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“We are seeing the long-term effects of structural disadvantages, including more frequent career breaks, and fewer opportunities to move into senior roles. Together, these factors gradually erode women’s financial momentum,” says Keri-Lee Edmond, Head of Business Intelligence at Old Mutual Corporate and lead author of the report. Those structural dynamics sit alongside measurable behavioural differences, the report finds.
Financial discipline alone is not enough
Both local and international research suggest that women in general manage money better than men. “Women tend to prioritise savings, credit health and long-term household needs, including education and healthcare,” she says. “These patterns reflect a purposeful approach to money, often shaped by caregiving responsibilities and long-term family commitments.”
But good money habits are not enough to overcome the structural barriers the research documents. “Even when women outperform men in financial discipline, the system does not convert that discipline into long-term equity,” Edmond says. “Unpaid care work, career breaks and part-time transitions are still treated as exceptions, rather than expected and accounted for in policy and retirement fund design.”
Need to Rethink Retirement Fund Design
Women are already showing financial leadership, but behaviour alone cannot close the retirement gap, says Edmond. “We need systems that reflect how women actually work and live,” she says. That means smarter defaults, contribution top-ups during caregiving, fair pay, and access to long-term investments.
Edmond’s broader 2025 research shows that small, practical changes, such as higher default contributions, improved annuity choices and delayed retirement, can result in a significant increase in retirement outcomes over time. “This is not theoretical. Well-designed defaults, especially when tailored to women’s working lives, are among the most effective tools employers can use to improve long-term retirement outcomes,” she says.
Raising the retirement age is particularly effective for women. “Women live longer than men. That means they need more income for more years,” Edmond explains. “Working even a few years longer gives women more time to contribute. It allows for more investment growth and reduces the years they need to draw down income. It is one of the most effective tools we have.”
While raising the retirement age can make a meaningful difference, Edmond says it should form part of a broader suite of improved design, from higher default contributions and better annuity choices to improved preservation and fair pay. Together, these practical steps can reshape retirement outcomes, particularly for women.
“We need to do more for South African females,” concludes Edmonds. “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.”
Visit our website at www.oldmutual.co.za/employeebenefits for more information about our employee benefit solutions. DM