South African women face a financial reality that’s both structural and compounding. According to a 2025 BEE Chamber analysis, women earn an estimated 23%-35% less than men for the same work, roughly R72.44 for every R100 earned by men. Add common career breaks for maternity leave or caregiving, plus the fact that women typically live longer, and the long-term maths can quickly tilt against them.
Lauren Jacobs, senior portfolio manager at Satrix, says the most powerful antidote is simple, and available to everyone: start investing early. “Investing is like planting a tree, not tossing a firework. You water it, you nurture it, and you give it time to grow. That time is the single greatest advantage any investor has, and when it comes to women, starting early is especially important because the headwinds are real.”
The compounding cost of career breaks
Women are more likely than men to step away from the workforce, whether for maternity leave, caregiving responsibilities or other life milestones. While these breaks are often necessary, they can carry a cost that extends far beyond the months or years spent out of the office.
“When women take breaks, it reduces their income, but it also reduces their contributions to any sort of long-term savings,” Jacobs explains. “It’s not only the loss of income, but also the loss of time to save for the future. Even missing a few years can have a very large impact on compound growth.”
Because breaks often happen in what should be peak earning years, Jacobs says the goal is to build momentum before life forces a pause. This creates a head start that can keep compounding, even when contributions slow down temporarily.
The pay gap makes every rand work harder
Lower earnings don’t just mean less money today. Over time, they translate into smaller contributions to retirement funds and investment accounts, and those smaller contributions can compound into very different outcomes over decades.
And because pay gaps and career breaks can reinforce each other, slowing salary progression and shrinking the ability to “catch up” later, starting earlier helps reduce pressure down the line. It gives women more of the one input money can’t buy back: time.
Living longer means funding more years
Longevity is a gift, but it changes the maths of retirement. Stats SA’s 2025 mid-year population estimates put life expectancy at 69.6 years for women and 64 years for men, a gap of nearly six years.
“The fact that you live longer increases your risk of outliving your savings, especially because your retirement balance is smaller to start with,” Jacobs says. “It’s not only living expenses, but also healthcare costs, it’s inflation, which are all working against you because you have to fund your life for many extra years.”
Practical steps to take control, without overcomplicating it
Jacobs’ approach is grounded in consistency; building habits that can survive real life.
- Be consistent: even small monthly contributions matter when they start early and are left to grow. “No matter the amount, even R100 a month, will help you build that habit and consistency,” she says. “And if you take a break, try not to take money out of your savings.”
- Use your tax-free savings account: in the 2026 budget speech, government increased the tax-free annual investment limit from R36,000 to R46,000, while the lifetime limit remains R500,000. “It’s a great savings vehicle because you are able to reap the full return on your capital, without paying tax on it,” Jacobs says.
- Avoid cashing out your retirement: if you can, don’t cash out retirement savings when leaving a corporate environment. Options like a preservation fund can keep savings within the retirement framework and maintain associated tax benefits.
- Keep investing even if you’re self-employed or between jobs: for women outside an employer pension scheme, a retirement annuity can help maintain momentum, with contributions generally tax-deductible (subject to applicable limits and individual circumstances) and growth accumulating tax-free inside the structure.
Jacobs adds that SatrixNOW provides access to Satrix ETFs and unit trusts, alongside tax-free investments and retirement annuities, helping investors start simply and build over time.
Own your financial journey
Beyond products and percentages, Jacobs says the most important shift is mindset: taking ownership of your financial future.
“You want to make sure that you’re going to be okay,” she says. “Build the discipline, invest in your financial literacy, and get comfortable enough with investing that you feel confident making the most of opportunities that will benefit you in the long term.”
Disclaimer
Satrix consists of the following authorised Financial Services Providers: Satrix Managers (RF) (Pty) Ltd and Satrix Investments (Pty) Ltd. The information does not constitute financial advice. While every effort has been made to ensure the reasonableness and accuracy of the information contained in this document (“the information”), the FSPs, their shareholders, subsidiaries, clients, agents, officers and employees do not make any representations or warranties regarding the accuracy or suitability of the information and shall not be held responsible and disclaim all liability for any loss, liability and damage whatsoever suffered as a result of or which may be attributable, directly or indirectly, to any use of or reliance upon the information.
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