South Africans continue to face significant financial pressure, yet many are finding ways to adapt. Budget Insurance’s inaugural Financial Health Survey reveals that 37% of consumers say their financial wellbeing has improved over the past 12 months, even as most remain uncertain about what lies ahead.
Drawing insights from more than 2,700 South Africans across diverse demographics, the survey explores consumer confidence, saving habits, insurance behaviour and spending decisions, providing a snapshot of how households are navigating an increasingly challenging economic environment.
“The findings reflect both the resilience and the reality of South African consumers,” says Tando Ngibe, Senior Manager at Budget Insurance. “Many households are making intentional financial decisions to manage difficult circumstances, but confidence in the future remains low. This tells us that consumers are coping, but they are doing so without the financial buffers needed to feel secure.”
Consumers are adapting, but financial confidence remains low
While more than a third of respondents say their financial wellbeing has improved over the past year, 59% are either not at all confident or only slightly confident that their financial wellbeing will improve over the next 12 months. In addition, 72% do not believe they will have enough money to retire comfortably.
The findings suggest that while many consumers have adapted to ongoing economic pressures, uncertainty about the future continues to weigh heavily on household finances.
Against the backdrop of unemployment remaining above 32% and persistent cost-of-living pressures, financial wellbeing is increasingly influenced by income security and broader economic conditions, not simply personal budgeting.
Saving remains an aspiration, but affordability is the challenge
Consumers recognise the importance of saving, yet affordability remains one of the biggest obstacles. More than half (52%) of respondents say they cannot afford to actively save for the future.
The challenge extends across income groups. While 59% of respondents earning below R10,000 per month report being unable to save, almost half of lower-middle (48%) and upper-middle income earners (45%) say the same. In contrast, 57% of respondents earning R40,000 or more per month say they are actively saving.
Financial pressure is affecting wellbeing
The survey also highlights the personal impact of financial strain. Among respondents whose lives have been affected by debt, 40% say it has negatively impacted their mental health.
“When financial pressure begins affecting people’s wellbeing, confidence and ability to plan ahead, it becomes more than just a financial issue,” says Ngibe. “Consumers need practical knowledge and support to help them make informed decisions, particularly during periods of economic uncertainty.”
Households continue making difficult trade-offs
To manage rising living costs, many consumers continue to make difficult choices. Fifteen percent of respondents say they have reduced or skipped meals to stretch their budgets, while others report delaying healthcare or struggling to meet rent and loan repayments. Most respondents describe themselves as “just getting by”, particularly those in the lower-middle and middle-income brackets. Meanwhile, respondents in higher-income households were more likely to report an improvement in their financial wellbeing over the past year. Education costs also continue to place pressure on households regardless of income. Around 12% of respondents earning below R10,000 per month say they struggle to pay school fees, compared with approximately 13% of respondents in higher income brackets, suggesting this challenge extends well beyond lower-income families.
Consumers continue to prioritise protecting what matters
Despite ongoing financial pressure, insurance remains an important financial priority for many households. More than half (55%) of respondents say they continue to prioritise insurance, recognising the importance of protecting themselves and their families against unexpected events.
However, affordability is shaping consumer behaviour. Around 29% of respondents say they have cancelled or downgraded funeral cover, while 16% have done the same with portable possessions insurance and 14% with life or health insurance. These findings highlight the difficult balancing act many households face between managing immediate financial pressures and maintaining essential financial protection.
The survey also points to differing protection priorities across income groups. Lower- and middle-income consumers are more likely to prioritise funeral cover, while higher-income earners place similar importance on funeral and vehicle insurance.
“Financial resilience is not simply about having more money,” concludes Ngibe. “It’s about having the confidence to make informed financial decisions and understanding how to protect yourself when money is tight. As households continue navigating economic uncertainty, improving financial literacy and helping consumers make informed choices will be critical to strengthening South Africa’s long-term financial wellbeing.”
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