The gap between South Africans who are financially secure and those struggling to make ends meet is growing, as more workers take on debt and turn to gambling in an attempt to stay afloat, according to the Old Mutual Savings & Investment Monitor 2026.

While some South Africans are building savings and investing for the future, many others are becoming increasingly reliant on debt simply to cover everyday expenses, underscoring the deepening financial divide.

The report found that 40% of working South Africans described themselves as highly or overwhelmingly financially stressed, with financial stress increasing most sharply among people earning less than R30000 a month.

The divide is also evident in borrowing patterns. Nearly two-thirds (64%) of respondents now have some form of personal loan, up from 54% a year earlier. Rather than borrowing for discretionary spending, many said they were taking on debt to meet basic needs.

More than a quarter borrowed simply to make ends meet, while others borrowed to pay off existing debt, repair their homes or cover unexpected expenses.

Nearly two-thirds (62%) said their most recent loan had been prompted by an unforeseen financial shock.

The monitor also found evidence of two distinct financial realities emerging.

Higher-income earners were significantly more likely to report saving regularly, investing and feeling financially secure, while lower-income households were disproportionately affected by rising living costs, debt and financial stress.

The financial strain appears to be reshaping how many South Africans try to make ends meet, with growing numbers turning to gambling in the hope of supplementing their income or paying off debt. More than half (53%) of employed South Africans gamble, while four in 10 (42%) said they often gamble to help cover household expenses or pay off debt, up slightly from 40% in 2025.

Lower-income earners were the most likely to rely on gambling to supplement their finances.

Among people earning between R8000 and R14 999 a month, more than half (52%) said they often gamble to cover expenses or debt, making them the income group most likely to rely on gambling to supplement their finances.

The findings suggest gambling is increasingly being used as a financial coping mechanism rather than simply a form of entertainment, particularly among lower-income earners.

The consequences are becoming increasingly apparent. The proportion of working South Africans who said gambling had caused them financial difficulty rose from 12% in 2025 to 22% in 2026. Among gamblers themselves, 41% said gambling had caused financial hardship, up from 24% a year earlier.

Financial pressure is also the main reason people begin gambling.

More than half of gamblers (53%) said they started because they were looking for ways to make extra money, while 31% cited entertainment and 29% said they had been introduced to gambling by friends or colleagues.

Lower-income earners were the most likely to view gambling as a source of additional income. Among gamblers earning between R8,000 and R14,999 a month, 61% said they started gambling to make extra money.

Sports betting remains the dominant form of gambling in South Africa. Nearly two-thirds (63%) of gamblers said they bet on sport, followed by slot machines (46%), Lotto (42%), casino table games (26%) and horse racing (11%).

The report also found that gambling is particularly common among younger South Africans and men. Nearly six in 10 adults aged 18 to 29 gamble, compared with 40% of people aged 50 and older.

Men are also more likely to gamble than women, with participation rates of 58% and 47%, respectively.

While most gamblers participate weekly or monthly, the report found that 9% gamble every day or almost every day, raising concerns about potentially harmful gambling behaviour.

The financial toll was greatest among lower-income gamblers. More than half (54%) of those earning between R8 000 and R14 999 a month said gambling had caused them financial difficulties, compared with 24% of gamblers earning between R30 000 and R59 999.