Closing the gender wealth gap needs systemic change — but women must also act
South African women still face major challenges when it comes to building wealth. In fact, the wealth gap between men and women in our country is wider than the global average.
According to the WTW Global Gender Wealth Equity report, South African women retire with only 71% of the wealth that men do. This is lower than the global average of 74%. The difference becomes even greater in senior positions, where women who are managers and executives retire with just 62% of the wealth their male colleagues accumulate.
There are many reasons for this. One of the biggest is unequal pay. Women's Report Africa points out that, in 2021, South African women earned only 78 cents for every rand earned by men. Shockingly, this was a decline from 89 cents in 2008.
Furthermore, fewer women than men in South Africa are actually employed. Only 54.3% of working-age women are active in the economy compared to 64.9% of men. And the unemployment rate for women remains unacceptably high at 35.7%, according to date from
Women are also more likely to take breaks from work to care for children or other family members. This often means lower earnings and less money saved over time.
As a result of all these factors, many women struggle to save enough for retirement, which is a significant problem when you consider that, on average, women tend to live about six years longer than men. This means women actually need more money to cover those extra years.
Even for high-earning women, the path to wealth creation is hindered by investment hesitancy. A 2023 study by Maya on Money and Satrix found that only 15% of women felt very confident about investing, compared to 42% of men. About a third of the women surveyed said they avoid investing because they don't know enough about it and nearly one in five said it makes them feel anxious or uncertain.
Many women say they hold back from investing because they feel pressured to be financially cautious for the sake of their families.
To change this, women — and those on the path to building wealth — need to start seeing investing as the powerful tool it can be to achieve financial independence. This journey starts with the understanding that they have to do more than just save in a bank account or stokvel. Investing in things like shares or exchange-traded funds can help money grow faster over time.
Targeted education is one of the keys to investment success and programmes like the JSE's #SheInvests are useful ways for women to build skills and confidence in investing.
Using tax-friendly products such as retirement annuities, pension funds and tax-free savings accounts can also make a big difference. These products offer tax breaks and help protect savings. It's especially important for women to take advantage of these during peak earning years to help make up for times when they might earn or save less.
Women should also rethink how they see risk. Being cautious is smart but avoiding all risk can mean missing out on opportunities. Taking calculated risks, such as maintaining equity exposure within a diversified portfolio, is essential for achieving growth that keeps pace with inflation.
Finally, good financial planning plays a critical role. A trusted adviser can help build a holistic strategy that balances short- and long-term goals, optimises tax efficiency and effectively incorporates retirement planning. Women may also have access to more sophisticated vehicles like managed portfolios or offshore investments, which require professional insight to manage effectively.
Having a good financial adviser is especially helpful during life changes like a career break or divorce. Having support, especially at these times, can boost confidence and keep women on track on their wealth building journeys.
But closing the gap certainly isn't the responsibility of women alone. It also requires that we improve the systems that hold women back. Businesses and the government have a key role to play in this. Employers need to look at how they pay and support women, offering flexible work, fair promotions and support for mothers returning to work.
Ultimately, financial independence and personal wealth growth for women are more than just personal milestones — they are powerful drivers of broader social progress. When women thrive financially, households, communities and entire economies benefit. So, closing the gender wealth gap isn't just the right thing to do; it's essential for building a stronger, more resilient South Africa for all.
Hein Klee is an executive at Nedbank Financial Planning.
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South African women retire with only 71% of the wealth that men do. Photo: File South African women still face major challenges when it comes to building wealth. In fact, the wealth gap between men and women in our country is wider than the global average. According to the WTW Global Gender Wealth Equity report, South African women retire with only 71% of the wealth that men do. This is lower than the global average of 74%. The difference becomes even greater in senior positions, where women who are managers and executives retire with just 62% of the wealth their male colleagues accumulate. There are many reasons for this. One of the biggest is unequal pay. Women's Report Africa points out that, in 2021, South African women earned only 78 cents for every rand earned by men. Shockingly, this was a decline from 89 cents in 2008. Furthermore, fewer women than men in South Africa are actually employed. Only 54.3% of working-age women are active in the economy compared to 64.9% of men. And the unemployment rate for women remains unacceptably high at 35.7%, according to date from Women are also more likely to take breaks from work to care for children or other family members. This often means lower earnings and less money saved over time. As a result of all these factors, many women struggle to save enough for retirement, which is a significant problem when you consider that, on average, women tend to live about six years longer than men. This means women actually need more money to cover those extra years. Even for high-earning women, the path to wealth creation is hindered by investment hesitancy. A 2023 study by Maya on Money and Satrix found that only 15% of women felt very confident about investing, compared to 42% of men. About a third of the women surveyed said they avoid investing because they don't know enough about it and nearly one in five said it makes them feel anxious or uncertain. Many women say they hold back from investing because they feel pressured to be financially cautious for the sake of their families. To change this, women — and those on the path to building wealth — need to start seeing investing as the powerful tool it can be to achieve financial independence. This journey starts with the understanding that they have to do more than just save in a bank account or stokvel. Investing in things like shares or exchange-traded funds can help money grow faster over time. Targeted education is one of the keys to investment success and programmes like the JSE's #SheInvests are useful ways for women to build skills and confidence in investing. Using tax-friendly products such as retirement annuities, pension funds and tax-free savings accounts can also make a big difference. These products offer tax breaks and help protect savings. It's especially important for women to take advantage of these during peak earning years to help make up for times when they might earn or save less. Women should also rethink how they see risk. Being cautious is smart but avoiding all risk can mean missing out on opportunities. Taking calculated risks, such as maintaining equity exposure within a diversified portfolio, is essential for achieving growth that keeps pace with inflation. Finally, good financial planning plays a critical role. A trusted adviser can help build a holistic strategy that balances short- and long-term goals, optimises tax efficiency and effectively incorporates retirement planning. Women may also have access to more sophisticated vehicles like managed portfolios or offshore investments, which require professional insight to manage effectively. Having a good financial adviser is especially helpful during life changes like a career break or divorce. Having support, especially at these times, can boost confidence and keep women on track on their wealth building journeys. But closing the gap certainly isn't the responsibility of women alone. It also requires that we improve the systems that hold women back. Businesses and the government have a key role to play in this. Employers need to look at how they pay and support women, offering flexible work, fair promotions and support for mothers returning to work. Ultimately, financial independence and personal wealth growth for women are more than just personal milestones — they are powerful drivers of broader social progress. When women thrive financially, households, communities and entire economies benefit. So, closing the gender wealth gap isn't just the right thing to do; it's essential for building a stronger, more resilient South Africa for all. Hein Klee is an executive at Nedbank Financial Planning.
