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Many South Africans struggle to keep up with their debt repayments, forcing them to take additional jobs or side hustles to make ends meet.
The 2025 1Life Insurance Generational Wealth Survey revealed that more than half of their respondents have to supplement their income by taking on another job or starting a side hustle.
The survey, released on Wednesday, aims to identify South Africans’ financial situation and how they are building generational wealth.
Through answers provided by participants, the survey also identifies the challenges South Africans face in building generational wealth.
Hayley Parry, a money coach, said 44% of people rely on the extra income to cover their monthly expenses, while 3% use the money for leisure activities such as travel and entertainment.
She added that 65% of respondents cannot afford to generate wealth given their current financial situation.
“The financial well-being of South Africans remains under pressure, with as much as 56% of respondents indicating that they are merely surviving and 29% admitting they are struggling.
“The ones that are coping constitute only about 15%, where 12.9% described their financial situation as comfortable and 2.4% described themselves as thriving.”
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She said while financial pressures persist, they have seen an increase in the recognition of generational wealth, particularly in property, savings, and insurance.
Most of their respondent defined generational wealth as money and assets such as property or land.
“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.”
Generational wealth is financial assets passed from one generation of a family to another. Those assets can include cash, stocks, bonds, and other investments, as well as real estate and family businesses.
Parry added that only 13% of respondents are financially better than 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 can now save money.
“For 34% of respondents, financial conditions remained unchanged.”
However, debt remains a significant 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.
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She added that the survey found that at least 75% of respondents said they manage to maintain their premium payments.
“As South Africa prepares for the upcoming national budget speech, it is critical for policymakers to address these financial struggles, the private sector to continue driving consumer financial education, and implement measures supporting debt relief, wealth creation, and economic resilience.
“The findings reinforce the urgent need for effective financial planning and education to help South Africans achieve financial security.”
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