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How Women Can Create a Financial Plan That Ensures Long-Term Security

You face unique financial challenges, including longer life expectancy, career breaks, and persistent pay gaps.
Building a financial plan that delivers long-term security requires a strategic, proactive approach tailored to these realities.

Here is a guide on how women can take control and secure their financial future.

You manage money in a different way to men and have less time to consider your personal finances. You have a career or family to consider first.

You are remaining single longer so you can achieve realistic career goals.
Mature women are also returning to the workforce, not only for financial gain, but for self fulfilment.
Your earning capacity is a vital part of the economy...just look at the tax you are paying!

You need sound Financial Plan to protect yourself and your loved ones in times of stress.

Whatever age you are now, the worst thing you can do is to wait before taking action!
You need to make sure you can afford the things in life tomorrow and in retirement.

• One in four women are on their own by age 64, whether through divorce, separation or widowhood.
• Eight in 10 women will manage their own money at some point during their lives.
  Only 2 will have the luxury of not having to worry!
• Women with retirement plans generally save 5% of their salary, versus 15% saved by men.
• Of widows living in poverty, 80% were not poor before their husbands died.

So, there's no time like NOW to make sure that, at least financially, you'll be okay.

The First Steps to Building Your Secure Financial Foundation.

1. Set Clear Financial Goals

Start by identifying your short, medium, and long-term financial goals.
These can include saving for a home, building an emergency fund, or planning for retirement.
Writing down these goals makes them tangible and helps you track progress.

2. Create and Stick to a Budget

A budget is essential for managing money effectively. In order to see just what have you own, you'll have to budget.
A budget establishes ahead of time where your money will go, and gives you a new power over your money.

You track your income and expenses to identify your spending patterns, and can then prioritise needs, allocating funds for savings and debt repayment.

A budget is dynamic and changes as your life progresses. It's a balancing act to maintain a comfortable lifestyle while planning for the future.
The reward is worth it - you'll eliminate your anxiety and gain control of your money.

If you have money left over at the end of the month - great!
If not, that's all the more reason to invest.
You'll need to do some adjusting to your spending, to create the funds you need to begin an investment plan.

3. Build an Emergency Fund

An "emergency find" refers to a sum of money that you set aside specifically to cover unexpected expenses or financial emergencies.
It's a reserve of cash that provides a safety net for situations like job loss, medical bills, unexpected repairs, or other unforeseen events that life presents to us.

You should aim to save 3 to 6-months’ worth of living expenses in a separate, easily accessible account - like a money market fund at your bank. And it needs to be liquid so you can get money in a hurry.

According to the South African Reserve Bank's 2022 Financial Stability Report, households with emergency savings were 73% less likely to face financial distress during economic downturns.

How Can Women Protect Their Financial Future From Life’s Uncertainties?

Get the Right Insurances
You should review your health, life, and disability insurance coverage at least annually.
Comprehensive medical aid is crucial, especially as women tend to live longer and may face higher healthcare costs in later years.

Life and disability insurance can protect your loved ones and your income if you’re unable to work.

Life Cover.

Women face greater risks than men.
Heart attack and strokes, previously the domain of males has now become a significant threat for women.
The added threat of breast cancer makes it vital you have life and dread disease insurance.

If you are young and single you may not need life cover, but remember life cover is cheaper and more easy to get at your age.
It only gets more expensive - the longer you delay! Suffer an life-threatening event and you may never be able to get cover, let alone become a financial cripple.

Disability and Dread Disease Cover

What if you cannot earn an income because of an accident or illness
How will you meet your bills and live?
Surely, you don't want to be a financial burden on those you love?

If you have any liability like a bond or car, please consider life cover.

Maybe you share a town house with your boyfriend. What if he dies or is disabled and cannot help with your bond?
Have you considered a partnership type agreement with him to secure your home?

If you have dependants, you must have cover!
You want to ensure that, at least, your children are protected until they are self-supporting.
The costs of replacing your skills around the home will run into hundreds of rand per month.
Could your husband afford a full-time au pair?

You may be dependant on your husband's income.
If so, has he sufficient cover to protect you and your children?
Widowhood is a distinct possibility and, distressing as it is, you must consider it.
Some women face financial chaos when widowed. If you rely on your husband's bank account and it is frozen on his death - then what?

As bearers of the next generation, you carry an awesome responsibility.

And although it may be tough paying the premiums, insurance is one of those things that is better to have and not need, than need and not have!

What is the cost of cover?

Save around 10% to 15% of your salary for long-term savings like your pension.

Pension Plan

Having no money today is bad enough, but just think how bad it would be if you have no money when you are 80 years old and then have to depend on your children!

Because you may break your career to raise a family, you loose out on your retirement savings (and in most cases women don't even plan at all!)

You generally live longer than men. Just visit a retirement home to confirm this.

Your pension must last longer than that of a male.
Therefore, you need to start pension savings as soon as possible and save more than men, especially if you take a career break.

If you rely on your husband's pension you are treading on dangerous ground!
The rate of divorce is high. One in three marriages end in divorce.
It may be pessimistic to plan around a future divorce, but to ignore it is foolish.
On average, single retired women have a third more income than divorced retired women.

If you have taken a career break to raise a family and are back at work, your priority now is to maximise your pension savings.

Want a quote - please complete the Retirement Plan Quote

You need to maximise your retirement savings as well as your employer-matched contributions whenever possible.
Even small increases in your 20s, 30s, or 40s can make a significant difference over time.

Stay Invested and Don’t Withdraw Early.
Avoid dipping into your pension savings before retirement, as this will significantly reduce your future income.

Staying invested allows your money to grow and compound, providing a larger nest egg for your later years
The effect of compound interest is a much-misunderstood concept.

If you want to help your children pay for a deposit on their home or provide a wonderful wedding for your daughter - you need to save.
And the sooner you begin - the greater your benefit and the sooner you will be financially independent.

Paying for Children’s Education is a priority.

Start early - at birth is best. And if you have not yet done so, it is never too late to begin.
Every cent will help.

What should I be saving for education?

The Best Financial Advisor for Women.

Please work With a Licensed Financial Advisor.
A knowledgeable financial professional can help you identify and address your unique income gaps, career interruptions, and long-term care planning.

Personalised advice ensures your strategy aligns with your goals and risk tolerance.

Knowledge is power and also peace of mind!
If you don't know who handles your family finances you are likely to fall prey to your own helplessness and the vultures out there.

• Who owns what?
• Whose name is the house in?
  If your husband goes insolvent, will you loose your home?
• Do you both have wills? Who are his beneficiaries?
  If he was divorced, has he changed his old will?
  Where is his will and other vital documents like the title deeds to your home?
• What pension benefits does he have?
  What group life cover has he got and are you a beneficiary?

If you are getting married, it is vital you investigate the type of marriage you want..
Women handle more than half of a family's day-to-day finances, yet they handle virtually no family investment decisions.

Not surprisingly, after learning key investment principles, women have earned higher returns than men have.

Your Action Steps for When Seeking Financial Independence

• Write down your financial goals and review them regularly
• Track your spending and stick to a budget
• Build and maintain an emergency fund
• Invest early and consistently, focusing on long-term growth
• Maximise your retirement contributions
• Review insurance policies and legal documents annually
• Seek advice from a trusted financial professional like us.

Hopefully this will plant a seed for you to take your security a little further.
If it does then please, please call me - don't let it wait!

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Important Disclaimer:This content is for informational purposes only and does not constitute financial advice. Past performance is not indicative of future results.
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Last update: September 8, 2025