Buy onlineWednesday, 26 February 2025 – The latest annual 1Life Insurance Generational Wealth Survey reveals that the majority of South Africans are struggling to accumulate wealth due to financial constraints, with many forced to take on additional jobs or side hustles to make ends meet.
The 2025 survey found that 55% of respondents had to supplement their income by taking on another job or starting a side hustle. Of these, 44% rely on this extra income to cover their monthly expenses, while only 3% are able to use it for leisure activities such as travel and entertainment. Alarmingly, 65% of respondents stated that, when considering their current financial situation, they cannot afford to generate wealth.
The financial well-being of South Africans remains under pressure, with as much as 56% of respondents indicated that they are merely surviving, and 29% admitted they are struggling. The ones that are coping constitute only about 15%, where 12.9% described their financial situation as comfortable and 2.4% describing themselves as thriving.
Encouragingly, awareness of generational wealth is growing, with 70% of respondents defining it as both money and assets such as property or land. Specifically, 78% associate generational wealth with property and land, while 74% associate it with cash and savings—an increase of 10% compared to the 2024 survey.
“The results of the 2025 survey reflect the reality that many South Africans face daily. While financial pressures persist, we are seeing an encouraging increase in the recognition of generational wealth, particularly in property, savings, and insurance,” says Hayley Parry, Money Coach and Facilitator at 1Life’s Truth About Money. “It is promising to note that half of the respondents acknowledge life insurance as a tool for wealth generation, which is a crucial step toward financial security.”
Despite a lower inflation rate in the past year, only 13% of respondents reported being in a better financial position compared to the previous year. However, 25% of respondents managed to pay more towards their debt, paving the way for long-term financial freedom, while 26% indicated they are now able to save money. For 34% of respondents, financial conditions remained unchanged.
Debt remains a major concern, with 45% of respondents allocating more than 30% of their take-home income to servicing their debt. Within this group, 19% spend more than half of their salary on debt repayments, leaving them with little room for wealth accumulation and savings.
“The findings reinforce the urgent need for effective financial planning and education to help South Africans achieve financial security,” Parry adds. “At 1Life Insurance, we are committed to empowering consumers with the knowledge and tools needed to make informed financial decisions that will benefit future generations.”
From an insurance standpoint, the survey found that among insured respondents, around 75% managed to maintain their premium payments, demonstrating a commitment to protecting their financial futures despite economic hardships.
“As South Africa prepares for the upcoming National Budget Speech, it is critical for policymakers to address these financial struggles and for the private sector to also continue driving consumer financial education, and implement measures that support debt relief, wealth creation, and financial resilience,” says Parry.
“By fostering better financial literacy and access to online courses through the free 1Life Truth About Money platform, 1Life Insurance remains dedicated to helping consumers break free from the cycle of debt and create lasting wealth for future generations,” concludes Parry.