A new joint study by Liberty and the University of Cape Town (UCT) has shown that South Africans aged between 35 and 55 are experiencing growing anxiety regarding retirement provision, job stability, and the rising cost of living, despite being in a period of earning their highest incomes.
Shifting Priorities in Success
The study demonstrates that for this demographic group, financial stability has become more important than accumulated wealth as a primary measure of success. South Africans in their prime careers feel increasingly financially vulnerable as family maintenance costs, supporting relatives, and retirement preparation confront general economic uncertainty, even with higher salaries.
Key Findings of the Study
The report, titled 'The Messy Middle: A focus on mid-careers 35 to 55', is based on interviews with 43 professionals aged 35 to 55 from various industries, as well as secondary research and academic literature. It analyzes the financial realities, aspirations, and concerns of one of South Africa's most economically significant groups.
Peak Earnings and Pressure
According to the study, approximately 16 million South Africans fall into the 35–55 age bracket, with about a third belonging to high and affluent income segments. The average annual income for the 35–44 age group is approximately R378,937, while for the 45–54 age group, it reaches R472,327. Despite these higher incomes, many respondents reported feelings of financial exhaustion and emotional burnout, as their earnings coincide with the most demanding period of their lives.
The report states that many people are going through a phase of 'peak responsibility,' balancing a settled career, home ownership, raising children, supporting extended family, and managing growing financial obligations. Paul Egan, Director of the UCT Liberty Institute of Strategic Marketing, noted: 'The study shows that mid-aged South Africans are not failing at planning, but managing risks under constraints. This generation is trying to hold together careers, families, ambitions, and financial commitments in an environment where the margin for error seems to be shrinking.'
Living on the Edge of Financial Stability
Researchers identified a state they termed 'peak vulnerability'—a life stage where financial obligations reach their maximum, and the ability to recover from financial setbacks decreases as retirement approaches. Although many respondents have established careers, the report points to growing financial fragility.
Nearly three-quarters of working South Africans aged 30 to 49 reported sometimes or regularly living beyond their means, and about 86% financially support children. The cost of education consistently featured as one of the biggest financial burdens for households. Many feared job loss, serious illness, or unexpected financial shocks that could erase years of hard progress. Some described their situation as 'one bad year away from financial regression.'
The study also highlights widespread concern over employment stability, career stagnation, and the impact of technological changes. Many respondents noted that the traditional guarantee of employment no longer exists. Artificial intelligence and rapid technological advancements caused additional anxiety, as some feared their skills would become obsolete while feeling too old to change careers or start professional life from scratch. Researchers also pointed to the so-called 'plateau effect,' where many mid-career professionals feel that promotions and salary growth have slowed down, while their financial obligations continue to rise.
Security Over Wealth
The report suggests that traditional markers of financial success are giving way to a stronger emphasis on stability and resilience. Instead of chasing a luxurious lifestyle or accumulating visible wealth, many respondents stated that their priority is protecting their families' quality of life and preventing financial decline.
John Taylor, Head of Liberty Corporate Benefits Consulting, stated: 'What people want more and more is not extravagance, but security. Today's drive is to remain stable, maintain dignity, and avoid regression.'
Many participants also reported a shift in priorities from continuous career growth to a broader understanding of well-being. Physical and mental health are increasingly viewed as integral parts of maintaining financial security, with concerns about personal well-being often outweighing purely financial worries. For many respondents, protecting health has become critical to preserving income, independence, and overall quality of life amid growing uncertainty.
Evolving Retirement Plans
The study also showed that many South Africans are rethinking their views on retirement. Rather than viewing it as a fixed age or the complete end of working life, respondents increasingly perceive it as a gradual transition involving multiple income streams, flexible work, consulting work, side ventures, and phased career changes.
Many participants expressed concern about whether they have saved enough for retirement, especially after career breaks, economic shocks, or delays in financial milestones. However, the report notes that many no longer view interrupted savings paths as a personal failure. Instead, respondents emphasize flexibility, resilience, and the ability to maintain financial stability during uncertain periods, defining retirement more through independence and dignity than through achieving a predetermined savings goal.
Taylor added: 'For many South Africans, the goal is no longer just retiring at a certain age, but creating sufficient stability and opportunities to confidently navigate an uncertain future.'
The Need for Financial Institution Adaptation
In conclusion, the report argues that financial institutions will need to revise traditional retirement planning models to better align with the realities faced by modern consumers. Researchers insist that financial products and advice must prioritize flexibility, income resilience, and support across different life stages, rather than focusing solely on fixed retirement outcomes.
Taylor believes: 'The role of financial institutions is changing. Consumers increasingly expect financial institutions to act as guides and protectors, helping to reduce fragility, build resilience, and support people through changing life stages, rather than just promoting idealized financial outcomes.'
The report concludes that 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.
