Young South Africans want to save, but everyday survival is getting in the way

South Africa's working Generation Z, aged 18 to 29, is determined to build a better financial future, but rising living costs, increasing debt and everyday financial pressures are making it increasingly difficult to turn good intentions into lasting financial security.

These are some of the findings from the 2026 Old Mutual Savings & Investment Monitor (OMSIM), the full research data will be presented later in the month of July. This phase of the research focused on working adults aged 18 to 29, showing that they remain financially engaged even as economic pressures mount.

The research shows that young South Africans recognise the importance of savings. Ninety-one percent have set savings goals, including saving for a car (33%, up 5%) and growing their money (29%). Almost half (46%) strongly agree that they are saving regularly as part of their plans, though this important metric is down by 11% since 2025. Other findings show that building emergency funds is a top 5 financial priority amongst this cohort.

Their intent however is tempered by rising financial stress (from 29% to 36%) and slowing income growth in the latest study. Fewer young people report earning more than they did a year ago, declining from 55% in 2025 to 51% in 2026. South African Gen Z’s also shoulder financial responsibilities for their families, with 4 in 10 (43%) who belong to the Sandwich generation - financially responsible for both child and parent/older adult dependents. This tension is amplified amongst young people who note financially helping parents and family as a top 3 key financial priority, much higher than the overall market.

What is clear is that daily financial struggles are making it harder for them to reach their goals. More than half of working Gen Z respondents (56%) say they have had to tap into their savings just to get by - a significant 10% increase on last year. The erosion of savings highlights the growing struggle between long-term goals and immediate needs (between future intentions of young people and their current financial realities).

“Generation Z is often seen as financially impulsive, but our research reveals a more complex picture. Young South Africans understand why saving and planning matter. However, ongoing economic pressure is leading many to prioritise today's needs over tomorrow's goals,” says John Manyike, Group Head of Financial Education from Old Mutual.

The findings also show that working Gen Z uses a range of ways to save. The research shows that 3 in 10 Gen Zer’s (30%) save via mobile money, citing its simplicity, convenience and security as the key drivers. Informal savings vehicles used include unbanked cash savings (80%) and stokvels, which are prevalent among 53% of working Gen Zers.

The report highlights an increase in credit vehicle uptake, as well as a worrying shift in how credit is being used. Rather than using credit only for extra spending, more young people are now borrowing to cover every day needs. Nearly one in four working Gen Z respondents (22%) have taken out loans to cover daily expenses, and personal loan use has risen sharply over the past year (at 64%, up by 16% since 2025). Store card ownership has also increased significantly from 69% to 78%, and credit card usage has risen from 70% to 76%.

Debt Stress

Despite these challenges, the research also shows positive signs of financial responsibility. Over 80% of respondents have checked their credit score in the past year, and almost half have contacted creditors to arrange alternative repayment plans when under financial pressure. These findings highlight the importance of providing young South Africans with practical financial knowledge early in their careers.

“Good financial wellbeing comes from small, steady habits, not just big milestones,” says Manyike. “Building healthy habits, such as budgeting, maintaining emergency savings, understanding credit, and seeking help early when money is tight, can make a significant difference over time.”

Old Mutual believes that financial education should reach not only individuals but also families, teachers, employers, and policymakers, since building financial resilience requires a collective effort.

The Old Mutual Savings & Investment Monitor, a leading financial behavioural study of employed people, continues to provide valuable insights into the financial challenges facing the workforce. By tracking these changes, the research aims to foster more practical discussions on saving, debt management, and long-term financial well-being.

The 2026 OMSIM surveyed employed, digitally connected South Africans aged 18 to 65 with monthly incomes of R8,000 or more, representing about 25% of the country's adult population. This report focuses on working Gen Z adults aged 18 to 29 and forms part of Old Mutual's wider effort to support financial progress and help South Africans make informed financial choices at every stage of life.