New data from Discovery Corporate and Employee Benefits reveals that South African women face significant retirement savings challenges, retiring with 21% less than men.
Image: IOL Ron AI
Fewer than 10% of South Africans retire with enough money to maintain a comfortable standard of living, according to news data from Discovery Corporate and Employee Benefits.
According to Discovery, this figure has long raised alarm among financial experts and policymakers.
However, new data paints an even starker picture for women, who retire with 21% less in savings than their male counterparts.
This disparity was revealed in a July 2025 analysis conducted by Discovery Corporate and Employee Benefits, which examined contribution behaviour, income levels, fund selection, and family dynamics across its umbrella retirement funds.
Nonku Pitje, CEO of Discovery Corporate and Employee Benefits, says that with August being National Women’s Month in South Africa, they took a deep dive into the retirement data across its umbrella funds.
"Our analysis shows that women are definitely saving and actively contributing towards their retirement. Yet, the system still works against them.
“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.”
The findings point to several factors that compound the retirement gap for South African women:
Discovery reveals that, despite structural disadvantages, the analysis also shows resilience: women are 1.2 times more likely to contribute above the employer’s default rate, signalling a strong intent to secure their financial futures.
But Pitje warns that good intentions alone cannot close the gap.
“The gender pay gap is just the starting point. 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," she says.
Discovery says given that most South Africans depend on employer-sponsored funds to save for retirement, the role of the workplace is more critical than ever.
“Retirement benefits shape financial outcomes for millions of South Africans, but they are still designed and delivered as if one size fits all.
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 says.
Pitje calls for urgent change in benefit structures and communication strategies, advocating for:
“Employers are uniquely placed to change outcomes at scale. They can influence how people save, how they access financial advice, and how confident they feel about their financial futures.
“Ultimately, as employee benefits providers, how we design benefits must evolve. As Discovery Corporate and Employee Benefits, we’ve thought very hard about building more intelligent, inclusive benefits informed by behavioural insight. Even small structural changes, from flexible contribution models to targeted education, can make a significant difference, especially for women," she says.
PERSONAL FINANCE