Beyond the pay gap, systemic bias, financial pressures and family caregiving commitments compound to create a deeper retirement crisis for women.
It’s been long recognised that fewer than10% of South Africans retire with enough money to enjoy a comfortable standard of living. And now, new data from Discovery Corporate and Employee Benefits reveals that South African women are worse off than men, retiring with 21% less in retirement assets.
This insight comes from a July 2025 analysis of contribution behaviour, earning patterns, fund choices and family dynamics across Discovery Corporate and Employee Benefits’ umbrella funds.
“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.”
Key findings from the analysis include:
- Women have 21% less than men in pension and provident fund savings balances.
- On average, women earn 76 cents for every R1 men earn, resulting in a 24% pay gap. This gap widens to 39% among older women, possibly a result of fewer promotion opportunities.
- Women’s careers are deeply impacted by unequal caregiving responsibilities. According to the 2021 Household Survey by Statistics South Africa (Stats SA), 43,4% of children live only with their mothers, compared to just 3,9% with their fathers. This places 10-times the financial burden on women, who need higher net pay to support their families or accept lower-paying jobs that offer more flexibility in childcare.
- Women are 1,3-times more likely to withdraw from their retirement savings pots, from the two-pot retirement system introduced in September 2024. They are also 80% more likely to use those withdrawals for school fees.
- Women live longer. According to Discovery’s internal life and health expectancy model, a healthy 65-year-old woman will outlive a healthy 65-year-old man by two years. As a result, the same retirement lump sum must stretch over a longer lifespan, reducing monthly income.
- From age 55, women are 25% more likely than men to invest in more conservatively managed balanced funds, potentially limiting investment growth at the critical years leading up to retirement.
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Widening pay gap
Despite these challenges, the data also shows that women are 1,2-times more likely to contribute above their employer’s default rate, which shows a strong intention to save for the future even under greater financial pressure.
However, these dynamics compounded over time, have created a crisis for millions of women as they near retirement.
“The gender pay gap is just the starting point,” Pitje explains. “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.
“The data reflects clear structural patterns and calls for benefit designs that respond to real life.”
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Greater caregiving demands, more conservative investment choices after 55, and higher withdrawal rates shape retirement outcomes for women (Source: Discovery Corporate and Employee Benefits)
Employers have a unique opportunity
With most South Africans relying on employer-provided funds to save for retirement, employers are in a powerful position to improve long-term financial outcomes for both men and women.
“Retirement benefits shape financial outcomes for millions of South Africans, but they are still designed and delivered as if one size fits all,” says Pitje. “Employers have the power and responsibility to change that. By treating benefits as a lever for equity, not just compliance, they can play a critical role in ensuring we close the gap.”
Pitje advocates for a shift in how benefits are designed and communicated, including:
- Stronger financial education and digital tools that empower employees – men and women – to simply understand what they have, whether they’re on track, and what they could do to close their gaps.
- Flexible contribution pathways that adapt to salary growth and reflect the realities of career breaks, caregiving and part-time work. Once aware, members show a strong desire to become more financially ready. Members of the Discovery fund who are more engaged and aware of their boost incentives preserve their assets at much higher rates – almost one in every two members with more incentives compared to industry rates of between 10% and 20%.
- More inclusive support structures to help employees manage financial stress, debt, and the challenges of the “sandwich generation”, who are responsible for their children and parents, as well as extended family.
“Employers are uniquely placed to change outcomes at scale,” adds Pitje. “They can influence how people save, how they access financial advice and how confident they feel about their financial futures.”