How South African women can close the retirement savings gap

South Africans have a retirement savings problem. Research shows that only six out of every 100 South Africans will be able to retire comfortably. On top of that, Deloitte reports our national savings rate is just 0.5%, far lower than most emerging economies. In other words, many of us are heading towards retirement with too little put away.

For women, the challenge is compounded by the gender pay gap. South African women typically earn 23% to 35% less than men for the same work, all while juggling similar bills, debt, and family responsibilities.

It’s a double hit. You’re working with less income from the start, which makes it harder to save, but you also need your retirement savings to stretch further because women tend to live longer than men.

So, how can women start turning the tide? Here’s a practical, doable plan to help you close the gap and build a stronger retirement future.

Make retirement saving non-negotiable: Treat your future self like you’d treat an essential household bill. Building your retirement fund is a lifelong project. The earlier you start, the more time your money has to grow. Even if it’s tough now, commit to making saving for your retirement part of your monthly budget.

Increase your contributions; even a little helps: The biggest reason people fall short at retirement is simple: they didn’t save enough during their working years. Review your budget line-by-line and see where you can trim back. Even a small increase in your monthly contributions today can add up to a significant boost in 20 years.

Audit your expenses and cut the waste: Be honest about where your money goes. Many of us have subscriptions we never use or habits that quietly drain cash. By cancelling what you don’t need or swapping to cheaper options, you can redirect that money into your retirement fund. Your future self will thank you.

Take the driver’s seat in family finances: Far too often, women leave the bigger money decisions to their spouse or partner. This is a mistake: know where the money comes from, where it’s going, and how much is being saved. Always know the current state of your financial affairs and review your insurance arrangements and retirement benefits at least annually. Financial awareness is power – and protection.

Get expert advice: Putting money away is a great start, but a qualified financial adviser can help you make it work harder. They’ll assess your goals, suggest tax-smart strategies, and ensure your investments are right for your timeline and risk tolerance.

Maximise tax efficiency: The SA Revenue Service (Sars) gives you an annual gift of a tax deduction on your retirement funding contributions. Use it, don’t lose it! For example, if you earn R270,000 per annum and you contribute 10% (R27,5000) to a retirement fund per annum, you could get back R7,150 (26%) when you submit your annual tax return the following year. Or if you do this via a payroll deduction, you get it back immediately. Therefore, for every R1,000 you contribute, it’s the same as Sars contributing R260 for you and you contributing only R740. But the full R1,000 plus investment growth is credited to your retirement fund for when you ultimately retire.

Adapt according to your life stage: We know that there is a time when we are all particularly financially stretched, which is when we have kids to support. It’s OK to reduce (but not stop!!) your contributions to a retirement fund during this time. However, when you are through the chaos, you have to “pay back the money” and really go all in with maximising your contributions in your last 15 years of working to make a difference.

The reality check

Many of us imagine retirement as a time to relax, but without enough savings, it can bring financial stress instead. For women, especially, retiring earlier than expected or without a plan can mean relying on relatives to make ends meet. A well-structured retirement plan can reduce that risk and give you more independence in later life. Closing the gender gap in retirement savings isn’t just about numbers. It’s about giving yourself the freedom to live your later years on your own terms.

* Huggett-Henchie is the consulting actuary at financial advisory firm NMG Benefits.

PERSONAL FINANCE