as living costs bite. Some experts worry the habit is fraying: Frikkie van Loggerenberg of Ifsa Asset Managers argues South Africans lack a real savings culture, and has criticised the two-pot retirement system that lets people tap savings early, under which the taxman had approved R79.3bn in withdrawals by end-February.
Manyike's takeaway is that steady habits matter more than big milestones. Old Mutual releases the full study later this month. It will show whether good intentions can hold up against another year of rising prices.
