“A girl should be two things: who and what she wants.” (Coco Chanel)

According to the International Labour Organization, women in South Africa earn, on average, between 23% and 35% less than men. Women are also more likely to take time out of the workforce or work part-time to take on caregiving responsibilities. This leads to even lower earnings, fewer years of contributions to their retirement savings and lower accumulated wealth.

At the same time, women typically live longer than men. Taken together, this means most women not only have fewer years in which to build wealth, but also more years in which that wealth must sustain them.

In short, women often have to do more, with less.

What this means in practice

In financial terms, this adds up to a stark reality: even if a woman saves at the same rate as a man, she is still likely to end up with less in retirement, and she will probably need to make it last longer. That is why women need to approach financial planning with clarity and intention.

They should also focus on building financial resilience around three key areas: emergency funding, planning for career gaps, and staying involved in shared finances.

• Build an emergency fund. Life is unpredictable. A cash cushion of three to six months’ expenses helps cover costs during a health crisis, job loss, or family emergency.
• Plan for career gaps. Whether for childcare, eldercare or personal reasons, breaks from the workforce can slow wealth-building. Know how you will negotiate these periods – and try to find a way to keep saving through them.
• Stay engaged in shared finances. Even if your partner handles day-to-day money matters, ensure you understand your household finances, have access to joint accounts, and know where important documents are kept.

Measuring your financial health

It’s also important to assess your own financial well-being. To do this, consider a few key areas:

• Are you saving enough? A good rule of thumb is to aim to save at least 15% of your income toward long-term goals, especially retirement.
• Are you invested appropriately? Keeping too much in cash erodes your purchasing power over time. Even small amounts invested in a tax-free savings account or retirement annuity can grow significantly through compounding.
• Do you have adequate protection? Life, disability and critical illness cover are vital, especially for single mothers or those who support extended families. Make sure your cover matches your needs.
• Are your goals clearly defined? Whether you want to fund a child’s education, travel the world, or retire early, you need a plan to get there.

Financial advice designed around you

Getting financial advice to help you through this journey is hugely beneficial. But be discerning about who you work with.

The financial industry has historically been male-oriented, with products, processes, and even language that tends to reflect men’s financial lives and preferences. As Caroline Criado Perez highlighted in her bestselling book Invisible Women, many systems in our world were designed with men in mind. Financial advice has not been exempt.

But a growing number of women are rejecting cookie-cutter financial solutions. Instead, they want advice that is truly personalised to their needs, goals and life stage. For example, a self-employed single mother will have very different financial requirements to a high-earning corporate executive or someone who is newly divorced.

So, when looking for a financial adviser, find someone who listens first. Rather than leading with products or performance charts, work with someone who takes the time to understand your priorities and vulnerabilities.

Returns matter, of course. But research shows that women tend to define investment success in terms of life outcomes, not benchmarks. A good adviser is therefore someone who will translate complex financial matters into clear steps that align with your real-life goals.

Building a personal financial strategy

Working with an adviser who understands you, here are five practical steps you can take to secure your financial future:

1. Start where you are. Even small savings matter. The most important part is getting started and being consistent.
2. Invest with a goal in mind. Are you saving for a home? A child’s education? Retirement? Knowing your goal will guide your investment choices.
3. Take risk where appropriate. Over the long term, equity investments tend to outperform cash. Don’t let fear stop you from investing.
4. Protect what you have. Ensure you have adequate insurance and an up-to-date will. This is especially important if others depend on you.
5. Find an adviser who understands you. Choose someone who listens and who respects your unique journey.

The bottom line

Women face particular economic realities that make their financial journeys different to men. They should therefore work with advisers who tailor a plan to their actual lives.

Whether you’re starting out in your career, raising children, managing a household, navigating divorce, or preparing for retirement, financial independence is possible. And it starts with understanding your own needs, having a clear plan, and taking ownership of your future.

To discuss your unique financial needs, speak to us.

To discuss your unique financial needs, speak to us.

Jason Yutar: +27 83 415 9603 or
Zaheera Mohammed: +27 82 775 1898 

Disclaimer: The information provided herein should not be used or relied on as professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact us for specific and detailed advice.

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