Why South Africans over 45 are spending half their income on repayments

The 2025 DebtBusters Money-Stress Tracker reveals that South Africans over the age of 45, earning more than R20 000 a month, are facing a growing debt crisis. These individuals are now among the most financially stressed in the country, with 48% spending nearly half of their take-home pay on debt repayments. However, it’s possible to regain control of your finances and secure a stable future with strategic action and a clear understanding of your financial position.

Data from the Sanlam Credit Solutions Credit Confidence Index, which analyses over 818,000 active credit users, supports this trend. The index shows that a significant 37% of Gen X users (44-58) spend over half their monthly income on debt repayments. 

With the cost of essentials like food, transport, and electricity continuing to climb, many people find their salaries are failing to meet their family’s basic needs. This relentless pressure leaves them feeling overwhelmed and turning to credit to survive. This debt burden has a profound impact on daily life, with the Money Stress Tracker revealing that 91% of stressed individuals feel it affects their home life, and 73% report an impact on work and health.

A key driver of this pressure is the changing nature of the credit people are using. We are seeing a shift towards unsecured, high-interest credit. The market for personal and one-month loans has exploded with new entrants. Sanlam’s data confirms this, showing that personal loans (56%) are the most common credit products held by Gen X.

This strain can create a cycle where each successive generation inherits financial responsibilities that prevent them from building their own wealth. Breaking this cycle requires a proactive and honest approach to managing debt.

The high-income paradox – earning more, stressing more

The over-45 cohort has been impacted by two major economic shocks that have derailed long-term financial plans. This generation has been through the 2008 financial crisis and the Covid-19 pandemic. These setbacks have pushed their financial timelines out significantly.

A home loan taken out at age 30, with the expectation of being paid off by 50, suddenly still has a significant balance. This is often because homeowners had to refinance loans for lower monthly payments or take payment holidays where interest still accumulated. The 2025 Sanlam index shows that 32% of its Gen X users currently have home loans, a major long-term liability heading into their pre-retirement years. 

A debt burden passed down through generations

The immediate danger of living in this high-debt zone is the ripple effect it has on the entire household structure. The burden of managing these households is now falling to the younger generation. If a 60-year-old who expected to be debt-free before retirement still has significant debt, it means certain household expenses become reliant on their children.

Taking the first step from overwhelmed to in control

The first step for those feeling trapped is to gain a clear understanding of their financial picture, especially when managing multiple credit agreements. Use a consolidated credit dashboard to see all liabilities in one place. This clarity allows for strategic decisions specifically tailored to those nearing retirement:

• Prioritise and strategise your repayments: The focus is often on paying off high-interest debt while building a credit profile for 30-year-olds. For those over 45, the strategy shifts. Your focus is now on paying off the higher balance. You want to pay that bond and vehicle off as quickly as possible because you don’t want to be sitting with those large assets in retirement. The fact that Gen X makes up 33% of all users engaging with Sanlam Credit Management Coaches shows that this age group is actively seeking this kind of guidance.
• Conduct a ‘life admin’ audit: I have been driving less due to a hybrid working model, yet I continue to pay high insurance premiums. It’s important to contact your insurer or broker to review and update your policy.  I found that many insurers offer more affordable options for individuals who drive less. You need to ensure your cover aligns with your lifestyle. This principle applies across the board for this age group – are you on the correct medical aid plan for your current health needs? Could you be paying lower bank or investment platform fees?
• Leverage your experience and have honest conversations: This is the time for frank financial conversations with your partner about the retirement plan and what is realistically achievable. If you have adult children, be transparent about your financial situation to manage expectations and avoid passing the burden on. Speaking to a financial adviser or credit coach can help you structure a plan to pay off debt while contributing to high-interest savings or investment accounts to make up for lost time.

Building financial resilience for an uncertain future

Taking control of your finances can start by opening a Tax-Free Savings account, where even small contributions can grow your money faster without the burden of tax. These small, consistent actions can build a meaningful savings pot in a year. That way, when the next crisis hits, you’ll have a buffer that allows you to use your savings instead of taking on more debt.

* Darko is the business head of Sanlam Credit Solutions.

PERSONAL FINANCE