South Africa’s youth are increasingly aware of their financial inheritance – and they are committed to changing the narrative for those who come after them, according to the second edition of 1Life Insurance’s Generational Debt Survey.
This year’s survey – aimed at gaining a deeper understanding of the financial attitudes, behaviours, and aspirations of local youth – underscores a vital shift in mindset: while an overwhelming 89% of respondents believe that building wealth is extremely important, only 6% currently hold retirement annuities, and many remain burdened by both personal and inherited debt.
Most respondents associate generational wealth with owning assets, property, and holding insurance products – a reflection of their hopes for financial stability and legacy.
“Young South Africans are becoming more intentional and informed about their financial futures,” says Hayley Parry, money coach and facilitator at 1Life’s Truth About Money. “They’re not only aware of the weight of generational debt, but are actively working to build wealth that changes the future of their families. It’s a commendable shift that needs to be nurtured.”
Key insights from the 2025 survey include:
- The debt stops here: 44% of respondents said they were not left with any generational debt and are determined not to pass any on – signalling a decisive shift towards financial accountability and future planning.
- But the threat of inherited debt still looms: 22% worry that the debt they’ve taken on during their lives may still be passed down, particularly as economic challenges and cost-of-living pressures mount.
- Generational wealth matters – but remains out of reach for many: While 89% of young South Africans believe building wealth is critically important, many are held back by inherited debt, stagnant incomes, and rising financial responsibilities.
- Assets, insurance, and property top the list of wealth goals: Respondents most strongly associate generational wealth with owning physical assets (24%), insurance products (20%), and property (17%) – a clear indication that tangible legacy-building is front of mind.
- Retirement planning is neglected: Alarmingly, only 6% of young South Africans have a retirement annuity, revealing a critical gap in long-term financial planning and wealth preservation.
- Income is stretched thin across survival and support: Income is primarily used to support family (24%), pay for basic living costs (20%), or saved (16%). Significant portions also go to essentials like school fees with little left for wealth creation or investment.
- Dependants limit upward mobility: 37% support one or two dependants – and 23% support more than two – highlighting the financial strain placed on young earners as they balance caregiving with career and personal goals.
- Student debt continues to stall progress: Of those with tertiary education, 25% are still paying off student loans. Among current undergraduates, 27% are relying on student loan funding (excluding NSFAS) creating a long financial runway before wealth-building can begin.
- Financial literacy is improving – but still inconsistent: Young South Africans are actively seeking knowledge through social media, schools, books, and podcasts. However, despite strong interest, many lack consistent access to quality financial education.
- Budgets are the foundation – but not foolproof:
While most respondents say they rely on budgets to stay on track, inconsistent income and unexpected costs mean that even the most well-intentioned plans often fall short.
- Credit knowledge is rising, but action lags behind: Most understand the difference between a good and bad credit score, yet many admit to having only average credit profiles. The desire to do better is there, but structural challenges remain.
- Unemployment and limited resources are top barriers to progress: 36% say they’re unable to break the cycle of generational debt due to unemployment. A further 20% cite constrained resources – and 13% say they need to improve their financial planning.
Crucially, nearly half of the respondents (44%) state they feel personally responsible for ending generational debt – motivated by the support they have previously received from family or being the only ones financially capable of doing so.
“Youth Month is about reflecting on the past and investing in the future,” Parry says. “This generation is showing us that with the right support, tools, and information they are more than capable of transforming South Africa’s financial landscape.”