Factors that put women at risk financially

Women are often better investors than men, with research showing they take measured risks, favour long-term holdings, and remain calm during market downturns. These traits set them up for success, yet unique financial risks still leave many women vulnerable—making it essential to recognise and address these challenges for lasting security.

Your marriage contract: A marriage contract is not just a legal formality - it determines the financial consequences of your relationship and can have lasting effects on your financial well-being. Surprisingly, many couples have little understanding of what their contract entails. Those married in community of property are especially vulnerable, as they share a joint estate in equal, undivided shares, including all debts. This means that if one spouse is financially reckless, the other may find themselves equally liable for debts incurred. 

Not generating an income: Becoming a stay-at-home parent is a deeply personal decision, but it comes with significant financial implications. Firstly, pausing your career often means pausing your retirement contributions, and if you need to dip into savings to cover household expenses, you could erode the very capital you worked hard to accumulate. Further, returning to work later in life can feel like starting from scratch, with fewer years to rebuild wealth.

Relying solely on your spouse’s income can also alter the dynamics in your relationship, and should the marriage break down, you may find yourself financially exposed. If you do choose to step away from formal employment, plan carefully with your spouse. Agree on how your retirement savings will be safeguarded and how you will protect your future independence.

Dependence on maintenance payments: Single mothers often find themselves financially dependent on maintenance payments from a child’s father, and, unfortunately, these payments are not always reliable. Inconsistent maintenance can quickly derail monthly budgets, lead to debt, and force repeated trips to maintenance courts, costing time, energy, and even lost income. To protect yourself, we advise building a financial safety net. Aim to keep at least three months’ worth of maintenance payments in an accessible emergency account. This buffer provides breathing space if payments are late and gives you time to seek legal remedies without compromising your household stability.

Not having your own retirement plan: Relying on your spouse’s retirement planning is a dangerous gamble. A secure retirement requires careful planning, time in the market, and disciplined saving. Expecting one partner to save enough for two people is rarely realistic or achievable. In addition, contributing to a retirement fund in your own name comes with valuable tax benefits, making it financially wise to build your own nest egg. Keep in mind that, in general, women tend to outlive men by two to five years, meaning they need more retirement savings to maintain the same standard of living. The best solution is to prepare a joint retirement plan that maximises both partners’ contributions and ensures adequate provision for both lifespans. Just as importantly, remain actively involved in the planning process and review your plan annually.

Not protecting your income: If you earn an income, protecting it is vitally important. Income protection cover ensures that if illness or disability prevents you from working, you will continue to receive an income until retirement age. Without this safety net, you risk losing your financial independence and becoming reliant on a spouse or family. A comprehensive income protection policy offers security and peace of mind, ensuring you are financially protected against unforeseen circumstances that could jeopardise your ability to earn.

Investing too conservatively: Women’s cautious investment style can be a double-edged sword. While avoiding impulsive investment decisions is a strength, being overly conservative can be detrimental in the long run. Many women shy away from equities and other growth assets, opting for the perceived safety of cash investments. However, over time, inflation steadily erodes the value of cash, undermining years of disciplined saving. With longer life expectancies, women must ensure their retirement investments include enough growth assets to outpace inflation. A diversified, long-term investment plan can help strike the right balance, protecting capital while still achieving meaningful growth.

Women’s discipline, patience, and long-term outlook support strong investing outcomes, but social and structural factors can still leave them financially vulnerable. From marriage contracts to retirement planning, the message is clear: safeguard your independence and build resilience to secure the future you deserve.

* Tapfuma is a Certified Financial Planner professional at Crue Invest.

PERSONAL FINANCE