Demographic Determinants of Financial Stress and Well-Being in South Africa: Evidence from a Longitudinal Panel (2019–2021)

Abstract Financial stress (FS) and financial well-being (FWB) are experienced unevenly across South Africa’s demographic and geographic groups, with the COVID-19 pandemic further deepening these disparities. This study investigates how FS and FWB changed over a three-year period (2019–2021) across five key demographic variables: age, income, gender, relationship status, and province of residence. It also examines the exacerbating effects of the COVID-19 pandemic on these trends. Using a longitudinal panel design, the study analysed data from the Old Mutual Rewards Program survey. In total, 6,713 individuals were assessed annually for FS and 2,923 for FWB. Statistical analyses, including ANOVA, Welch’s test, and post hoc comparisons, were used to assess group differences, which showed significant relationships between all five demographic variables and both FS and FWB scores. Younger adults, lower-income earners, women, single individuals, and residents of many economically marginalised provinces reported higher FS and lower FWB. The findings highlight the need for financial interventions and policy measures, such as youth-focused financial literacy programs, gender-equitable employment policies, and geographically tailored social protections. By incorporating longitudinal evidence, this study contributes to both the theoretical understanding and practical design of strategies aimed at improving financial resilience in the context of inequality and crises.