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The Citizen
18 hours ago
- Business
- The Citizen
South Africans experiencing less financial stress, but still under pressure — survey
Overall, 63% of consumers spend more than 30% of after-tax income on debt repayments; the same ratio within the 45-54 age group is 74%. Although South Africans are experiencing notably less financial stress than they did for the past two years, with levels of financial stress returning to levels last experienced in 2022, money stress remains a significant issue for many people. According to the fourth annual DebtBusters Money-Stress Tracker which surveyed more than 27 000 respondents during May and June: 70% of respondents experienced money stress, down from 78% in 2023 and 75% in 2024. Although the extent of financial anxiety is declining, the impact on daily life remains substantial. Among respondents who said they still experience financial stress, 91% of them felt it affected their home life, 73% their work life and 73% their health. Women still bear a disproportionately higher burden of financial stress, with almost three out of four female respondents reporting feeling financially stressed. Women are around 10% more stressed about finances and 20% more stressed about work life, home life and health compared to men, although stress levels for both genders decreased by 5% to 15% across all facets of life since 2024. The shift is attributed to fewer national crises, such as less load shedding, reduced inflation and people starting to manage their finances better, allowing them to look beyond short-term survival. ALSO READ: Survey shows how economic distress erodes South Africans' savings culture Even small improvements decrease financial stress The Money-Stress Tracker worked with psychologist Andrea Kellerman, who notes that even a 5% drop in financial stress (from 75% to 70% in the past year) results in people sleeping and coping 'a bit better,' suggesting the profound impact even small improvements can have on resilience and perception. However, there are still key financial concerns. For people battling with financial stress, short-term concerns continue to dominate, with the top two running out of money before the end of the month and struggling to pay off monthly debt. The impact of interest rate increases, while still significant, subsided compared to 2023 and 2024. ALSO READ: Sarb: financial stability but financial distress in households and SMEs Different age groups have different levels of financial stress The survey shows that people from different groups have more or less financial stress: Age: Middle-aged (35 – 44 years) respondents had the most financial stress. Concerns about retirement increased for respondents older than 45 compared to 2024, indicating that this age group can now look beyond the short-term concerns which traditionally dominate. Middle-aged (35 – 44 years) respondents had the most financial stress. Concerns about retirement increased for respondents older than 45 compared to 2024, indicating that this age group can now look beyond the short-term concerns which traditionally dominate. Income: Lower-income groups are the most concerned about the impact of interest rate increases or unexpected expenses. While electricity costs are an elevated concern across all income groups compared to 2024, retirement worries are more pronounced in the upper-income brackets. People earning more than R20 000 a month remain in the group that experiences the most financial stress, often qualifying for and taking on more credit than their earning capacity allows. Lower-income groups are the most concerned about the impact of interest rate increases or unexpected expenses. While electricity costs are an elevated concern across all income groups compared to 2024, retirement worries are more pronounced in the upper-income brackets. People earning more than R20 000 a month remain in the group that experiences the most financial stress, often qualifying for and taking on more credit than their earning capacity allows. Region: Respondents from the Western Cape are the most financially concerned, surpassing Gauteng, which reported the most financial stress in 2024. The Western Cape is also where most people worry about unexpected expenses and retirement. Smaller provinces, such as the Northern Cape, Limpopo and Mpumalanga, saw significant increases in concerns about electricity costs and interest rates. The survey also investigated borrowing and debt repayment trends and found: 63% of respondents allocated 30% or more of their after-tax income to debt repayment, while 48% spend over 40% paying back what they borrowed, a level considered unsustainable. People older than 45 are under the most severe debt-repayment pressure, with 60% having unsustainable levels of debt. Respondents earning more than R20 000 a month also face considerable pressure to repay debt. This chart shows how much of their income the respondents spent on repaying debt: ALSO READ: How to minimise financial stress in your life What people are doing to combat financial stress However, the survey also shows that they are actively doing something about their financial stress: 37% of respondents reported actively cutting back on monthly spending, compared to 43% in 2022. This suggests savings fatigue has set in, Kellerman says. Seeking higher-paying or better jobs is a growing trend, with 35% of consumers exploring these options to make ends meet, compared to 26% in 2022. Younger consumers are more proactive about sticking to budgets and are almost four times more likely to seek better employment. The survey shows that 56% of the respondents are more intent on managing financial stress than people older than 35. Respondents elaborating on how they manage financial stress revealed a shift in coping mechanisms. In 2022 and 2023, people tended to seek better jobs or start a side hustle, while in 2024, debt counselling was the preferred way to relieve financial stress. Now there is a growing emphasis on entrepreneurial efforts, multiple income streams and financial independence, reflecting a move towards self-reliance and creating diverse sources of income. Benay Sager, executive head of DebtBusters, says that despite the slight reduction in overall stress, over 90% of South Africans with unsustainable debt do not proactively seek professional support such as debt counselling. 'This underscores the ongoing importance of stress-management programmes, financial education and awareness campaigns that address stigma and promote early intervention. It also highlights the need for innovative solutions to deal with financial stress, particularly those that help consumers stretch their money further.' ALSO READ: South Africans remarkably resilient despite economic challenges With less financial stress, people are sleeping and coping better Kellerman says the 2025 edition of the Money-Stress Tracker brought an encouraging insight that some might overlook at first glance: while overall financial stress levels dropped from 75% in 2024 to 70% in 2025, the impact of this change could be substantial. 'People are sleeping and coping a bit better despite elevated financial pressure. This 'disconnect' between the data and lived experience tells an important story about resilience, perception and the compounding effects of small improvements. 'It is well known that perception drives behaviour, and in 2025, that is more evident than ever. Although financial stress and pressure remain high for many, people report feeling more in control, more optimistic, as well as more willing to engage with support structures. 'However, for the first time in years, there was an overall sense of stability. The absence of large-scale disruptions such as load shedding or social unrest allowed people to regain emotional bandwidth and reframe their financial situation. With just a small decline in stress, people have begun to look beyond short-term survival.'
IOL News
21 hours ago
- Business
- IOL News
Money stress eases slightly in South Africa, but financial pressures remain
For people feeling financially stressed, short-term concerns continue to dominate, with the top two being running out of money before the end of the month and struggling to pay off monthly debt. South Africans are reporting lower levels of financial stress than in recent years, with stress levels returning to where they were in 2022. However, financial pressure remains a significant concern for many households. These findings come from the 2025 DebtBusters Money-Stress Tracker, which surveyed over 27,000 people in May and June, making it one of the largest online surveys examining the impact of money stress on South Africans' lives.
The Citizen
3 days ago
- Business
- The Citizen
Survey shows how economic distress erodes South Africans' savings culture
Consumers find it difficult to stick to a savings culture while the economy causes so much financial distress. Concerning insights from the latest Debt Rescue consumer savings survey highlight a severe disconnect between South Africans' desire to save and their inability to. This is in no small part due to South Africa's struggling economy and its impact on consumers, painting a grim picture of a nation living from month to month and on the brink of financial ruin. Neil Roets, CEO of Debt Rescue, says with the majority of consumers now barely even able to live from pay cheque to pay cheque and many relying on freelance or seasonal work, savings are becoming a luxury most South Africans can no longer afford. He emphasises that they need urgent, practical financial support to help households build financial resilience in an increasingly unaffordable economic climate. 'At least two-thirds of our respondents say that despite prioritising saving every month, they are finding it close to impossible to do so now, due to financial hardship and challenges resulting from the country's economic downturn.' ALSO READ: Ordinary South Africans will feel impact of US tariffs Survey shows consumers are trying to continue savings culture Key insights from the survey, which coincides with National Savings Month in July, show that South Africans are desperately trying to secure their future finances and shield their families from even greater economic duress, but are failing miserably due to immediate basic needs barely being met. A total of 48% of respondents report that they cannot cover basic essentials like food, energy, housing and healthcare, while another 41% say they only just manage their essential day-to-day living costs. Roets points out that there is clearly no lack of will on the part of consumers. 'While it is encouraging that 87% of respondents are actively trying to improve their saving habits, the resolve to save is simply not enough in the face of serious financial strain.' He says the unsustainably high cost of living is the primary barrier, with nearly half of those polled (47%) citing the high cost of living as their main barrier to saving, while 27% attribute unexpected expenses such as medical bills as the primary reason they fail. ALSO READ: Latest petrol price increase puts SA consumers on backfoot again This is how savings culture is failing in SA Some of the stand-out insights from the survey are: 35% of respondents prioritise building an emergency fund as their most important savings goal, highlighting how many are conscious of the reality that they might be living one crisis away from financial collapse. Almost a third (27%) do not save any of their income, while 29% save less than 5%. Only 18% manage to save more than 10% of their income monthly. Saving behaviours are worsening: 26% of people polled say they save less now than they did a year ago, while 23% say they stopped saving altogether. Only 20% managed to increase their savings. ALSO READ: Are you a young professional? Here's how to avoid the debt trap Beware: hope is not a strategy – avoid online gambling to save your financial problems On the back of the financial travails that plague millions of South African households, a mammoth new social ill has reared its ugly head and is far bigger than most people realise, Roets says. Online gambling increased by 550% in only four years with no sign of a reprieve, reaching a turnover of R1.14-trillion in the 2023/24 year, or nearly 17% of GDP. The best available research shows that it is mainly low-income South Africans who gamble away an astonishing share of their monthly pay, out of sheer desperation, undoubtedly hoping for big winnings that will somehow transform their circumstances. 'Meanwhile, the national consumer debt crisis is deepening with the latest figures showing that the debt to disposable income ratio for South African households has increased to a current level of around 75%, which is higher than the long-term average of 70% according to the South African Reserve Bank (Sarb). 'What all of this points to is that, while South Africans want to save, they simply do not have the means to do so and are relying more and more on credit, the state and/or turning to risky behaviours like gambling to manage everyday living costs. 'Consumers have already started to downgrade their lifestyle costs or cut them out completely, and this is very concerning in areas such as insurance, which places them in a vulnerable situation.'
IOL News
6 days ago
- Politics
- IOL News
Erosion of public trust in South Africa: Understanding the crisis and potential solutions
Experts say that the trust deficit in most government institutions, if not all, is a systematic issue. Pictured is South African president, Cyril Ramaphosa. Image: Supplied South African citizens have had enough of poor service delivery, high levels of crime, corruption, unresponsive government, and public institutions; they believe that they have been taken for granted for too long. As a result, public trust and confidence in government and public institutions are at their lowest at present, experts say. A recent survey by the Human Sciences Research Council (HSRC) revealed that South Africans' trust in government institutions has declined, with the police recording 22%, the lowest since 1998. There is a trust deficit in almost all government institutions, including the Parliament. Professor Purshottama Reddy, a Public Governance expert from the University of KwaZulu-Natal, stated that the tolerance levels of the citizenry have reached their limit with compounded issues of poor municipal service delivery, notably load shedding, water outages, inflated municipal billing, and urban decay. Reddy said the erosion of public trust in South Africa's government has gradually occurred over three decades, but has significantly accelerated in the past decade. 'It started with the ushering in of coalition governments at the local level from around 2016, 2017, the deliberations of the Zondo Commission, and finally leading up to the May 2024 elections. 'I think that developments in the past week (the explosive allegations by KZN Police Commissioner Lieutenant General Nhlanhla Mkhwanazi against police minister Senzo Mchunu, whom he accused of involvement in criminal syndicates) were the straw that broke the camel's back,' he said. He added that public institutions should be open and transparent in all their operations to restore confidence in the populace. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ 'All government activities should be open and transparent. The processes for appointments, suspensions, and dismissals, decision-making should be inclusive, and provision should be made for greater diversity in terms of different ethnic groups, as well as political representation, like what we are having now in the government of national unity. 'Some of the transgressors in some of the more widely publicised cases should be tried and sentenced. And that should send a strong message that the government is quite serious about curbing the scourge of corruption, reducing crime, and more importantly, enhancing service delivery, particularly concerning basic services,' Reddy said. He added that the anti-corruption agencies, oversight bodies, and the office of the public protector can be strengthened by appointing individuals strictly on merit. That is, people who have the qualifications, experience, expertise, and are independent. They should be firm, decisive, and undertake their tasks without favour or fear. But how did we get here? Reddy said that in 1994, when the ANC took over, the first decade of democracy went extremely well because many public functionaries, both politicians and officials, were very dedicated and sincere. He added that the first public functionaries had the requisite experience and qualifications, and they occupied senior positions, resulting in a very effective government. 'There was a high level of trust in the government then. The rot began in the second decade of democracy when some younger politicians and public servants came in. There were also a lot of political appointments to positions because of their standing in the political party, or some role they played in the struggle. The level of dedication and sincerity in terms of serving the communities was reduced somewhat. 'A lot of us did not have any problems with the people that were involved with the struggle being appointed, and so on. But, once these people were appointed, they brought in a whole lot of their friends and relatives, who did not have the qualifications, experience, which constituted a problem. And to a certain extent, this compromised service delivery,' Reddy said. He added that major governance challenges began in the second decade of democracy. These included poor service delivery, corruption, high crime levels, a lack of political and management will, a lack of inclusivity and diversity, unfulfilled promises of economic growth and job creation, and unethical leadership by public functionaries, as well as the absence of a merit-based system. 'We also saw a large number of coalitions being established at the local level, and that also created a great deal of instability in local government, because there should be guidelines governing these coalitions. 'The first of the major considerations should be service delivery. It shouldn't be a question of what is in it for the political party or the individual in terms of positions of mayor, deputy mayor, Speaker, or being on the executive. So, those are the root causes that have resulted in a decline in public trust in South Africa,' Reddy said. Dr Ngqapheli Mchunu, a senior researcher at the Human Sciences Research Council and one of the survey's authors, said while trust in the SAPS is low, at 22% in the year 2024/2025, it is not necessarily a matter of the police or SAPS trust being low in an isolative manner. It is a systemic issue because almost all the other institutions are low. Factors such as corruption, inefficiency, and a lack of sustainability contribute to the erosion of trust. Perceptions of corruption have a pull-down effect on almost all institutions because citizens will not necessarily apply or adopt a nuanced perspective to peel all the layers and get to the root problem. That process takes too long and it's too complicated, Mchunu said. 'Local government is low on trust, provincial government, national government, and even trust in political parties is very low. A trust deficit has happened in the country's democracy, and most institutions, if not all. 'We run the risk of having an illegitimate state of government in the sense that people need to endorse the state or state institutions. The minute that does not happen, people are not likely to comply or support state initiatives or projects, which essentially rely on citizens to embrace and buy into the idea of whatever it is the state is seeking to achieve,' Mchunu said. He added that an example would be the 2021/2022 national lockdown caused by Covid-19, where a lot of state guidelines were not necessarily followed, after the allegations of Personal Protective Equipment (PPE) corruption emerged. He said citizens want to see action. They want to see change; they want to see service delivery. And the minute that does not happen, while at the same time, they are reading about certain individuals getting bribed, tenders, corruption scandals in the millions and billions. That obviously ends up shaping the negative perceptions that citizens have, even though that may not have been a view that they held from the outset. Once we begin to see more positive news, like investigations or certain people being held accountable for their crimes. We will then see a rise in the popularity of SAPS, Mchunu said. Professor William Gumede from the Wits School of Governance said the government needs to take the public trust issue seriously and not respond in the same way they did in the past, where they would issue a statement and say that they are aware of the issues. 'Now, they must try to do better by bringing in the capacity of the Government of National Unity partners that are not ANC partners, bringing in the capacity outside government, where you have businesses, civil society, and professionals, and also come up with more pragmatic policies rather than ideological policies. They must come up with policies that are pro-economic growth and that can create employment,' Gumede said. 'Political will is at the heart of everything. This is the moment where the ANC must choose between itself as a party and the country. So far, the ANC has chosen the ANC; they have not chosen the country. Not choosing the ANC means not appointing ANC people who are corrupt or incompetent, just for the sake of the unity of the ANC,' Gumede said. Naledi Kuali, executive director of Defend Our Democracy, said failure to hold corrupt officials and dismantle criminal networks has resulted in a severe loss of public trust, an environment where the government is viewed as endorsing corruption. 'It is one thing for people to know corruption and state capture exist; it is another for service delivery to be so poor that people are so gravely and intimately affected by it in their everyday lives. It shows a contempt for the people and an unwillingness to be held to the promises made. Communities have stopped looking to leadership for assistance, which manifests in resentment and hopelessness towards our democracy,' Kuali said. She said accountability and transparency are effective in rebuilding public trust, adding that leadership needs not only to distance themselves from corruption but lead in a way that makes it unsustainable for the actor. Reuben Coetzer, spokesperson for Free SA, said South Africans are weary of watching inquiry after inquiry, only to see the implicated promoted, protected, or quietly forgotten. 'The credibility crisis is not just about one minister or one commission. It's about the erosion of democratic trust. We need prosecutions, resignations, recoveries of stolen funds, and above all, leadership that respects the intelligence of its people,' Coetzer said. According to the 2025 Edelman Trust Barometer South Africa report, business and NGOs remain the most trusted institutions in South Africa, with 68% and 63% respectively.
Belfast Telegraph
15-07-2025
- Sport
- Belfast Telegraph
Ulster set for historic first game in Netherlands as Challenge Cup fixtures confirmed
Richie Murphy's side will host the French giants at the Affidea Stadium on Friday December 5 before heading away to fellow United Rugby Championship side Cardiff in their second pool game a week later on December 12 at the Cardiff Arms Park. They will conclude their group campaign with another home game against French opposition as Stade Francais come to Belfast on Saturday January 17, but a week earlier comes arguably the most interesting game of their season. With the Cheetahs having to relocate from their home in Bloemfontein in order to compete in the Challenge Cup, it appears that Ulster will play their first game in Amsterdam on Saturday January 10 in their penultimate match. While the exact venue has not been confirmed, it has already been announced that the South Africans' home games will be based in the Dutch capital, meaning the province will head there for their second game of 2026. It is the first time Ulster have faced the South African team since February 2020, when the Cheetahs dropped out of the League in favour of the four Super Rugby franchises joining instead. The top four sides in the six-team pool – English side Exeter Chiefs are also in the group but do not face Ulster – qualify for the last-16 in April, with the team finishing fourth guaranteed an away tie in that round. Ulster's Challenge Cup fixtures Friday December 5, 8pm: Ulster v Racing 92; Affidea Stadium Friday December 12, 8pm: Cardiff v Ulster; Cardiff Arms Park Saturday January 10, 4:15pm: Toyota Cheetahs v Ulster; TBD, Amsterdam
