Perceptions of retirement savings: Through the lens of Black amaXhosa women in South Africa

Charnè October,Gizelle D Willows

doi:10.1016/j.cpa.2021.102382

Abstract

Much research has been performed on the quantitative amount of formal savings held by various racial and gender groups and concluded that Black women are the least prepared for retirement. Therefore, a narrative of scarcity has been perpetuated without fully understanding the underlying reason. This research applies a gender lens to critical accounting and reconceptualises previous definitions and research using the narratives of Black amaXhosa women in South Africa. Various informal ways of saving and references to communal preparedness challenge the individualistic view of success as theorised in previous Anglo-Saxon research. The culture of providing financial support is learned behaviour and impacted by the theory of socialisation which plays an important role in how individuals interact with one another and create and maintain their social norms. Such feminine accounting reconceptualises the notion of retirement savings in a different cultural and social context, by focusing on the real life of ordinary people. It has removed some of the ambiguity on the negative impression of the savings culture of Black amaXhosa women in South Africa. The gendering of retirement savings, unconventional ways of planning for retirement and cultural dynamics influence retirement savings. This opens a dialogue on whether considering retirement preparedness purely via the quantitative amount of formalised savings and western ideologies is sufficient.

Highlights

There has been much research conducted on the quantitative amount of retirement savings held by various racial and gender groups (Brown, 2012; Fisher & Yao, 2017; Green, 2005; Lee, 2009; Meschede & Sullivan, 2016; Yao & Cheng, 2017)
The literature reviewed shows that only a few South Africans will have sufficient retirement savings to adequately maintain their living standards in retirement
Women are less likely to save because they are risk averse, have a lower degree of financial literacy, and often succumb to the care-giver gender role

Summary

Introduction

There has been much research conducted on the quantitative amount of retirement savings held by various racial and gender groups (Brown, 2012; Fisher & Yao, 2017; Green, 2005; Lee, 2009; Meschede & Sullivan, 2016; Yao & Cheng, 2017). The saving behaviour in South Africa has decreased year on year (The World Bank, 2019a). This practice has resulted in individuals having to save considerably more money in order to retire with sufficient income to continue their current standard of living. It is not surprising, that only 5.17% of South Africans retire at the age of 61.13 years with sufficient retirement savings to live comfortably (Alexander Forbes, 2018). In assessing the retirement savings of individuals within the South African landscape, it was found the Black women in South Africa were the least prepared for retirement (Willows, 2019a)

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