Financial challenges facing women and how to overcome them

By Leslie Greyling*.Women face distinct financial hurdles, so it’s not surprising that survey data from Money Stress Tracker reveals that South African women are 10-15% more financially stressed than men. With overall financial anxiety increasing notable as women shoulder heavier burdens across home life, personal health, and workplace demands.Key financial challenges: Cumulative wealth gap: Earning less than men on average over a career means you have lower saving and investment potential. Career interruptions: Taking time off work for maternity or family care reduces women’s cumulative income and retirement fund contributions and growth.Longevity risk: Living longer means your retirement nest egg must stretch across more years.Lower investment confidence: In general women have a conservative investment approach, with a preference to leave their capital and savings in money-market or fixed deposit accounts.Caregiving penalty: the financial burden to support dependent children and ageing parents.But women are becoming more self-assured in their financial decision making. The proportion of women who feel confident in their savings and investment decisions has increased steadily over the last few years. This trend is strongest among younger females and those earning higher incomes. The use of financial advisers is also rising, with 45% of women now seeking professional advice compared with 40% in 2023.Some common mistakes and how to overcome them: Delaying investing: Start early, even with a small amount. Time in the market is often more important than trying to find the perfect moment to invest.Underestimating retirement needs: Contribute consistently to retirement accounts and increase contributions whenever your income grows.Carrying high-interest debt: Prioritise paying off the highest-interest debt first while continuing minimum payments on personal loans and/or credit cards.Not having an emergency fund: Aim to save three to six months of essential living expenses, starting with small, regular contributions. Consider building additional income stream through freelancing, or a small sideline business.Avoiding financial conversations: Stay involved in budgeting, investments, taxes, insurance, and long-term planning, regardless of who manages day-to-day finances.Failing to have your own clear financial goals: Set SMART (Specific, Measurable, Achievable, Relevant, Time-bound) goals and review your progress regularly.Not protecting your Income: Review your life, disability, and income protection insurance cover, and keep beneficiary information up to date.Building wealth isn't about perfection—it's about making consistent, informed decisions over time. Starting early, staying engaged with your finances, and regularly reviewing your financial plan can have a significant impact on long-term financial security.Top of Form.*Leslie Greyling, Registered Financial Planner™, is a financial adviser at Brenthurst Wealth, Fourways leslie@brenthurstwealth.co.za

Financial challenges facing women and how to overcome them

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