Despite ongoing economic challenges, South Africans are demonstrating remarkable financial resilience and adaptability, driven by increased confidence in their ability to save and invest.
According to the latest Old Mutual Savings & Investment Monitor (OMSIM) 2024 survey, financial stress among working South Africans has significantly decreased.
The percentage dropped from 58% in 2020 to 37% in 2024. Moreover, 68% of employed South Africans are optimistic that their financial situation will improve in the next six months, up from 53% in 2020.
The survey also reveals a promising trend in access to financial advice. In 2024, 43% of working South Africans used a financial adviser, up from 39% in 2023, and 86% consulted their adviser in the past year.
“These key findings suggest increased access to financial advice is responsible for driving financial confidence. This optimism is crucial for promoting proactive financial behaviours and continued resilience,” said Vuyokazi Mabude, Head of Knowledge and Insights at Old Mutual.
South Africans are not just resilient but resourceful. “This shift in mindset is evident in their proactive approach to managing their finances. The survey revealed that respondents are increasingly finding innovative ways to improve their financial well-being, from engaging in side hustles to participating in the gig economy,” said Mabude.
The survey found that 57% of South Africans now juggle multiple income streams, up from 50% in 2023, showcasing a significant trend towards financial diversification.
Youth and Polyjobbing
Polyjobbing, the practice of having multiple jobs or income sources, is especially prevalent among young adults, with 73% of 18-29-year-olds engaged in this practice.
“Additionally, 54% of this 18-29-year-old group earn some income through social media, with about a quarter considering it a significant part of their overall income. This rise in income diversification by young working South Africans highlights economic adaptability and technological savviness,” said Mabude.
Entrepreneurship on the Rise
The OMSIM also revealed a growing entrepreneurial spirit among South Africans increasingly seeking financial security and growth opportunities outside of traditional employment.
OMSIM revealed that 47% of working South Africans own a business, up from 44% the previous year, while about a third of individuals (32%) are prioritising saving to start or finance a business, up from 27% in 2023.
The increase in business ownership and savings for entrepreneurial ventures highlights a significant shift towards self-reliance and confidence in the economy, which has improved to 36% from 27% in 2023, noted Mabude.
Other interesting findings include: