South Africans in their prime earning years are feeling economically vulnerable despite high wages, as the costs of raising families, supporting relatives and preparing for retirement collide with growing economic uncertainty.
That's one of the key findings of “The Messy Middle: A Focus on Mid-Career 35 to 55”, a new study from Liberty and the University of Cape Town's Liberty Institute of Strategic Marketing, which found that many mid-career professionals are redefining financial success.
Based on interviews with 43 professionals aged 35 to 55 from various industries, supported by secondary research and academic literature, the report explores the aspirations, concerns and financial realities facing one of South Africa's most economically important demographics.
extreme earnings, extreme pressure
Research shows that approximately 16 million South Africans fall into the 35 to 55 age group, of which almost a third belong to the high-income and affluent class.
Average annual earnings for those aged 35 to 44 are approximately R378 937, rising to R472 327 for those aged 45 to 54.
Despite earning so much, many respondents said they are feeling financially stressed and emotionally exhausted as their income coincides with the most demanding period of their lives.
According to the report, many people are going through a phase of “extreme responsibility”, balancing established careers with home ownership, raising children, supporting extended family members and managing increasing financial commitments.
Paul Egan, director of the UCT Liberty Institute of Strategic Marketing, says, “Research shows that mid-career South Africans are not failing to plan, they are managing risk under pressure. This is a generation that is trying to juggle career, family, aspirations and financial commitments in an environment where the margin for error is becoming increasingly slim.”
living on the edge
Researchers have identified what they describe as “peak vulnerability”, a stage of life where financial obligations are at their highest while the opportunity to recover from financial setbacks becomes increasingly limited as one approaches retirement.
Although many respondents have established careers, the report points to growing financial fragility.
Nearly three-quarters of working South Africans aged 30 to 49 say they sometimes or regularly live beyond their means, while about 86% support children financially. The cost of education has been consistently identified as one of the largest financial burdens facing families.
Many respondents said they fear layoffs, serious illness or unexpected financial shocks that could erase years of hard-earned progress. Many felt as if they were “one bad year away” from financial regression.
The study also highlights broader concerns about job security, career stagnation and the impact of technological change.
Despite holding established positions, many respondents said traditional job security no longer exists. Artificial intelligence and rapid technological advancements have created additional anxiety, with some people fearing that their skills may become obsolete as well as feeling too old to change careers or start over professionally.
Researchers also identified what they call the “plateau effect,” where many mid-career professionals find that career advancement and salary increases have slowed, even as their financial obligations continue to increase.
Success no longer means money
The report suggests that traditional markers of financial success are giving way to a greater focus on sustainability and resilience.
Rather than pursuing a luxurious lifestyle or accumulating visible wealth, many respondents said their priority is to protect their family's quality of life and avoid financial decline.
John Taylor, head of benefits consulting at Liberty Corporate Benefits, says, “What people increasingly want is not excess, but security. Today the aspiration is to remain stable, maintain dignity and avoid slipping backwards.”
Many participants also reported a shift in priorities away from continued career advancement toward a broader sense of well-being.
Physical and mental health are increasingly recognized as essential to maintaining financial security, with concerns about personal well-being often outweighing purely financial concerns.
For many respondents, protecting their health has become important to maintain their income, independence and overall quality of life in an increasingly uncertain environment.
Retirement plans are changing
The research found that many South Africans are also rethinking retirement.
Rather than viewing retirement as a certain age or a complete end to working life, respondents view it as a gradual transition that includes multiple income streams, flexible employment, consulting work, side businesses, and phased career changes.
Many participants expressed concerns about whether they would have saved enough for retirement, especially after experiencing career interruptions, economic shocks, or delayed financial milestones.
However, the report found that many people no longer consider disrupted savings trips as a personal failure.
Instead, respondents emphasized flexibility, resiliency, and the ability to maintain financial stability through uncertain periods, with retirement defined by independence and dignity rather than reaching a predetermined savings goal.
“For many South Africans, the goal is no longer simply to retire at a certain age, but to create enough stability and optionality to navigate an uncertain future with confidence,” says Taylor.
Financial institutions must adapt
The report concludes that financial institutions will need to rethink traditional retirement planning models to better reflect the realities facing modern consumers.
Rather than focusing solely on certain retirement outcomes, researchers argue that flexibility, income flexibility and support at different life stages should be prioritized in financial products and advice.
Taylor says, “The role of financial institutions is evolving. Consumers increasingly expect financial institutions to act as guides and advocates that help reduce fragility, build resilience and support people through changing life stages, not just promote ideal financial outcomes.”
The report says this will require products, financial advice and communications strategies that acknowledge changing financial circumstances, support major life changes and focus on long-term sustainability rather than perfection.
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