A nation’s savings culture stands on shaky ground when 40% of its working population frequently gamble in the hope of a jackpot to pay off their debts. This is increasingly happening in SA, particularly among lower income earners, according to the Old Mutual (OM) 2025 Savings and Investment Monitor – an annual survey of employed South Africans aged 18 to 65 who earn R8 000 or more. OM found that more than half of working South Africans gamble, most of them (58%) in the 30–49 age bracket, and that more men (57%) than women gamble. Making matters worse, one in five gamblers has had to borrow, use credit or sell something to fund their gambling.

For large parts of the population, incurring more debt seems the only way to make it through each month. Unsurprisingly, nearly two out of five working South Africans surveyed by OM said they are ‘considerably financially stressed’.

‘South Africa is an environment in which consumers have been financially strained over an extended period as a result of elevated rates of consumer price inflation and associated high interest rates,’ writes Adrian Saville, finance, strategy and economics professor at the Gordon Institute of Business Science, in the Conversation. ‘This strain comes on top of the fact that the economy has grown below the population growth rate for almost 15 years, unemployment rates are high, and grossly skewed inequality is deeply entrenched.’

Importantly, he points out that saving is a learnt behaviour. As such, it should be possible for SA households to move away from the ‘deeply ingrained, consumer-oriented culture’ of their spending patterns. ‘Countries as diverse as India and Chile have achieved savings rates that challenge the supposition that households in low-income countries cannot save,’ writes Saville. ‘The bald truth is that higher levels of saving across countries and through time drive economic growth and well-being.’

In SA, the private sector has been the only significant contributor of savings over the past few decades. But government started playing its part by introducing the compulsory ‘two pot’ retirement system, which splits all new retirement fund contributions into a savings pot (accessible once a year before retirement) and a retirement pot (preserved until retirement). This forced saving will have positive implications for future retirees and – by extension and the law of large numbers – for the country, according to Saville.

He highlights the importance of saving at the household level, because that’s where countries that have successfully transformed from low-income to middle-income and even high-income nations have excelled. ‘They have effectively encouraged and activated individual saving,’ says Saville. ‘Super-star examples of countries which have perfected this cocktail include the likes of Chile, Estonia, China, South Korea, Singapore, Hong Kong and Taiwan.’

Unfortunately, the risk of corruption and irregular expenditure has eroded trust in SA’s institutions and discouraged long-term investment and saving by individuals and organisations, according to the Institute of Internal Auditors South Africa (IIA SA). ‘Internal auditors assist management to detect and prevent these risks,’ says Arlene-Lynn Volmink, CEO of the IIA SA. ‘By instilling public confidence in organisations, citizens and organisations may be encouraged to save and invest in financial institutions, feeling secure that their well-earned funds are protected. Therefore, internal auditors help create the conditions for a healthier economic environment, which can support and promote a stronger national savings culture.’

However, to be able to save money, South Africans need to be financially literate. The JSE has been a forerunner in this regard – its Investment Challenge, an annual competition to increase the financial knowledge of school learners and tertiary students – has been in existence for more than 50 years. In recent times it has introduced the Virtual Trading Game, directed at South Africans of all ages, teaching investing on the JSE and the larger role that such investment plays in the country’s economy.

‘Financial literacy, when coupled with ethical decision-making, fosters a climate of transparency and accountability – one that is less vulnerable to fraud, misconduct and the ripple effects of a deficit in ethical and effective leadership,’ says Volmink. ‘It empowers individuals to make better-informed choices both personally and professionally, strengthens organisational behaviour and resilience and in turn contributes to an economically stable society.’

In the broader industry, the financial sector codes require the financial services industry to spend 0.4% to 0.5% of net profit after tax on consumer financial education. ‘Financial literacy gaps continue to cost South Africans millions in lost savings,’ says Nzwa Shoniwa, managing executive of Sanlam Umbrella Solutions. ‘One theme echoed throughout Sanlam’s 2025 Benchmark Survey – “Education, communication and professional financial advice are important”.’ But although 64% of respondents say regular financial education is very important, only 11% were provided access to a financial adviser through their employer fund when they withdrew from it, and nearly 50% rely on Google for financial advice.

The groups most at risk of falling behind in their retirement savings are women and young adults, says Shoniwa. ‘Adults aged between 18 and 34 are more likely to withdraw from savings for debt relief and basic needs. Women, especially in lower salary bands, withdraw smaller amounts and face longer-term financial insecurity.’ To address this, he says retirement products must be designed to accommodate career breaks and income volatility. Targeted financial education must also start early, with support from employers and product providers. He suggests offering webinars and nudges tailored to vulnerable groups, especially women and young adults, and that financial education be embedded into onboarding and wellness programmes.

‘While efforts to improve financial literacy are commendable, the broader system continues to face mounting pressure – from rising costs to implementation challenges,’ says Shoniwa. ‘These also demand a more co-ordinated and sustainable response.’

The Financial Sector Conduct Authority (FSCA) has outlined priorities for the next three years to advance consumer financial education. Its recently released Financial Education Plan targets vulnerable and high-impact groups such as students, SMMEs and grant beneficiaries, with measures that include advancing digital financial literacy; promoting a consumer-centric regulatory approach; and boosting thought leadership and outreach to vulnerable groups. The FSCA’s flagship multi-stakeholder campaign to drive financial literacy is Money Smart Week SA, held in August every year. In 2025, 77 banks, insurers, regulators, NGOs and universities participated to deliver workshops, activations and education across the country.

‘It’s clear that the FSCA is positioning itself not just as a regulator, but as a collaborative partner in building financial literacy and education,’ says Shoniwa. ‘Industry stakeholders must partner with the FSCA as it shifts focus towards leveraging digital tools and innovative technologies to help consumers navigate increasingly sophisticated products and services.’

He says it’s vital banks and retirement funds meet members ‘where they are’ digitally, emotionally and financially. Technology is key to this, as it allows segmented communication, real-time support and predictive analytics to guide members towards better decisions that have a positive impact on their retirement outcomes. He suggests custom dashboards that show projected savings outcomes and tax implications, supported by chatbots and mobile apps that provide 24/7 access to benefit counsellors and financial guidance.

‘Send timely nudges, for example, reminders before withdrawal windows or alerts when savings fall below thresholds,’ says Shoniwa. ‘Use behavioural triggers to prompt engagement, such as offering budgeting tips after a withdrawal or suggesting annuity options near retirement. And offer gamified savings challenges to encourage consistent contributions and financial literacy.’

While Discovery Bank was the world’s first bank built around behavioural banking in 2018, SA’s major banks are now also using nudges through their apps, rewards and savings prompts. FNB’s eBucks Rewards nudges digital payments, on-time repayments and savings by offering loyalty points redeemable for travel, fuel and shopping. Capitec’s Live Better programme nudges customers to save by rounding up purchases, offering cash back and rewarding goal-based savings. Absa Rewards recently added app-based nudges for budgeting and spending categories.

Nedbank’s Greenbacks Rewards applies behavioural nudges for positive reinforcements. Clients earn uncapped cashback on purchases and exclusive lifestyle rewards that can also be channelled into reinvestments, turning rewards from everyday banking behaviours into a practical savings habit.

‘We recognise that saving and investing can feel overwhelming or even irrelevant to many South Africans, especially those who are new to banking or have disengaged from financial planning,’ according to Nedbank. ‘To shift this perception, we use campaigns that make savings feel aspirational, simple and culturally relevant.’ The bank’s #GetMoneyFit campaign, for example, reframes financial literacy as a fitness journey to make saving and budgeting feel empowering.

‘Both #GetMoneyFit and Greenbacks make it easy for clients to see how small changes (such as increasing a savings balance by R3 000 over three months or hitting a spend milestone) lead to better outcomes,’ says Nedbank. ‘By linking visible progress to better earn rates, we nudge clients to view saving as a routine part of life.’

The results of today’s financial literacy and savings campaigns will only be visible over time.

Ultimately, South Africans need to understand that the real jackpot lies in cultivating a savings culture where people don’t gamble on high-risk schemes to escape debt, but rather start saving what they can, little by little, with patience and consistency.

By Silke Colquhoun