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The odds are stacked against her: why women retire with 21% less in assets

Research shows that women are less likely than men to retire comfortably. Image: RON AI It's a well known fact that women in South Africa earn 24% less than men, on average. This, and other unique challenges, also have a significant knock-on effect when it comes to saving for retirement. A sobering statistic, recently released by Discovery Corporate, is that South African women retire with 21% less in retirement assets than their male counterparts. The study also found that females were 30% more likely to make early withdrawals from their retirement savings pots, from the two-pot retirement system introduced in 2024. They're also 80% more likely to make such withdrawals in order to cover school fees. ALSO READ: The risks of withdrawing from your Two-pot retirement system This is all in spite of the fact that women are 20% more likely than men to make retirement contributions over and above their employer's default rate. This may show a stronger intention to save for the future, but ultimately, several unique challenges prevent women from achieving a comfortable retirement. 'With August being National Women's Month in South Africa, we took a deep dive into the retirement data across our umbrella funds. Our analysis shows that women are definitely saving and actively contributing towards their retirement. Yet, the system still works against them,' says Nonku Pitje, CEO of Discovery Corporate and Employee Benefits. 'While lower pay contributes to the gender retirement gap, the issue is far more complex. Women face a lifetime of unequal financial pressures and retirement systems often fail to reflect their lived experiences. These systemic shortcomings widen the gap, leaving many women financially vulnerable in retirement.' The study found that unequal caregiving responsibilities deeply impacted their careers, with Stats SA figures showing that 43.4% of children live only with their mothers, compared to 3.9% in the case of fathers. This could also lead to fewer promotion opportunities, with the 24% average gender pay gap rising to 30% among those over 45 years of age, and 39% for those aged 65 and older. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Next Stay Close ✕ The gender pay gap in South Africa. Image: Supplied Compounding the retirement challenges is the fact the females, on average, live for two years longer than men. 'The gender pay gap is just the starting point. Our data highlights deeper systemic issues beyond unequal pay. Ultimately, by the time women retire, they've saved 21% less, will live longer, and continue to support family members across multiple generations and life stages,' Pitje said. 'The data reflects clear structural patterns and calls for benefit designs that respond to real life.' Ralene Grobler, spokesperson for Momentum Financial Planning, said financial independence was becoming increasingly important for women.