A Sigh of Relief: South Africans’ Financial Confidence Hits a Three-Year High

For the first time in three long years, a sense of cautious optimism is replacing financial dread for many South Africans. According to the newly released 2025 Sanlam Financial Confidence Index, the nation’s collective financial confidence has climbed to 53 out of 100, a significant jump from 47 just a year ago.

This shift signals that consumers are finally beginning to crawl out of the defensive “survival mode” that has characterised their relationship with money since the pandemic and subsequent interest rate hikes.

From Surviving to Taking Control

The data reveals a nation recalibrating its financial compass. The most telling statistic is that half of all South Africans now believe they can recover from a financial setback, an 11% increase from 2024. This growing resilience is the bedrock of the improved confidence.

“We’re seeing a collective shift from survival mode to control,” explained behavioural scientist Kele Boakgomo. “Financial stress has forced new habits – people are protecting what they have, prioritising stability and learning to manage uncertainty.”

This newfound control is reflected in the details:

• A notable 63% feel on track to pay off debt, a massive 21% year-on-year increase.

• 68% dare to live within their means, a 10% jump.

• Perhaps most importantly, 58% believe they have the financial freedom to make life choices they enjoy, a staggering 38% increase.

The Economic Tailwinds

This rise in sentiment isn’t happening in a vacuum. It reflects tangible improvements in the economic environment. The prime lending rate has dropped from a painful peak of 11.75% in 2023 to the current 10.25%, easing the pressure on mortgages and vehicle finance. For the first time in seven years, real salaries have risen as inflation stabilises, putting more disposable income in household pockets.

The Lingering Scars and the Generation Gap

Despite the progress, the report cautions that past pains linger. A significant 74% of South Africans still feel stressed about their daily finances, and 72% remain unhappy with their current financial situation.

“Many people still carry the fear or shame they experienced growing up,” said Lee Hancox of SanlamConnect, highlighting the deep-seated emotional baggage around money.

The confidence is also not evenly distributed across generations. Generation Z is leading the charge, topping every measure from optimism to resilience. Their digital fluency and openness to financial learning are clear advantages. In contrast, Gen X and Baby Boomers are struggling more, often stretched thin by the dual pressures of multigenerational care and retirement planning.

The message from the data is clear: South Africans are feeling more steady on their feet, but the journey from financial control to genuine long-term wealth building is just beginning. The challenge now is to transform this fragile confidence into lasting capability.

{Source: businesstech.co.za}

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