"I cashed out my pension in my early 30s, but I'm catching up"

"Early withdrawals eat into your money's ability to work for you; in the process, you rob your future self. I've had to play catch-up because I only started focusing on retirement in my early 30s." - *Viwe Nombila, Impact Strategist

"Even though I studied financial markets and economics, I didn't fully understand personal finance when I started working," says *Viwe Nombila (38), an Impact Strategist.

"After leaving my first job, I cashed out my pension to pay off debt instead of transferring it, and I regret that decision to this day."

Viwe began working at 26. Now, 12 years later, she has a wealth of experience across consulting, mining, investor relations, non-profits, and entrepreneurship. But her retirement savings journey has been far from smooth.

"I've been retrenched twice," she says. "The first time, I was unemployed for longer than expected and exhausted my savings. I cashed out my pension to avoid losing my home, and I wasn't ready to downscale or rent it out.

"In hindsight, it was a mistake. The second time I was retrenched, I refused to make the same error."

Retirement savings: The broader picture

Viwe's story echoes a worrying trend among South African women. According to a recent analysis (link) by Discovery Corporate and Employee Benefits:

• Women retire with 21% less in retirement assets than men
• Under the two-pot retirement system launched in September 2024, women are 3 times more likely than men to make withdrawals from their retirement savings pot
• Women are 8 times more likely to withdraw retirement savings to cover school fees

The reasons for this gender retirement gap are structural and persist throughout a woman's life:

• Earnings gap: Women earn, on average, 76 cents to every R1 earned by men - a 24% gap
• Widening with age: This drops to 61 cents for women in their late 60s, creating a 39% earnings gap.
• Longevity matters: Women also live longer - two years on average than men - meaning they need more in retirement, not less.

"I've had to rewire how I think about money"

Viwe admits her early missteps came from a lack of financial literacy. "I lived beyond my means in my 20s and racked up a lot of debt. Thankfully, I've since paid it off, but it took discipline and a lot of learning."

Now, she takes a much more intentional approach to budgeting and saving. "I use apps to track my spending. When I considered upgrading my phone contract, I realised I'd need to cut costs elsewhere, so I gave up my weekly salon visits and now cut my own hair."

Her Discovery financial adviser, David Cook, has been instrumental in reshaping her approach. "He helped me understand the long-term impact of my past decisions. Based on my current age and goals, he calculated a retirement shortfall of R4,000 to R5,000 a month. That was a wake-up call."

"I'm working towards closing that gap, and I'm committed to making up the lost ground."

From setback to strategy: rebuilding her financial future

As an entrepreneur, Viwe no longer has access to employer-funded retirement benefits. Her strategy now includes:

• A preservation fund for past contributions
• A retirement annuity for long-term savings
• An emergency fund
• A tax-free savings account
• Other goal-based investments for travel and family commitments

"The only debt I carry now is my bond and car, which I consider 'good debt'. I've learned to assign every rand a purpose."

Viwe also continues to build her financial knowledge. "I read books, listen to podcasts, and follow credible voices on TikTok and YouTube. But when I'm unsure, especially about my portfolio, I ask David. He's patient and thorough, and he explains financial products in ways I can actually understand."

Advice for others: don't cash out - catch up

"The biggest lesson I've learned? You can't recover compound interest. Once time has passed, that growth is gone."

Viwe encourages other women to start early, even if it's a small amount. "Pay yourself first. Don't cash out your pension. Live below your means. And if you fall on hard times, cut back quickly. Move in with family if you must, there's no shame in that."

Research backs this mindset: Discovery Corporate and Employee Benefits data (link) shows that women are 1.2 times more likely to contribute above the default rate, even as they face greater financial pressures.

"Women are resilient," Viwe says. "But we need to give ourselves the tools - and the time - to build a future we can retire into."

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.

*Name changed to protect the subject's identity.