CASE STUDY: "I want to start, but I don't know how" - The retirement savings dilemma of a 24-year-old female

"Even though I'd like to start investing towards retirement, I'm not sure where or how to begin."

"I think universities should do more to prepare students for life after studying, not just work, but personal finances, tax, retirement - all of it," says Belle Oliver (24), who is juggling a full-time remote job for a Los Angeles-based media company while completing her second degree in nutritional medicine at the University of Pretoria.

"Even though I grew up in a financially stable home, financial literacy wasn't something I thought about until now," she says.

Belle is already doing a lot right. She lives independently, manages a monthly budget and puts money aside for emergencies and future goals like travel. But retirement savings? That feels like a black box. "I'd like to start investing for retirement, but I don't know where to begin."

Why Gen Z isn't as financially fearless as we think

While Gen Z can access countless financial tips online, the overload of (often conflicting) information can be more confusing than empowering.

A 2023 Wall Street Zen survey found that:

• 76% of Gen Z learn about personal finance through social media
• 90% are interested in investing, but 56% haven't started because they don't know how
• 83% say they've encountered misleading financial advice online

Belle is cautious: "I'm not on social media right now, but even when I was, I wouldn't have used it for financial advice."

When asked whether her friends talk about finances, she smiles: "Not really. We've never spoken about retirement. But I'm very independent. I like figuring things out myself."

Earning well, but outside the system

Belle is currently earning a US dollar salary as a contract worker. While exciting, it comes with added responsibilities, like managing her taxes and retirement contributions, which are not built into her pay as they would be in a South African cost-to-company structure.

According to StatsSA, this matters more for women: in 2021, 51.3% of men received employer retirement contributions, compared to just 45.8% of women - a clear sign of structural bias in the system.

A well-known stat is that less than 10% of South Africans are on track to retire comfortably. But according to a July 2025 analysis by Discovery Corporate and Employee Benefits (link), South African women are worse off, retiring with 21% less in retirement assets. Women's ability to enjoy a comfortable retirement is disproportionately affected by a combination of factors, including:

• The gender wage gap
• Caregiving or career breaks to have children
• Greater financial pressure because of financial dependents
• Longer life expectancy (and therefore more years in retirement)
• Lower financial confidence

Getting ahead of the retirement curve

Belle is in a unique position to start strong. She's young, independent, debt-free, earning well and has no dependents. But early retirement planning is critical to stay ahead, especially for women.

Here's why:

• The gender wage gap matters early: Discovery Corporate and Employee Benefits data shows that women aged 35 and younger earn 90c for every R1 earned by men - a 10% gap. But this gap widens significantly with age. By their late 40s, women earn as little as 61c to the R1, a 39% gap that severely impacts their lifetime earning potential and ability to save for retirement.

• Withdrawals hurt women more: Since the two-pot retirement system was implemented in September 2024, women are 1.3 times more likely than men to withdraw from their savings pot. They are also 1.8 times more likely to do so to pay for school fees or caregiving.

• Women live longer; two years on average: Their savings need to last longer, and they have fewer working years to build them up due to maternity leave, caregiving, or career interruptions.

A smart start for the long run

While Belle hasn't made her first retirement investment yet, she's open to learning and keen to take action. "I just need a starting point. I don't want a full-day seminar disguised as a networking event. I want simple, honest advice that speaks to where I am in life."

In the meantime, she's focused on finishing her degree, growing in her job, and hopefully travelling to LA to meet her colleagues - and squeeze in a side trip to Colombia while she's at it.

Why Belle's story matters

Belle's story may seem unique - young, global, ambitious - but her hesitation is common. Many women, especially younger ones, want to start saving but don't know where to begin. Part of addressing the gender retirement gap starts with making retirement accessible early on.

Because if Belle starts now, with the right guidance, her future self will thank her.

Know your retirement gap

At Discovery Corporate and Employee Benefits, we've made it simple to check if you're on track for retirement.

If you're a participating employer in our Umbrella Retirement Fund, encourage your employees to log into the Discovery app and take a look.

Not part of our umbrella fund yet? Chat to your financial adviser or email us at discoveryemployeebenefits@discovery.co.za.