UCT Liberty Institute study reveals R1 Trillion graduate spending power, but gender pay gap still lingers

South Africans aged 30 to 39 with tertiary qualifications now represent a staggering R1 trillion in spending power, according to new research from the UCT Liberty Institute of Strategic Marketing.

The findings, published in the 2025 edition of the First 100 Paychecks Report: An Investigation into South Africa’s New Professionals, offer a detailed look into the financial journeys of 700 graduates, tracking their progress from graduation to their 100th salary slip.

The report paints a compelling picture of how education, income, and financial behaviour shape South Africa’s emerging professional class. It confirms that higher education remains the strongest predictor of financial success, with graduates consistently outperforming their peers in income, employment, and asset ownership. However, it also lays bare the persistent gender pay gap and structural barriers that continue to undermine equity in the workplace.

Zandile Makhoba, lead specialist of research & Insights at Liberty, says: “With the First 100 Paychecks Report, we wanted to go beyond the statistics and truly understand the financial journeys of South Africa’s new professionals. This research confirms the transformative power of education when it comes to financial gain, but it also highlights the gaps that need to be addressed if we are to unlock the full potential of our graduates.”

The study draws on a robust mix of academic literature, national datasets, including NIDS, GHS, Stats SA, and DHET, as well as qualitative interviews with 700 graduates aged 30–39, alongside 60 students and recent graduates. Video interviews were also conducted to capture personal stories and lived experiences, adding depth to the data.

According to the report, graduates continue to dominate South Africa’s high-income bracket. The report shows that 90% of professionals earning above R75,000 per month hold a university degree or tertiary qualification. Even among those earning between R22,000 and R75,000, 60% have higher education credentials. Education also offers strong protection against unemployment: 39% of South Africans without matric are unemployed, compared to just 12% of university graduates.

More than 80% of graduates interviewed believe their tertiary education was a worthwhile investment, and 65% stated that their qualification directly contributed to their current job. The data also shows that 76% of graduates live in middle- or upper-class households, reinforcing the link between education and upward mobility.

The report also reveals a shift in how young professionals approach money, debt, and investment. Graduates in their 30s are showing signs of financial maturity, with 85% reporting no student debt. However, lower earners are more likely to carry study loans into their 30s. The Standard Bank Youth Barometer, released in July, supports this trend, noting that under-35s are more cautious with credit, holding fewer cards, making smaller purchases, and repaying balances more frequently.

This cohort is also diversifying its approach to wealth-building. Forty-five percent have insurance cover on household items, 16% hold offshore investments, and 8% own a newly purchased home. Share investment accounts are held by 40%, while 37% make personal pension contributions and 64% have employer-sponsored pensions. Vehicle ownership remains the most common major investment, with 78% owning a car and 60% owning a home or apartment.

“These findings suggest that young professionals are entering their peak earning years with a more balanced approach to financial security, blending traditional assets such as homes and vehicles with investments and pensions, while remaining disciplined about debt,” according to James Lappeman, associate professor and head of marketing studies at UCT.

However, the education system is struggling to keep pace with demand. While the number of learners achieving a bachelor's pass in matric has surged from 107,000 in 2008 to 337,000 in 2024, university enrolments have only grown by 2.6% between 2011 and 2019. This mismatch raises concerns about access and capacity in the higher education sector.

Gender dynamics are also shifting, the report reveals. It says women now make up 63% of all students enrolled in higher education institutions, outnumbering men across every field, including traditionally male-dominated disciplines like Science, Engineering, and Technology. Since 2013, women have achieved over 220,000 more bachelor's passes than men.

Yet despite these gains, the gender pay gap remains stark. Men report an average net monthly income of R53,500, compared to R30,000 for women. This disparity persists even among graduates with similar qualifications and experience, pointing to systemic issues in workplace equity and compensation.

The report underscores both the progress and the persistent challenges facing South Africa’s young professionals. While many are optimistic and financially empowered, they still require targeted support to build long-term resilience and overcome structural inequalities.

“As a financial services organisation, these insights allow us to delve deeper into relevant, tailored and hyper-personalised solutions to meet this important cohort in their reality,” says Makhoba.

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