Fran Troskei, Manager Research Analyst at PPS Investments

A new investment agenda for women

A women’s investment journey beyond working life is achievable by understanding what women need and when they need it.

The jaded response would be that at least half of the population does not know. A more appropriate question, however, would be: When do we want it? Unlike in the case of most children, the immediate response shouldn’t be “now”. The truth is that we want it when we truly need it. And by “it,” I mean wealth. Wealth that can sustain us beyond our working lives.

Why the books don’t balance

In South Africa, the latest data from Stats SA (Mid-Year Population Estimates, 2025) suggests that women live on average, 5.5 years longer than their male counterparts, reaching roughly age 70. While this estimate hides the variation across ethnic and socio-economic groups, the crux of the matter remains the same: Women typically live longer than men. This is by no means a revelation and has been well-documented globally. Yet the investment industry, including asset managers and independent financial advisors, often seems to overlook this. And where women do have the means to invest for retirement (a privilege in itself), are we investing accordingly?

In the balance sheet of life, as in the balance sheet of a business, our assets need to cover our liabilities. In this case, the asset is the wealth we accumulate during our working lives. The liability can be viewed as the basic cost of living. But what about our future liabilities? Let’s call this a “longevity liability”. Who would have thought that living a longer life would be viewed as a liability? Nonetheless, it is a crucial consideration when it comes to how we manage our wealth.

Typically, people starting out on their investment journey follow a more aggressive investment strategy. This may be the result of their own risk-appetite, or a case of “risk it for the biscuit.” Then there is also something called the “rule of 100”: subtract your age from 100 and invest that % of your portfolio in riskier assets. However, this may not be the best idea. Ideally, an aggressive strategy is backed by research or sound advice from an investment professional. Interestingly, this phase often associated with younger people, can in fact stretch from ages 30 to 50. For women, with retirement in South Africa commonly set at 60, this aggressive strategy arguably needs to extend beyond age 50. Assets and wealth accumulated in this growth phase need to stretch further. Motherhood at times sees women step out of the working environment, shortening the growth phase, and making it even more difficult to match the longevity liability.

How do we get to where we need to be

While the broader investment industry acknowledges the reality of the longevity risk, there is still a long way to go. When it comes to balancing the books, as with most things, education about the investment journey and how it differs for women is important. Gaining insight into where we are heading, helps us better plan the route. While financial education may not be a core responsibility of an asset manager or advisor, it is an area where we can and should step up to the plate. Another area worth exploring (already taken up by the insurance industry) could lie in designing more tailored solutions to better suite women’s needs. However we set about balancing the books, it is critical that we ensure that women can sustain themselves beyond their working lives. This can only be achieved by understanding what women need and when they need it.