Nearly half of South Africans have no emergency savings, while debt and gambling are increasingly preventing households from building financial security, according to the latest findings from the Old Mutual Savings & Investment Monitor (OMSIM).
The study found that although 84% of South Africans believe saving is important, many are unable to turn that intention into action because of mounting financial pressures. Instead, household income is increasingly being used to service debt, cover rising living costs, and, in some cases, fund gambling activities.
The findings paint a concerning picture of the country’s savings culture, particularly as consumers continue to grapple with high inflation, elevated interest rates, and stagnant income growth.
Almost Half of South Africans Have No Financial Buffer
According to the research, 46% of respondents have no emergency savings, leaving millions of households financially vulnerable if they lose their income or face an unexpected expense.
Among those who are saving, the amounts are often insufficient to provide long-term financial security. Many respondents indicated that they save only when money is left over after paying monthly expenses, rather than contributing to savings consistently.
Financial experts warn that without emergency savings, households are more likely to rely on expensive credit when unexpected costs arise.
Debt Is Consuming Income That Could Be Saved
The report found that debt remains one of the biggest obstacles to saving.
Many South Africans continue to spend a significant portion of their monthly income repaying home loans, vehicle finance, credit cards, personal loans, and retail credit.
As debt repayments increase, consumers have less disposable income available for investments, retirement savings, or emergency funds.
This creates a cycle where consumers borrow to manage rising living costs, reducing their ability to save and increasing their future financial vulnerability.
Gambling Is Emerging as a Serious Financial Threat
The research also identifies gambling as an increasingly significant threat to household finances.
According to the findings, 27% of respondents who gamble admitted borrowing money to continue gambling. At the same time, many reported cutting back on essential expenses, including groceries, transport, and utility payments, to fund betting activities.
The report notes that online gambling has become significantly more accessible through mobile betting platforms, allowing consumers to place bets at any time using their smartphones.
Rather than improving financial circumstances, repeated gambling losses often leave consumers in deeper debt and reduce their ability to build savings.
South Africans Want to Save, but Daily Expenses Take Priority
Despite recognising the importance of saving, respondents said everyday expenses continue to take priority.
Food prices, transport costs, electricity, school expenses, insurance premiums, and debt repayments consume most household income before any money can be set aside.
The report suggests that saving has become a luxury for many households rather than a routine financial habit.
Financial Literacy Alone Is Not Enough
The findings indicate that awareness is not the problem.
Most South Africans understand why saving matters, but financial behaviour is increasingly influenced by economic pressure rather than a lack of financial knowledge.
Researchers argue that improving household savings will require more than financial education. Addressing unemployment, income growth, household debt levels, and responsible gambling will also be critical to strengthening South Africa’s long-term financial resilience.
With nearly half of households lacking emergency savings and debt continuing to absorb disposable income, the report warns that many South Africans remain one unexpected expense away from financial distress.
