Financial health of working South Africans improves for third consecutive year, data shows

Working South Africans are showing greater control over their day-to-day finances than a year ago, but confidence in achieving long-term financial goals remains uneven.

That is the key finding of the 2025 NedFinHealth Monitor, Nedbank’s third annual study tracking the financial health of employed South Africans.

“The Save score has risen steadily over the past three years, supported by an increase in the number of respondents who report having at least three months’ worth of savings set aside,” says Frank Magwegwe, Nedbank executive for financial wellness and advisory.

“Encouragingly, the data also points to a gradual shift in mindset, with more respondents indicating a focus on retirement provision and longer-term wealth building," he says.

The Monitor measures financial health across four categories – Spend, Save, Borrow, and Plan – using eight indicators that capture both short-term money management and longer-term readiness. These are mapped using an index score out of 100, with higher scores reflecting stronger overall financial health.

The latest results show that overall financial health has improved for the third consecutive year, rising to 56.4 in 2025 from 54.8 in 2024 and 53.1 in 2023. The improvement reflects stronger performance across several indicators, including spending discipline, debt management, and bill payments. The gains come against a more supportive economic backdrop, with inflation remaining within the Reserve Bank’s target range and five consecutive interest rate cuts easing pressure on indebted households.

The Spend category shows notable progress, with nearly half of respondents now spending less than they earn, compared to fewer than four in ten in 2023. The Spend score rose to 55.9 in 2025, up from 52.8 in 2024. The Borrow category also strengthened, climbing to 58.5 in 2025 from 56.3 in 2024, as lower interest rates made debt repayments more manageable. Savings behaviour has continued to recover from a weak base, improving to 54.3 in 2025.

However, indicators linked to longer-term financial planning and confidence in meeting future goals remained flat, with some edging lower.

“The 2025 findings show that many working South Africans are starting to feel some relief in their everyday finances. However, the results also show that feeling more in control today does not automatically translate to confidence about the future," Magwegwe says.

According to the results, the Planning category continues to show the least improvement, with the score largely unchanged at 54.6 in 2025. The proportion of respondents reporting no confidence at all in achieving their long-term financial goals also increased slightly.

“There is a clear gap between coping and planning. Many people are doing the right things to manage their money month to month, but uncertainty about the future, limited financial knowledge, and concerns about risks such as fraud are holding them back from planning with confidence," says Magwegwe.

The data highlights differences across demographic groups. Higher-income respondents earning more than R25 000 per month recorded Save scores well above the national average, while lower-income groups remained more vulnerable to financial shocks. Women tend to outperform men in day-to-day money management, while younger respondents, particularly those in Generation Z, show relatively strong spending and saving behaviours but lower confidence in long-term planning.

According to Magwegwe, these patterns underscore the importance of accessible financial guidance. “Improving financial health is not just about income or interest rates; it’s about building skills, habits, and confidence over time. When people understand their money better, they are more likely to plan and make informed decisions.

"This year’s NedFinHealth Monitor findings reinforce the clear need for continued collaboration across sectors and organisations to strengthen financial education, promote responsible borrowing and support long-term financial planning," he says.

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