The SA women retirement gap is evident as South African women retire with 21% less in retirement assets than men. This is according to Discovery Corporate’s analysis of its umbrella funds. The same dataset links the shortfall to lower lifetime earnings and behaviour forced by financial pressures.
Why the Gap Persists
The gender pay gap remains a key driver. On average, women earn about 24% less than men, and the gap widens sharply with age. This compounding effect occurs over decades of saving. As a result, the SA women retirement gap grows alongside career seniority.
Caregiving loads intensify the pressure. Stats SA figures show 43.4% of children live only with their mothers, limiting career progression and lifetime contributions. Women also live about two years longer than men, so their savings must stretch further.
Behaviour Under Strain
Since the two-pot system launched in 2024, women have been 1.3 times more likely than men to draw from their savings. Moreover, they are 80% more likely to use those withdrawals for school fees. These short-term choices, often made out of necessity, widen the SA women retirement gap later on.
Global Context
The wealth gap here is worse than the world average. A WTW study cited by The Star reports that South African women retire with just 71% of men’s wealth. Globally, the figure is 74%. For female managers and executives, the figure drops to 62%.
What Employers and Policymakers Can Do
Discovery’s Nonku Pitje urges employers to redesign benefits for equity, not compliance. They should tailor contribution paths around career breaks, push financial education, and nudge members into resilient saving behaviour. Those steps can help close the SA women retirement gap.
What Women Can Do Now
Increase contributions during peak earning years where possible and avoid unnecessary early withdrawals. Moreover, seek advice. Advice-led households hold far higher invested assets than self-reliant ones, Discovery’s analysis notes. Small, consistent actions compound into better retirement outcomes.
