The gender pension gap

Published on 20th August, 2025 at 12:16 pm

Whether you’re a woman who’s planning for your own retirement, or you’re someone who wants to support female friends and family members along their savings journey, one thing is clear: a gender pension gap exists – and it won’t close itself.

To illustrate, women in South Africa live an average of five to six years longer than men. “In that lifetime, many women are also earning less than their male counterparts, some can’t afford to improve their education to access higher-paying permanent employment, many are taking career breaks to care for children or elders, and others are absorbing life-shocks like divorce and widowhood,” says Oletilwe Ramashala, Head: Business Development & Special Projects at Sanlam Corporate.

“All these things directly impact the amount of assets they’ll be able to retire with. The result? The inability to retire with confidence – and because we know it, it causes a quiet, deep anxiety that many women live with daily.”

46% of women believe they will never have enough saved to retire, while only 8% of female fund members feel very confident they’ll be able to retire comfortably.
2025 Sanlam Benchmarks Survey

When it comes to retiring with confidence, women need to get smarter about the state of their financial futures. It’s time for all women – young and ageing – to start pursuing their retirement dreams realistically. Retiring with confidence is possible – you just have to plan for it. Do you know what at what age you will retire? Our Age of Confidence calculator can help you see where you stand in terms of your true retirement age.

The Benchmark reality: retirement maths just isn’t ‘mathing’

“Women need to be empowered so they’re not on the back foot when it comes to retirement planning and finances,” says Karen Wentzel, Head of Annuities at Sanlam Corporate.

“The data shows that nearly half of all marriages in South Africa end before the 10-year mark, with the average age of divorce being 40. In 55% of these cases, children under 18 are involved, adding further financial pressure.”

At retirement, a person typically needs savings of at least 15 times their annual salary. “If a woman starts saving at 40, she’d need to put away 40% of her salary to reach that target,” warns Wentzel. “For single mothers, divorcees or widows, that target can be virtually impossible. If women don’t prioritise retirement savings early on, the cost of catching up later is almost impossible to bear.”

Stop waiting for a crisis to take control

So while we can’t control every curveball life throws at us, we can plan for them. “Women need to be equipped with tools and information to build financial independence long before a life shock hits, which is where we, as trustees and advisers, can help,” Ramashala says. “Financial independence isn’t a luxury – it’s a necessity – and we need to empower women to be proactive investors.”

Here are three areas every woman should focus on:

• 1. Invest: Start financial planning early and independently
  It’s important to have investments and retirement savings in your name, whether you’re married or not. Get the right advice first; then rely on compound interest to make your portfolio grow.
• 2. Save: Build an emergency fund + preserve your retirement savings
  Aim to save three to six months’ salary in a tax-free savings account or unit trust. This helps during transitions like job loss or divorce. Try to preserve your retirement money at all costs.
• 3. Plan: Consider the 4Ds: death, disability, divorce, dependency
  These life events trigger major financial shifts, so having a plan cushions the blow. So whether you’re in a traditional partnership or are in a same-sex union, ensure your financial plan reflects that extra decade (or more) of living expenses – also find out exactly what provisions your spouse has made for you.