South Africans take bold action toward financial freedom, latest OMSIM report shows

Despite South Africa’s tough economic backdrop, working citizens are showing a notable resurgence in financial confidence, both in sentiment and action, according to the 2025 Old Mutual Savings and Investment Monitor (OMSIM).

The data from OMSIM reveals a shift among middle-income earners who, despite persistent pressures, are actively reshaping their financial futures. From cutting debt to launching businesses, the findings reflect a nation moving from survival to strategy.

OMSIM, now in its 16th year, tracks the financial behaviours, priorities, and perceptions of employed South Africans earning upwards of R8 000 per month. This year’s report highlights adaptability, resilience, and a growing trend of financial agency.

According to Vuyokazi Mabude, head of knowledge and insights at Old Mutual, this year’s results mark 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.

The survey shows that 75% of respondents expect their financial situation to improve within six months, up from previous years and the highest level seen since 2020. This optimism is strongest among Gen Z, where 89% anticipate improvement.

Confidence in the broader economy is also recovering gradually, with 42% of respondents expressing positive sentiment, an upward trend from the pandemic years. Notably, 44% reported an increase in earnings over the past year, with income gains highest among youth (55%) and those in upper income brackets (57%).

Entrepreneurship continues to flourish as South Africans embrace side hustles and multiple income streams. The number of so-called “Poly-Jobbers” remains high at 57%, and among youth aged 18–29, that figure climbs to 75%. Nearly half (48%) now own or have a stake in 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.

People are increasingly monetising their skills and passions, initially from necessity, but now also to build long-term wealth, the OMSIM shows.

Debt remains a prominent concern, but progress is evident. The report shows that 57% of respondents have reduced debt over the past year, and 32% have taken steps to renegotiate repayment terms.

However, challenges persist. Mabude points to risky behaviour such as gambling, with 52% admitting to gambling and 40% doing so to cover expenses or pay off debt, it says.

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

South Africans continue to prioritise short-term savings, with 22% of household income allocated to savings. Stokvels remain a trusted vehicle, and fewer people are prematurely accessing retirement funds or investments.

“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.

However, long-term planning remains a weak point. Although 96% agree that retirement savings matter, only 28% have prioritised them in practice.

Despite hurdles, particularly cost-of-living pressures, OMSIM 2025 paints a hopeful picture. South Africans are no longer just enduring economic strain; they’re actively adapting to it. They’re creating opportunities, diversifying income, and looking ahead with measured optimism.

“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.

“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," says Mabude.

PERSONAL FINANCE