Women wear many hats in South African households – but are they truly covered financially?

Queen Malobane

Gone are the days when the duties of breadwinner and financial provider fall squarely on the shoulders of men. Today, many women are at the head of households or are equal breadwinners sharing or shouldering financial responsibilities. Juggling many obligations can mean that some women neglect their own financial planning, but this is just as important to manage among other responsibilities.

According to the most recent report by Statista, just over 42% of South African households are headed by women, which means that at least 7.5 million women in South Africa are the sole or main income earners within their households. For Queen Malobane, Provincial General Manager at Metropolitan, these findings are a clear sign that many women across the country are balancing the challenges of raising their children, supporting their partners and driving economic growth. 

“However, to realise their full potential and build long-lasting legacies, they need to take financial planning more seriously. This includes considering the years of leisure many women look forward to at retirement age and being as prepared for the unexpected as possible. Taking time to plan how to make your money work for you and your loved ones is one of the best acts of self-care you can practice,” she says. 

Saving for life after employment

Good financial planning is equally about what is happening today as it is about what will happen tomorrow. The future is a big unknown variable and is full of twists and turns, which is why saving regularly and consistently for retirement is a wise move. Saving for retirement is one of the most effective ways to ensure that you can maintain your lifestyle when you are no longer working. 

Concerning is the recently released 10X Investments Retirement Reality Report[1] by Brand Atlas, that states as little as 6% of the local population are on track to retiring comfortably. 

Women have unique needs as mothers, daughters and community members, making it essential for them to take proactive steps in their retirement planning. Women often take time off work to care for children or elderly family members, which can result in fewer years of earning and contributing to retirement savings. 

Another reason why developing diligent retirement saving habits is essential is that according to Stats SA, women in South Africa typically outlive men by over 5 years on average[2]. What this means is that many married women or those in relationships, will outlive their partners and by extension, will need to take responsibility for paying the bills, settling any debt, paying for living essentials and taking care of children and other family members. 

“By prioritising retirement saving, women can make great inroads into becoming financially independent and secure, regardless of life’s uncertainties. They could do this through products like the Metropolitan Retirement Annuity (RA), which enables employees to save for their retirement independently from their employers. There is also the added benefit that having an RA will protect your savings from creditors,” says Malobane. 

Life cover as a safety net for family

A solid financial plan should also include life cover. With modern women taking on more responsibility, providing financial assistance to family and raising children as single mothers, this reality has changed significantly. 

Having the right amount of life cover can protect families from the financial burden of funeral costs, outstanding debts, and everyday living expenses. Life cover is therefore a way for women to help their dependents maintain their quality of life and safeguard their future. In the long-term, the rewards of this forward-thinking approach are peace of mind for women and their dependents, who can rest assured knowing that they will be taken care of no matter what. 

As Malobane concludes: “When it comes to planning your financial future, the earlier you start, the better. You don’t need to wait until you’re older or have secured your dream job – saving for retirement and taking out life cover is something you should do as soon as you start earning an income. With time, diligence and a healthy dose of patience, the financial rewards could be highly beneficial.”

[1] https://www.fanews.co.za/article/retirement/1357/general/1358/majority-of-cash-strapped-south-africans-unable-to-retire-comfortably/38729#:~:text=More%20than%20double%20(11%25%20versus,versus%2014%25%20of%20women).

[2] https://www.gov.za/about-sa/people-south-africa