South Africans are feeling more in control of their day-to-day finances, but fewer than half believe they could cope with a financial setback, highlighting the gap between financial confidence and resilience.
The finding comes from the 2026 Sanlam Financial Confidence Index, which examines how South Africans feel about and report managing their money across three areas: financial self-determination, or whether they set and follow financial goals; financial resilience, or whether they believe they can withstand financial pressure and unexpected setbacks; and financial wellbeing, which reflects how secure and emotionally settled they feel about money.
Conducted with African Response, the research surveyed 1 502 South Africans aged 20 to 70 who earned at least R1 000 a month from any source. The research covered all nine provinces but was conducted predominantly in metropolitan and urban areas. Most interviews were completed online, with about one in five conducted face to face to include older and lower-income respondents. Fieldwork took place in May 2026.
The overall index, measured on a scale of 0 to 100, increased by one point from 53 in 2025 to 54 in 2026, after rising from 47 to 53 between 2024 and 2025. Self-determination remained unchanged at 61, while resilience slipped from 58 to 57. Financial wellbeing increased from 32 to 35, its highest level since the study began in 2023, although it remains the weakest of the three dimensions.
The results suggest that people feel better able to manage day-to-day financial pressure without necessarily feeling better equipped to absorb a setback. The proportion of respondents who felt in control of their day-to-day and month-to-month finances increased from 61% to 64%, but only 49% believed they could handle a financial setback, unchanged from last year. Only 28% said they rarely or never felt stressed about daily money matters.
Greater control, but no improvement in resilience
The uneven movement in the results points to a distinction between managing regular commitments and feeling able to deal with an unexpected financial event.
Although 64% felt in control of their routine finances, the proportion who believed they were on track to repay their debt within the agreed period declined from 63% in 2025 to 59% this year. About two-thirds, or 67%, said they lived within their income, unchanged from last year.
Fewer respondents also believed they could rely on family or friends in an emergency, with the proportion falling from 58% to 53%.
Kele Boakgomo, co-founder and chief executive of Yugrow, said the findings highlighted the importance of strengthening the things people could control as support from family and friends became less certain.
The report says monthly planning appears to be helping people manage their immediate commitments but is not necessarily enabling them to build a larger emergency cushion.
In the report’s six qualitative interviews, participants said they prioritised groceries, school fees, insurance premiums, transport costs, and their children’s needs when money was tight. Eating out, snacks, travel, and other non-essential expenses were among the first to be reduced. The report states that the six participants’ experiences are not nationally representative.
Boakgomo said the findings showed people making deliberate trade-offs to maintain stability, protecting essential expenses, cutting discretionary spending, and managing debt more carefully.
She said adaptive behaviour was not the same as stronger financial capacity: resilience had not strengthened, suggesting that buffers remained constrained even as people became more resourceful.
Financial plans are not always tracked
Almost three-quarters of respondents, or 74%, said they were aware of gaps in their financial knowledge. The proportion who had written financial goals increased from 63% to 65%, but only 43% had a system for tracking their progress, unchanged from 2025.
Just over half had attached time frames to their plans: 56% had written short-term goals, and 51% had written long-term goals. Although the proportion with written financial goals increased, the overall self-determination score remained unchanged at 61.
Boakgomo recommended that people set aside time each month to review what had changed in their circumstances and decide on one manageable action. This could include moving a small amount into savings, paying extra towards debt, or adjusting one area of spending.
The findings also show a gap between knowing what financial products respondents need and trusting their own financial abilities. Although 78% said they knew which financial products they needed and 71% were building skills to improve their earning power, only 43% said they trusted their own financial abilities. Fewer than half, or 48%, said they reviewed their finances with an adviser every year.
Wellbeing improves from a low base
Financial wellbeing recorded the largest numerical movement among the three dimensions, increasing from 32 to 35. The report says the main shift was that respondents appeared to feel less exposed about aspects of their financial future, although pressure associated with their present circumstances remained high.
The proportion who rarely or never felt that their assets were unprotected increased from 36% to 40%, while those who rarely or never felt insecure about their future earning ability increased from 30% to 34%. The proportion who rarely or never felt scared or self-conscious about discussing money rose from 33% to 45%.
The proportion who rarely or never felt hopeless about their debt increased slightly from 43% to 45%. However, only 28% rarely or never felt stressed about day-to-day money matters, and the same proportion rarely or never felt unhappy about their current financial position. Only 29% rarely or never felt anxious about having too little invested.
Boakgomo said the improvement in wellbeing did not necessarily indicate greater optimism about the economy. Instead, she said, the discipline people had developed in response to financial pressure might be strengthening their confidence in their ability to manage future difficulties.
Income, savings, and manageable debt underpin confidence
When respondents were asked what contributed to their financial confidence, a reliable income ranked first, selected by 51%. This was followed by savings or an emergency fund at 48%, being debt-free or having manageable debt at 45%, and having a financial plan or budget at 29%.
Access to credit ranked last, with only 17% saying it contributed to their financial confidence. Among this group, 41% valued credit as a safety net for unexpected costs, 34% regarded it as a means of managing cash flow between paydays, and 25% valued it for purchases they could not otherwise afford.
Lee Hancox, head of channel and segment marketing at Sanlam, said respondents ranked reliable income, savings, and manageable debt well ahead of access to credit.
The results indicate that feeling in control of routine finances does not necessarily translate into confidence about withstanding a financial shock. Respondents reported greater day-to-day control and somewhat better financial wellbeing, but perceived resilience did not improve, and financial stress remained widespread.
