Lauren Jacobs, Senior Portfolio Manager at Satrix, highlights some of the challenges faced by women on their wealth creation journey – and what to do about them.

South African women face a financial reality that is both structural and compounding. According to a 2025 BEE Chamber analysis, women in this country earn an estimated 23% to 35% less than men for the same work; roughly R72.44 for every R100 earned by a male counterpart. Add the career breaks that often come with maternity leave or caregiving, along with the fact that women typically live longer, and the long-term maths starts tilting against us quickly.

The most powerful response is simple and available to everyone: start early. Investing is like planting a tree ‒ you water it, nurture it and give it time to grow. Time is the single greatest advantage any investor has, and for women, starting early matters even more 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 stretches far beyond the months or years spent out of the office.

When women take breaks, it reduces not only their income, but also their contributions to long-term savings. Even a few missed years can have a meaningful effect on compound growth. And because these breaks often happen during what could be peak earning years, the long-term impact can be disproportionate.

That is why building momentum early matters so much. A head start gives your money more time to keep compounding, even when life temporarily slows your ability to contribute.

The pay gap makes every rand work harder

Lower earnings do not just mean less money today. Over time, it means reduced contributions to retirement funds and investment accounts, and those smaller contributions can lead to very different outcomes over decades.

Career breaks and pay gaps also reinforce each other. Together, they can slow salary progression and shrink the ability to catch up later. Starting earlier does not remove that pressure entirely, but it does help reduce it by giving women more of the one input money cannot buy back: time.

Longevity changes the maths

Living longer is a gift, but it changes the arithmetic of retirement. Statistics South Africa’s 2025 mid-year population estimates put life expectancy at 69.6 years for women and 64.0 years for men – a gap of nearly six years.

Those extra years increase the risk of outliving your savings, especially if you start retirement with less set aside. And it is not only day-to-day living costs that continue for longer; healthcare costs and inflation are also working against you over that extended period.

What you can do without overcomplicating it

Take an approach that is grounded in consistency: building habits that can survive real life.

The first step is simply to stay consistent. Every monthly contribution matters when you start early and leave that money to grow. No matter the amount, even R100 a month can help build the habit. If you do need to pause contributions for a while, try not to withdraw from your savings.

Second, make use of your tax-free savings account. In the 2026 Budget Speech, government increased the annual investment limit from R36 000 to R46 000, while the lifetime limit remains R500 000. It is a powerful vehicle because you receive the full return on your capital without paying tax on that growth.

Third, where possible, try to preserve your retirement savings when leaving a corporate environment. Options like a preservation fund can keep your savings within the retirement framework and preserve the associated tax benefits.

And for women outside an employer pension scheme, whether self-employed or between jobs, a retirement annuity can help maintain momentum. Contributions are generally tax-deductible, subject to applicable limits and individual circumstances, and growth accumulates tax-free within the structure.

The real shift is in mindset

Platforms like SatrixNow make it possible to access ETFs, tax-free investments and retirement annuities in one place. Accessing these options is often easier than people assume.

But beyond products and percentages, the real shift is personal. It is about taking ownership of your financial future, building discipline, and investing in your financial literacy. The more comfortable you become with investing, the more confident you can feel about making decisions that will benefit you over the long term.

The gap is real, but it is not destiny. The earlier you start, the more power you have over your outcome.

This article was first published here.

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.