Keri-Lee Edmond, Head of Business Intelligence at Old Mutual Corporate

Equal Pay Day highlights the gender pay gap by showing how much longer into the year women must work to earn the same as men did the year before. New Old Mutual research shows that this inequality extends far beyond monthly salaries. Young South African women are saving more and managing debt better than men in the early stages of their careers, yet they still retire with less.

Old Mutual Corporate’s 2025 Retirement Fund Data and Financial Wellness Study shows that from around age 40, women’s savings trajectories begin to slow, not because of poor financial choices but because they earn on average 15% less than men, take more career breaks, and face retirement fund structures that were never designed for modern, non-linear careers.

“We are seeing the long-term effects of structural disadvantages, including lower lifetime earnings, 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.

Based on nearly 500,000 umbrella fund members, the 2025 analysis confirms that while women start strong, their early gains taper off over time. “We are not seeing a shortfall in behaviour,” says Edmond. “Women are still paid less. But we do more with it. Women are saving a higher proportion of their income and making financial choices that sustain households, all while earning less and absorbing the bulk of unpaid care responsibilities.”

Financial discipline alone is not enough

Edmond notes that both local and international research, including internal findings, highlights behavioural differences in how men and women manage money. “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.”

Still, these disciplined behaviours are not being rewarded over time. The report points to a combination of lower lifetime earnings, interrupted career paths, and underrepresentation in leadership roles as key drivers of unequal outcomes. Many women also continue to save in low-return vehicles, such as basic savings accounts or stokvels, which do not provide the long-term capital growth needed to secure retirement.

“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.”