South Africa, 24 November 2025: South Africans’ financial confidence has reached its highest level in three years, rising from 47 in 2024 to 53 (out of 100) in 2025, according to the 2025 Sanlam Financial Confidence Index (FCI). The study reveals a nation that feels more in control of its finances, yet still struggles to turn confidence into consistent, long-term action.

After years of economic instability, South Africans appear to be recalibrating their relationship with money. Many are finding strength in structure: half of respondents say they could recover from a financial setback, up 11% from last year. Kele Boakgomo, CEO of Yugrow and behavioural scientist, notes that this reflects a nation in recovery, “We’re seeing a collective shift from survival mode to control. Financial stress has forced new habits – people are protecting what they have, prioritising stability and learning to manage uncertainty. The next step is helping them turn control into long-term capability.”

The survey had 1512 participants, aged 20 to 70, with personal income of at least R1000 per month. Lee Hancox, Head of Channel and Segment Marketing at SanlamConnect, says, “The growth in confidence may reflect a broader economic shift as the prime lending rate has dropped from a peak of 11.75% in 2023 to 10.50% in 2025, easing debt pressure and unlocking more disposable income. Real salaries are rising for the first time in seven years, and inflation is stabilising, giving households a renewed sense of control. However, gaps remain, and we’re still seeing a worrying lag in financial wellness.”

A confident nation - on paper

But while optimism is growing, behaviour hasn’t yet caught up.

After years of economic instability, South Africans appear to be recalibrating their relationship with money. However, Boakgomo says that there continues to be a confidence–action gap: “Confidence is only the first mile of change. People increasingly believe in their financial potential but still struggle to build habits and systems that turn optimism into outcomes. The next evolution will come from tools that make progress visible and habits automatic. When saving, tracking and paying down debt become part of daily life, confidence turns into capability.”

The wellbeing gap

Despite progress, emotional scars from years of volatility persist. Most South Africans still feel stressed about their daily finances (74%) and unhappy with their current financial situation (72%), while two-thirds feel uncomfortable talking about money.

Hancox says these feelings often stem from inherited money narratives, “Our family circumstances shape deep-seated beliefs about money – beliefs that linger long after our situations change. Many people still carry the fear or shame they grew up with. We must start having real, open conversations and normalise money talk as an act of empowerment. Awareness is the first step; advice is the next.”

Interest rates are coming down, and real salaries are increasing for the first time in seven years, but people continue to feel the impact of high interest rates and income loss from Covid-19. This may dampen confidence in people’s beliefs that they can build wealth in the future. Furthermore, global uncertainty is taking a toll. The spike in mental health issues suggests many South Africans are struggling with well-being.

The Gen Z effect

Gen Z leads across every measure – from Self-Determination (70) to Resilience (64) – driven by optimism, digital fluency and openness to financial learning. Millennials follow closely, while Gen X and Baby Boomers, often stretched by multigenerational care or retirement pressures, trail behind.

Hancox sees this as a generational turning point, “Gen Z’s optimism is an incredible opportunity. They’re open to learning, curious, and digitally empowered. Our job is to meet them with the consideration and creativity they deserve – tools, content and advice that fit their world. At Sanlam, we’ve seen this work through initiatives like Money MeetUps – matching advisers to everyday South Africans – and The F-Word Comedy Show, which used our shared language of laughter to get South Africans talking about the F-Word, our finances.” Gen Zs also seem to be hustling hard; their side hustles and multiple income streams may be making them feel more secure about their futures, but they need to invest their money and focus on growing wealth.

Turning emotion into evidence

Hancox concludes, “Sustainable progress lies in closing the space between what people know and what they live. Financial literacy must deepen in classrooms and campaigns; it needs to show up in people’s daily choices, their family conversations, and the tools they use. At Sanlam, our mission has always been to turn information into empowerment, and empowerment into generational prosperity. Confidence is what ignites change, but consistency is what cements it. When we design for both, we move closer to a future where financial confidence isn’t the exception, it’s our national norm.”

Notes:

2025 Sanlam Financial Confidence Index definitions:

Generations:

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