CASE STUDY: "I know I have a retirement shortfall, but I can't afford to fix it yet"

"I don't consider myself financially savvy. I don't know how to multiply my money in stocks or bonds. I haven't educated myself about that yet. The only reason I've delved into property is because my mom wasn't shy about it. I saw her example, so I followed in her footsteps." - *Lesego Jacobs, 41, entrepreneur

"I'm very aware of my retirement shortfall," says *Lesego Jacobs (41), a professional speaker, coach and founder of two creative agencies. "Shortly after my first child was born nine years ago, I had a sobering conversation with the woman who's now my financial adviser. She asked me basic questions about my future and finances, and I couldn't answer them."

That conversation prompted Lesego to act. She started a retirement annuity and began contributing regularly. When her second child was born, she increased her contributions substantially. But according to her adviser, she's still not contributing enough to meet her long-term retirement goals.

"I increased my contributions over time - almost by half - but I'm still not where I need to be. According to my adviser's projections, I should be contributing much more than I can currently afford."

Juggling contributions with inconsistent income

As an entrepreneur, Lesego's income fluctuates, which makes it difficult to commit to higher monthly payments, even though she wants to. "Some months are better than others," she says.

"I'm lucky to be married, and we're a two-income household. That helps ease some pressure."

She's also building other income streams. Together with her husband, she co-owns a rental property in Johannesburg - their former family home, which they built from scratch. To fund it, Lesego cashed out her pension when she left her corporate role.

"I'd never had employee benefits before that job. I came from creative spaces where pensions just didn't exist. During salary negotiations, I received a dummy payslip with all the deductions, but I focused on the net. No one ever explained how it all worked. There were no financial education sessions or workshops to guide us. In my 20s, I was living la vida loca - just happy to be able to pay rent and my expenses. But that changed when I got married and had kids.

"When I left the organisation to go out on my own, I withdrew my pension. But I felt good about it, because I was reinvesting that money into our financial future. My husband also withdrew his pension to help fund the house."

Lesego is also a partner in her family's property business, which includes several rental units. "It's not just about my annuity. The properties are part of our retirement plan too. We already earn some income from the rental house, and the business will eventually provide a share of the profits, split between my mom, brother and me."

Confidence built on lived experience

Lesego describes her investment approach as cautious. "I'm not a confident investor. I'm still unsure about crypto and the stock market," she says. "That's why I've stuck with what I understand - property."

Growing up, she learned the value of frugality from her family. "Even though my parents and grandparents worked, there was always a scarcity mindset in the house. They were careful with money, and it made me operate from a mindset that money is hard to come by. My instinct, when I have it, is to save it."

The gendered reality of retirement planning

Lesego's story reflects a broader challenge facing South African women. Even with expert advice, consistent contributions, and diversified income plans, she still has a shortfall in her retirement savings.

And she's not alone. Less than 10% of South Africans can afford to retire comfortably. But women are especially at risk, retiring with 21% less on average than men, according to new data by Discovery Corporate and Employee Benefits (link to press PDF).

The reasons are structural and systemic:

• The gender pay gap: Discovery CEB data shows that women earn an average of 76c for every R1 earned by men, a 24% gap that widens with age. By the time women reach their late 40s and early 50s, they earn as little as 61c to the R1 - a 39% gap - significantly impacting their ability to save for retirement.

• Caregiving: Women's careers are deeply impacted by unequal caregiving responsibilities. According to the 2021 Household Survey by Statistics South Africa (Stats SA), 43,4% of children live only with their mothers, compared to just 3,9% with their fathers. This places 10 times the financial burden on women, who need higher net pay to support their families or accept lower-paying jobs that offer more flexibility in childcare.

• Withdrawals: Discovery Corporate and Employee Benefits data shows that women are 3 times more likely to withdraw from their savings pot, taking advantage of the two-pot retirement system. They are also 80% more likely to use those withdrawals for school fees.

"I want to become more financially savvy," says Lesego. "But I don't want to attend a full-day conference or a networking event disguised as a finance workshop. There has to be a better, more practical way to learn about personal finance from experts who actually understand real life."

 A future built on purpose  and planning

While her journey hasn't been perfect, Lesego is intentional about building a sustainable financial future, one rooted in both experience and values.

"My mother wasn't afraid to invest in property. Watching her gave me the confidence to do the same. I might not know everything about stocks and bonds yet, but I'm learning. And more importantly, I'm taking action."