Half of the respondents to a survey by the life insurer 1Life acknowledge that life insurance is a tool for wealth generation, which is a crucial step toward financial security.
The “1Life Insurance Generational Wealth Survey 2025” found that among insured respondents, around 75% managed to maintain their premium payments, demonstrating a commitment to protecting their financial futures despite economic hardships.
The 2025 annual survey reveals that the majority of South Africans are struggling to accumulate wealth due to financial constraints, with many forced to take on additional jobs or side hustles to make ends meet.
In addition, 55% of respondents supplement their income by taking on another job or starting a side hustle. Of these, 44% rely on this extra income to cover their monthly expenses, while only 3% use it for leisure activities such as travel and entertainment. Alarmingly, 65% of respondents stated that, when considering their current financial situation, they cannot afford to generate wealth.
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.
Encouragingly, awareness of generational wealth is growing, with 70% of respondents defining it as both money and assets such as property or land. Specifically, 78% associate generational wealth with property and land, while 74% associate it with cash and savings—an increase of 10% compared to the 2024 survey.
Debt
Despite a lower inflation rate in the past year, only 13% of respondents reported being in a better financial position compared to 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 are now able to save money. For 34% of respondents, financial conditions remained unchanged.
Debt remains a major 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.
Money coach and facilitator at 1Life’s Truth About Money Hayley Parry said, “The findings reinforce the urgent need for effective financial planning and education to help South Africans achieve financial security.”