Study highlights mounting pressure on the ‘messy middle’
A new research study launched by Liberty in partnership with the UCT Liberty Institute of Strategic Marketing has revealed a significant shift in how mid-career South Africans experience financial life, with stability and resilience overtaking wealth creation as the dominant measure of success.
The findings, unpacked during a recent webinar facilitated by conversation strategist Nozipho Shabalala, point to a generation under mounting pressure, earning more than ever before, yet feeling increasingly financially insecure.
The study focuses on South Africans aged 35 to 55, described as the “messy middle”, navigating overlapping responsibilities across work, household, and long-term financial planning in a climate of economic uncertainty.
The research team said the study deliberately moved beyond traditional financial well-being frameworks, explaining that “we wanted to explore then a conversation that we felt like is often overlooked, as most financial well-being conversations focus on wealth creation and retirement than people’s day-to-day lived experiences.” They added that while financial goals remain intact, “the research has shown us that people have not abandoned their financial goals. Success is increasingly defined by stability, resilience and protecting what they’ve already built.”
Peak adulting and the sandwich generation
Lead researcher Paul Egan, Director, UCT Liberty Institute of Strategic Marketing, said the “messy middle” reflects a convergence of demographic and economic pressures that have intensified responsibility for this cohort. He explained that “arguably, it’s messier than ever before,” noting that longer life expectancy and delayed financial independence among younger generations have significantly increased pressure on mid-career earners.
Egan described this stage as “peak responsibility, peak adulting,” adding that individuals are increasingly responsible not only for their children but also for ageing parents, which has intensified the so-called sandwich generation effect. He said, “you’re responsible for your parents. You’re responsible for your children for longer. And that’s where this idea of a sandwich generation comes into play.”
He further highlighted the compounding effect of economic instability, noting that “we hear about job losses all the time, we hear about companies closing down, there’s a cost-of-living crisis,” all of which contribute to heightened financial pressure.
On technology-driven anxiety, Egan said the fear is not immediate displacement but future uncertainty, explaining that “it’s not necessarily AI taking my job today, but this constant media coverage that AI is going to take your job in a few years,” which is reshaping how workers perceive job security.
Real scarcity, not perception
John Taylor, Head of Benefit Consulting at Liberty Corporate Benefits, said financial strain in this cohort reflects genuine economic constraint rather than perception. He explained that “it is a real scarcity,” adding that this scarcity leads to “this fear of loss being greater than benefiting from any potential gains,” where “people fear losing more than they find joy in gaining.”
He said this behavioural shift is shortening financial time horizons, as individuals increasingly focus on immediate survival rather than long-term optimisation. Taylor added that there is “a real focus on building resilience, on ensuring that what I have is enough for now.”
Job hopping, side hustles, and early retirement access
Lusanda Raphulu, Partner and Head of Dispute Resolution at Bowmans, said employees are responding to financial pressure by adopting increasingly adaptive strategies across both internal and external labour markets. She explained that individuals typically begin internally by seeking promotion opportunities “so that they can earn more and try to meet their financial responsibilities.”
When this fails, she said mobility increases, noting that “we see things such as job hopping again to the surprise of the employer,” as workers seek higher income opportunities elsewhere.
She added that additional income streams are becoming increasingly common, explaining that “people are trying to earn more, and they’ll do what they need to do to earn more,” including side hustles and secondary work arrangements.
In more extreme cases, she said individuals are drawing on long-term savings, noting that employees “look at things such as their pensions and try to extract what they can to extract more cash,” reflecting the trade-offs being made between present liquidity and future security.
AI anxiety and workplace insecurity
Raphulu confirmed that Artificial Intelligence (AI) is contributing to rising workplace anxiety even among skilled professionals. She said that “people think they’ve done all the right things, they’ve gotten the education, they’ve gotten into the right workplace, they’re very skilled employees,” but despite this, “this talk about AI is creating anxiety and a feeling of uncertainty amongst skilled employees.”
She added that this uncertainty is reshaping workplace sentiment, stating that “it’s a real anxiety and in a group that should be feeling comfortable, they’re actually not comfortable, they’re actually uncomfortable and insecure.”
From accumulation to resilience
Taylor said traditional financial planning models based on linear life stages are breaking down. He noted that “those clean lines are no longer there,” as people move between roles and employers more frequently than in the past.
He added that retirement itself is shifting from a fixed event to a phased process, explaining that “retirement is no longer the set line in the sand,” and that individuals are increasingly “looking at ways that they can phase out of work.”
He argued that delaying retirement drawdown can materially improve financial sustainability, stating that “you don’t necessarily need to be saving significantly more in your 60s if you’re just able not to take the money,” which “makes a massive difference to your ability to sustain yourself.”
However, he cautioned against abrupt transitions, noting that “switching from 100 to zero is not healthy.”
Balance, flexibility and the human worker
Raphulu said employees are increasingly prioritising balance, flexibility, and wellbeing over pure career ambition. She explained that “there’s a lot at stake,” and that employees are more likely to remain in roles that allow them to meet financial obligations while also maintaining family responsibilities.
She added that flexibility has become a defining expectation, stating that “this generation really values stability and balance in the workplace,” and that they “value hybrid working and flexibility,” particularly the ability to manage caregiving responsibilities.
She emphasised the growing importance of time, noting that “there’s also time that can’t be gotten back.”
Role strain and shifting life stages
Egan described the lived experience of this cohort as “role strain,” driven by overlapping generational responsibilities and delayed life milestones. He said that “these are the tightrope years,” where individuals are balancing competing financial and personal demands simultaneously.
He noted that major life milestones are occurring later, adding that “marriage is happening later, that first home is happening later,” while financial instability is compounded by events such as divorce, which he said, “can have potentially a catastrophic effect on finances.”
Work, wellbeing and a shifting life model
Egan said the traditional life-stage model of “learn, earn, retire” no longer reflects reality for most South Africans. He explained that this model is “out the window,” as longer life expectancy and economic volatility reshape how people work and plan their futures.
He added that if people had more time, their priorities would shift, asking, “if you had 32 hours in your day instead of 24, how would you spend it?” noting that most people would likely approach life differently under such conditions.
Final call: guidance over judgement
Egan concluded that the most important shift required from employers and the financial services sector is narrative-based. He said that “we’re not living in an economy that’s booming,” and that individuals are navigating uncertainty, anxiety, and financial pressure simultaneously.
He emphasised that behaviours such as side hustles or early access to savings should be understood in context, stating that “people are not trying to save; it’s the reality of a resource-scarce environment and the pressures they’re under.”
He added that the industry must move away from judgement-based messaging, noting that “the worst thing is to tell people off for being behind; often it’s just life, it’s unexpected expenses, it’s economic shocks,” and instead recognise that peer learning is often more powerful than top-down messaging, as “sometimes an example from a colleague has more impact than any advertisement.”
Writer’s Thoughts
For financial advisers, the findings suggest that conversations centred solely on long-term wealth accumulation may no longer resonate with clients navigating immediate financial pressures. Instead, advice that prioritises resilience, flexibility and practical strategies to manage uncertainty is likely to become increasingly relevant. Do you agree? Please comment below, interact with us on X at @fanews_online or email me your thoughts.
