Stokvels, a long-standing tradition of communal savings in South Africa, continue to thrive, with seniors playing an integral role in passing down the culture of saving to younger generations. According to data from FNB, 23% of their stokvel members are seniors, and 37% of these stokvels have two or more senior members in their groups. This trend highlights how the values of saving and community are being shared across generations, with seniors and youth often participating in the same groups.
“Group savings have historically been used as a collective savings vehicle to help adults raise families and create communities of like-minded people, and senior citizens continue to embrace this culture while passing on knowledge and principles to younger generations,” says Cebile Magongo, strategic business developer at FNB Cash Investments.
FNB’s findings also reveal that seniors are joining stokvels for a variety of reasons, not just for financial gain, but for social connection.
According to FNB, many seniors use stokvel gatherings as an opportunity to socialise, as they may no longer be actively working. For some, stokvels serve as more than just a place to save; they are venues for organizing group trips or hosting events.
Magongo says: “We have observed that seniors save in stokvels for a variety of reasons. Some of the trends of members joining stokvels are for social benefits, such as organising group trips or getting together for events at various locations. They believe that it's crucial for people of their age, as it helps them to socialise because they are likely not to be actively working and may use stokvel gatherings for purposes other than just collecting contributions.”
FNB’s data further suggests that stokvels with a higher number of senior members are especially common in the Eastern Cape, where 34% of stokvels feature more seniors. Limpopo follows closely behind with 28% of stokvels featuring senior members.
The digital transformation of stokvels has also made it easier for seniors to manage their savings. FNB’s digital stokvel solution has gained popularity due to its minimal administrative costs, transparency, and accountability. "This allows seniors to maximise their savings without incurring high fees," says Magongo. The ability for all members to view the stokvel balance in real time adds an element of trust and security, particularly for older members who may have concerns about mismanagement.
Stokvels remain one of the most popular and effective ways for South Africans to save. However, the challenge has always been ensuring that the savings are effectively managed to meet the goals of the group. For seniors, stokvels offer a low-risk option that they are familiar with and trust, the bank says.
“Stokvels have been instrumental in promoting a culture of saving and encouraging groups to save towards a common goal,” says Magongo. “We continue to see this as more seniors are becoming cautious about their finances and often prefer to save in stokvels because of the low risk and familiarity with the stokvel concepts”.
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