Economic strain and job fears fuel workplace disengagement in South Africa A new Liberty and UCT study reveals that South Africans aged 35 to 55 are increasingly anxious about retirement, job security and rising living costs despite being in their highest earning years. The research shows financial resilience has overtaken wealth as the primary measure of success.
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South Africans in their prime earning years are feeling increasingly financially vulnerable despite higher salaries, as the cost of raising families, supporting relatives, and preparing for retirement collides with growing economic uncertainty.
That is one of the key findings of "The Messy Middle: A focus on mid-careers 35 to 55," a new study by Liberty and the University of Cape Town's Liberty Institute of Strategic Marketing, which found that many mid-career professionals are redefining what financial success looks like.
Based on interviews with 43 professionals aged between 35 and 55 from a range of industries, supported by secondary research and academic literature, the report explores the aspirations, anxieties, and financial realities facing one of South Africa's most economically significant demographics.
The research shows that around 16 million South Africans fall within the 35 to 55 age group, with roughly one-third belonging to upper-income and affluent segments.
Average annual earnings for those aged between 35 and 44 are approximately R378 937, rising to R472 327 for those aged 45 to 54.
Despite these higher earnings, many respondents said they felt financially stretched and emotionally exhausted as their incomes coincided with the most demanding period of their lives.
According to the report, many are navigating a phase of "peak responsibility", balancing established careers with home ownership, raising children, supporting extended family members, and managing increasing financial commitments.
"The research shows that mid-career South Africans are not failing to plan, they are managing risk under constraint. This is a generation trying to hold together careers, families, aspirations, and financial commitments in an environment where the margin for error feels increasingly small," says Paul Egan, director, UCT Liberty Institute of Strategic Marketing.
Researchers identified what they describe as "peak vulnerability", a stage of life where financial obligations are at their highest while the opportunity to recover from financial setbacks becomes increasingly limited as retirement approaches.
Although many respondents have established careers, the report points to growing financial fragility.
Nearly three-quarters of working South Africans aged between 30 and 49 say they sometimes or regularly live beyond their means, while around 86% financially support children. Education costs were consistently identified as one of the biggest financial burdens facing households.
Many respondents said they feared retrenchment, serious illness or an unexpected financial shock that could erase years of hard-earned progress. Several described feeling as though they were "one bad year away" from financial regression.
The study also highlights widespread concerns about job security, career stagnation and the impact of technological change.
Despite occupying established positions, many respondents said traditional job security no longer exists. Artificial intelligence and rapid technological advances have created additional anxiety, with some fearing their skills could become obsolete while simultaneously feeling too old to change careers or start over professionally.
Researchers also identified what they call "the plateau effect", where many mid-career professionals believe career advancement and salary growth have slowed, even as their financial obligations continue to increase.
The report suggests that traditional markers of financial success are giving way to a stronger focus on stability and resilience.
Rather than chasing luxury lifestyles or accumulating visible wealth, many respondents said their priority is protecting their families' quality of life and avoiding financial decline.
"What people increasingly want is not excess, but security. The aspiration today is to remain stable, maintain dignity and avoid slipping backwards," says John Taylor, head of benefit consulting, Liberty Corporate Benefits.
Many participants also reported a shift in priorities away from relentless career progression towards a broader understanding of wellbeing.
Physical and mental health are increasingly viewed as essential to maintaining financial security, with concerns about personal wellbeing often outweighing purely financial worries.
For many respondents, protecting their health has become critical to preserving their income, independence and overall quality of life in an increasingly uncertain environment.
The research found that many South Africans are also rethinking retirement.
Rather than viewing retirement as a fixed age or a complete end to working life, respondents increasingly see it as a gradual transition involving multiple income streams, flexible employment, consulting work, side businesses and phased career changes.
Many participants expressed concern about whether they would have saved enough for retirement, particularly after experiencing career interruptions, economic shocks or delayed financial milestones.
However, the report found that many no longer regard interrupted savings journeys as personal failure.
Instead, respondents emphasised flexibility, resilience and the ability to maintain financial stability through uncertain periods, with retirement increasingly defined by independence and dignity rather than reaching a predetermined savings target.
"For many South Africans, the goal is no longer simply retiring at a certain age but creating enough stability and optionality to navigate an uncertain future with confidence," says Taylor.
The report concludes that financial institutions will need to rethink traditional retirement planning models to better reflect the realities facing modern consumers.
Rather than focusing solely on fixed retirement outcomes, the researchers argue that financial products and advice should prioritise flexibility, income resilience and support across different stages of life.
"The role of financial institutions is evolving. Consumers increasingly expect financial institutions to act as guides and advocates that help reduce fragility, build resilience and support people through changing life stages, not simply promote idealised financial outcomes," says Taylor.
The report says this will require products, financial advice and communication strategies that acknowledge changing financial circumstances, support major life transitions and focus on long-term sustainability rather than perfection.
PERSONAL FINANCE