New Old Mutual research shows that despite saving a greater portion of their salaries than men in the early stages of their careers, being disciplined savers, and managing debt better than men, women still retire with less.

The 2025 Old Mutual Corporate Retirement Fund Data and Financial Wellness Study shows that women are saving a greater proportion of their salary, particularly in the younger age categories, as demonstrated in the graph below.

However, from age 41 onwards, the data show that men begin to lead in retirement outcomes in several age cohorts, particularly in the later stages of their careers.

According to Keri-lee Edmond, Head of Business Intelligence at Old Mutual Corporate and lead author of the study, the reasons for this include that women earn, on average, 15% less than men (R24 722 vs R21 528), take more career breaks, have fewer opportunities to move into senior roles, and face retirement structures that were not designed for modern, non-linear careers. “Together, these factors gradually erode women’s financial momentum,” she says.

A closer look at the salary statistics, based on nearly 500 000 umbrella fund members, shows that men’s median salary is also higher (R14 496 vs R13 256) and that while women represent 47% of the cohort in the lowest salary band, they represent 34% of the cohort in the highest band, suggesting lower access to top salary bands.

The study also confirms that women outpace men in key debt behaviours. Despite greater caregiving and household responsibilities, women are less likely to default on debt and have higher average credit scores than men.

Edmond points out that women are central to the country's economic resilience. According to Statistics South Africa (2024), 42,1% of households are headed by women, and 7,5 million women are the main or sole income earners in their families. In addition, women are also responsible for the majority of unpaid care work. According to the World Bank (2024), women in sub-Saharan Africa spend more than four hours per day on unpaid domestic and care work – double the time spent by men.

Women also exhibit different spending habits than men. Global studies, including those from UN Women and McKinsey, confirm that women reinvest up to 90% of their income into their families and communities, compared to 30 to 50% of men.

Yet, these disciplined behaviours are not being rewarded over time.

“While women are saving with discipline, the next challenge is ensuring those savings are invested to grow,” says Edmond.

According to Edmond, women often place their capital in low-return vehicles such as basic savings accounts or stokvels, which are not sufficient for compound wealth generation over decades.

Employers and intermediaries have a crucial role to play in supporting women to invest for strong real returns that match their long-term financial goals.

How to empower women to invest

• Build smarter defaults: Default contribution and investment strategies should accommodate career breaks and part-time transitions for women.

• Financial advice tailored to women’s life stages: Provide guidance at key turning points, like maternity, career breaks, or job and life changes.

• Leverage existing networks: Integrate formal investment education and tools into trusted social groups like stokvels to leverage the power of these networks.

• Use workplaces as launchpads: Offer investment onboarding sessions, payroll-based contributions, and financial literacy initiatives for women.

For more strategies to support women, download the full report here.

“We need to do more for South African women,” says Edmond. “If we remove the structural obstacles and give women the tools they need, they will not just retire better, they will lead South Africa’s next wave of economic progress.”