South Africa’s middle-aged earn more but here's the thing...

South Africa’s Generation X – roughly middle-aged – is hitting peak earnings, but the financial pressure is real.

Caught between caring for ageing parents and raising children, many in this cohort are finding their peak earning years anything but easy.

A study by JP Morgan Asset Management shows Gen X is the first generation worse-prepared for retirement than their parents.

A new report by NielsenIQ (NIQ) and World Data Lab, The X Factor: How Generation X is quietly driving trillions in consumer spending, shows that Gen X, born between 1965 and 1980, accounts for 21.4% of total spending in South Africa.

Globally, the generation represents 24% of consumer spending, worth $15.2 trillion (R270 trillion) this year, projected to reach $23 trillion (R405 trillion) by 2035.

“Gen X is a force to reckoned with in South Africa, despite the country’s relatively young population,” said Zak Haeri, NIQ’s MD for South Africa. Data from the South African Revenue Service shows Gen X are the country’s top earners.

“Although a much smaller segment of the population than the under-45s, Generation X is in its peak spending years and represents a major chunk of the spending on consumer-packaged goods and Tech & Durables,” said Haeri.

But earning more doesn’t mean spending freely. Around 64% of South African Gen Xers say they only have enough for essentials, compared with 46% globally.

Just 4% feel able to spend freely, versus 11% worldwide. Many are juggling the costs of funding children’s education while supporting ageing parents—a financial tightrope known as the “sandwich generation".

This has dampened discretionary spending, though 38% still indulge in premium products for themselves or their families—far fewer than Millennials (62%) or Gen Z (57%).

South Africa’s apartheid legacy still shapes who has access to skilled jobs, financial assets, and stable pensions.

The Bureau of Market Research notes: “Youth unemployment severely limits the ability of Gen Z and younger Millennials to participate in the economy, while education quality gaps mean that qualifications do not always guarantee income mobility.”

Gen Xers remain selective but curious. Some 29% like trying new products, especially if they offer practical value, align with personal values such as sustainability or health, or save time.

Brand loyalty is split: 36% stick to well-known names, 35% buy out of necessity, and just 9% actively support small brands.

Even tech adoption is cautious. Only 23% allow smart devices to reorder products, 32% accept AI recommendations, and 29% use AI to speed up daily tasks, citing privacy concerns.

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