“ ANXIETY OVER TAKING MATERNITY LEAVE & WONDERING ABOUT THE FUTURE OF YOUR JOB & CAREER PROGRESSION BECAUSE YOU HAVE A CHILD IS A SYMPTOM OF A MUCH DEEPER SOCIETAL ISSUE.”


SAM BOURGI, ANALYST, INVESTORS OBSERVER


and, therefore, their lifetime retirement savings,” Sam Bourgi says. Government matching or top- ups, universal retirement accounts, and caregiver credits could potentially mitigate the impact.


HOW TO REDRESS THE BALANCE One of the key issues is that global companies have opaque or inconsistent pay across jurisdictions, sometimes for the same role. “It is common for companies


to offer different pay packages for the same role depending on local norms,” he says. “To prevent the gap from widening, companies with global teams should standardise mobility policies (including pay) and apply them consistently across genders and geographics.” Conversely, the public sector


has one of the narrowest gender pay gaps, given the standardised pay scales, greater transparency in compensation, stronger benefits and paid leave, and more predictable promotion tracks. “The private sector could


probably apply some of these lessons in creating transparent and predictable pay structures,” he says.


THE IMPORTANCE OF FINANCIAL LITERACY Financial literacy plays a crucial role to lifetime financial security and wealth, yet access to investment education remains uneven. Those who understand how to maximise 401(k) contributions and employer matches are better equipped to prepare for retirement in the US. Bourgi stresses the importance of consistent saving and long- term planning – areas where gaps in knowledge can have lifelong consequences. “People who are financially


literate are more likely to invest, save consistently, and plan for the long term,” he says. “They are also more likely to maximise 401(k) contributions, which play a significant role in preparing oneself for retirement. Understanding how to maximise 401(k) contributions can ensure that workers do not delay saving for retirement or leave employer contributions on the table.” Economic shocks, too, have


gendered consequences. Women are overrepresented in sectors that are more vulnerable to downturns, such as retail, hospitality, and caregiving. During the Covid-19


pandemic, women experienced a disproportionate share of job losses in what became known as the “She- cession,” driven by school closures, childcare shortages, and unpaid caregiving responsibilities.


RETHINKING THE WORLD OF WORK The


current retirement


system favours linear, full-time employment, Sam Bourgi says, and acknowledges very little about non- linear career paths due to maternity leave, child rearing, or other forms of unpaid care. He argues that pension formulas


should not just focus on “highest earning years” or “total years of service,” but should also factor in real-life circumstances that may require people to pull away from full-time work. Traditional planning also overlooks longer life expectancy (especially for women), greater likelihood of part-time work, and out-of-pocket health costs during retirement. However,


it is unclear


whether workplace structures can accommodate anything but the status quo at the moment, he says. So how can public discourse move


75


GLOBAL LEADERSHIP


FINANCIAL INEQUALITY


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