Shining A Spotlight On Women’s Unique Financial Challenges

Nearly one-third of working women in South Africa lack retirement savings, facing unique financial hurdles that deeply affect their economic stability. The persistent gender pay gap and the added responsibilities of managing households create significant barriers to financial growth.

This is according to Charnel Collins, CEO of National Debt Advisors, who said women in South Africa have long faced economic disadvantages and it was important to address the unique financial challenges faced by women as we commemorate Women’s Month.

According to Stats SA while unemployment rates are generally high amongst all genders in the country statistics have shown higher unemployment rates among women compared to men. Moreover, only 50.7% of women participate in the workforce, compared to 63.2% of men. Women are also more reliant on grants and remittances, while men often have business income and salaries.

“Women often struggle financially due to deep-rooted systemic issues,” explains Collins. “In South Africa, over 42% of households are led by women. This dual role of earning income and managing household responsibilities adds significant financial pressure. The additional burden of unpaid work, like cooking, cleaning, and caregiving, further complicates financial management.”

Collins adds, A woman’s work is never done. Women spend countless hours each year on unpaid tasks that are crucial for the smooth running of households and communities, yet these efforts often go unrecognised and undervalued.

Collins highlights several key financial challenges women face:

1. The Gender Pay Gap:Despite ongoing efforts to address wage disparities, women still earn less than men. This gap affects their ability to save for retirement and build wealth, leading to lower pension benefits and greater financial insecurity in later years.
2. Longevity and Retirement Planning:Women generally live longer than men, which means they need to plan for longer retirement periods. To avoid financial difficulties in their later years, women must save more and manage their finances carefully.
3. Overlapping Duties:Women often shoulder the bulk of unpaid household and caregiving responsibilities. This can limit their career growth and earnings potential, contributing to financial instability.
4. Inadequate Financial Literacy:Many women have not had the chance to learn essential financial skills. This lack of knowledge can lead to poor money management, higher debt, and lower confidence in making financial decisions.
5. Fear of Ambition:Social expectations often discourage women from pursuing ambitious career goals or negotiating for better pay. This reluctance can hinder their financial progress and limit economic opportunities.

“To tackle these challenges, it’s crucial to adopt a strategic approach tailored to your needs,” says Collins. “Enhancing your financial literacy allows you to make informed decisions about budgeting, saving, and investing. Start saving early and use compound interest to build a solid retirement fund. Creating a realistic budget will help you manage spending, cut unnecessary costs, and save for future goals, ensuring long-term financial stability.”