UCT & Liberty Institute study highlights graduate advantage, gender pay gap persistence

Johannesburg - South Africans between the ages of 30 and 39 with tertiary qualifications represent R1 trillion in spending power, according to 2025 research from the UCT Liberty Institute of Strategic Marketing.

The First 100 Paychecks Report: An Investigation into South Africa’s new professionals mapped the financial journeys of 700 graduates from their graduation to their 100th paycheque. It highlights how education, income, and financial choices shape the country’s emerging professional class.

Apart from highlighting their R1 trillion in spending power it showed that: 

• Higher education remains the single biggest predictor of financial success.
• The gender pay gap persists despite educational gains.
• A car remains the most popular major purchase or investment. 
• Women are leading the way in both enrolment and achievement at higher education levels.

“With the First 100 Paychecks Report, we wanted to go beyond the statistics and truly understand the financial journeys of South Africa’s new professionals,” said Zandile Makhoba, Lead Specialist of Research & Insights at Liberty. “This research confirms the transformative power of education when it comes to financial gain, but it also highlights the gaps that need to be addressed if we are to unlock the full potential of our graduates.”

The research was conducted using an academic literature review and extensive secondary research drawing on national datasets, including the National Income Dynamics Study (NIDS), the General Household Survey (GHS), Statistics South Africa, and the Department of Higher Education and Training (DHET).

Expert interviews were conducted to provide contextual insights including 700 interviews with graduates aged between 30 and 39, as well as 60 interviews with students and recent graduates. In addition, video interviews were conducted to capture personal stories and lived experiences that bring the data to life.

The graduate advantage

Graduates, as a segment, remain South Africa’s high-value earners. The research shows that the vast majority of professionals earning above R75,000 per month (90%) hold a university degree or tertiary qualification. Even among those earning between R22,000 and R75,000, 60% have higher education credentials.

Education remains one of the most powerful buffers against unemployment. According to the data, unemployment affects 39% of South Africans without matric, 35% with matric, 22% with other tertiary qualifications, and just 12% among university graduates.

Over 80% of graduates interviewed believe tertiary education was a worthwhile investment and 65% said their degree was instrumental in securing their current job.

Seventy six percent of graduates surveyed live in middle class or upper-class households confirming the strong correlation between tertiary education and economic outcomes.

Shifting attitudes to money, debt and investment

The First 100 Paychecks Report also reveals a growing maturity in how South Africa’s graduates approach debt and investment.

Graduates in their 30s are showing a strong tendency towards conscious debt management. 

According to the research, 85% of respondents had no student debt, though lower earners were more likely to carry their study loans into their 30s. 

The Standard Bank Youth Barometer released in July this year highlighted that under-35s are more cautious with credit, holding fewer credit cards, making smaller purchases, and repaying balances more frequently.

This cohort is also broadening its approach to wealth-building and protection with 45% purchasing insurance cover on household items.  At least 16% have investments outside of South Africa, while 8% own a new home. 40% have a share investment account, 37% make personal pension contributions and 64% have pensions through work. 

Owning a vehicle remains the most popular major investment with 78% owning one while 60% own a home or an apartment.  

“These findings suggest that young professionals are entering their peak earning years with a more balanced approach to financial security, blending traditional assets such as homes and vehicles with investments and pensions, while remaining disciplined about debt,” according to Associate Professor and Head of Marketing Studies at UCT, Dr James Lappeman.

A shifting education landscape

While the number of learners achieving a bachelor pass in matric has grown sharply, from 107,000 in 2008 to 337,000 in 2024 according to the 2024 National Senior Certificate Examination Report published by the Department of Basic Education, access to tertiary education has not kept pace. University enrolments increased by just 2.6% between 2011 and 2019, compared to a 7% growth in bachelor passes over the same period.

Gender dynamics are also shifting. Women now account for 63% of all students enrolled in higher education institutions, outnumbering men across every field, including traditionally male-dominated disciplines like Science, Engineering, and Technology. Since 2013, women have achieved more than 220,000 additional bachelor passes than men.

However, the research reveals a stark gender pay gap, with men reporting an average net monthly income of R53,500, compared to R30,000 for women. 

The results of the research into the financial lives of young professionals in South Africa highlights the pressures and opportunities that they face. It demonstrates that while there has been some progress and that many qualified people are optimistic, they still require support in building long-term financial resilience and addressing some of the challenges that remain. 

“As a financial services organisation, these insights allow us to delve deeper into relevant, tailored and hyper-personalised solutions to meet this important cohort in their reality,” adds Makhoba.