A Global Gender Gap report for 2022 by financial services group Alexander Forbes revealed it will take 132 years to close the global gender gap.
According to the report, South Africa is ranked 20th out of 146 countries and 92 for economic participation and opportunities.
Alexander Forbes suggests both women and men have the same needs when it comes to planning for their future; these include:
- getting credit or financing for business
- managing debt
- needing long-term care
- outliving their money
- not saving or investing well enough
Closing the gender pay gap
Unequal pay for similar work – even in retirement
Men and women who do the same work do not get the same salary – the report cited that men still get paid more in South Africa.
In the category of wage equity for similar work, SA ranked number 123 out of 146 countries.
According to Alexander Forbes’ Member Insights 2021 report, income during retirement is even more unequal.
Head of corporate consulting strategy at Alexander Forbes, Belinda Sullivan, said men usually retire on 35% of their final salary, while women only fall within 9% to 26% of their salary.
Gender pension gap extends the gender income gap
According to Statistics South Africa life expectancy data for 2021, women outlive men – 64.6 years compared to 59.3 years for men.
This shows that if women earned the same as men, they would have enough money to save and spend more years in retirement.
“Consequently, you need a higher level of savings than men to achieve the same yearly income throughout your retirement years,” said Sullivan.
Taking career breaks to care for your family
Women are employed for fewer years than men, largely due to various factors including starting a family and caring for ageing parents, which results in lower savings.
Alexander Forbes says women might also cash in on their savings to make up for the loss of income, which reduces long-term compound savings.
Working flexible jobs, such as freelancing
While freelancing may have little to no benefits, you need to evaluate your options and plan for the future.
Saving smaller amounts each month
Since women earn less than men, they are likely to save less every month. According to Alexander Forbes, you need to:
- recognise that you have unique financial challenges as a woman and use support and guidance to manage these
- start saving as early and for as long as possible
- balance needs and debt over short and long periods
- understand options available if you stop work for a while and how to keep money invested for your future
- consider different investments for specific needs
- be active in making financial decisions
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