The Gender Wealth Divide WTW Leader On How It Can Be Bridged

He said: “For me the main issues were the impact on career, family support, life events, financial literacy and confidence in building wealth. Even a short break from work, a part-time job or a career postponement has an impact. "It is detrimental to a woman's long-term well-being and retirement. The impact may be disproportionate to the amount of income lost, as she may have accumulated most of the retirement savings."

Root cause of the gender wealth gap

Among the report's findings, it found that the UK has the largest wealth gap in Europe, below the global average for gender equality in pension wealth. Exploring the underlying reasons for this, Paul points out that in the UK, the lack of accessible and affordable childcare, together with social protection concerns, disproportionately burdens unpaid care work. on women's shoulders and exacerbate the difficulties of creating equitable retirement assets.

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Another startling statistic from the report shows that the retirement gender wealth gap increases with seniority. One thing that's become increasingly clear from the many reports on the gender pay gap in recent years, Paul said, is that many organizations have far fewer women in leadership positions than in others. levels of the organization.

"These roles tend to be the most rewarding, and although wages at work are not the only contributor to wealth in retirement, they do play an important role in building wealth over the course of a career," a- he declared. “Companies, including WTW, have taken steps to address this issue by deliberately increasing the number of women in leadership positions in their organizations to ensure that career progression is not held back.

"We need to create an environment that attracts more female talent at all levels and make sure we have the right culture to support them."

How has the DE&I conversation evolved?

Referring to how current diversity, equity and inclusion (DE&I) initiatives have evolved, Paul noted that work on human development and inclusion has expanded from diversity to diversity and to inclusion and now to equity and justice. Therefore, he says, it is essential to make us aware of this complex and multifaceted problem, its root causes and what can be done to change its future.

"Gender-related wages are not the only factor that affects retirement wealth, but they are certainly a very important factor in people's income, and the differences can significantly increase career length," he said. she declared. “Most of the strategies we use to close the gender pay gap involve understanding the barriers women face in navigating the corporate environment and focusing on equal opportunity careers.

"This will help more women reach high-paying leadership positions and help us close the wealth gap. Public pension plans are also found to be an important component of accumulated wealth. Our research highlights Given the importance of employer-sponsored plans, it's about knowing the plan's funding advantage.

Assess what actions leaders can take

Given the #BraverCultures theme of the 2022 Dive Festival, steps can be taken to change the communication around gender equality in resources, and Paul explains that there are several important steps leaders can take to limit the resources. The shortcomings are particularly related to support for job equity, comprehensive benefits and flexibility, he said. As employers, we need to ensure people have the ability to take on other life responsibilities without leaving the workplace.

He said: “In the event of absence, we need to ensure that people can return as quickly and easily as possible, as well as adapting to the changes that many employees experience during their working lives. Men have to work from home due to increased family responsibilities. While new, more flexible working models can help with this, it is important that this is not seen as a barrier to progress. »

Many companies are just beginning to understand the role of benefits in gender resource outcomes, particularly in the areas of health care, savings and caregiver support, Paul says. As leaders, we need to understand the diverse needs of our colleagues and expand access to personalized, profitable savings programs that include choice and personalization.

The Role of Insurance in Closing the Gender Wealth Gap

Referring to the role of the insurance profession in closing the wealth gap, Paul said that as the industry focuses on risk, insurers need to be particularly aware that the wealth gap between gender will affect corporate business models. It can be a wasted talent or a talent that hasn't been used to its full potential.

She said the insurance industry itself has made great efforts to improve diversity and inclusion in general, with a particular focus on recruiting and retaining more women in leadership positions. This requires focusing on increasing hires outside of the industry and reaching a wider range of diverse talent by seeking out people from non-traditional backgrounds.

She said: “In addition to how the insurance industry works for employees, it is also important to ensure that the products offered are suitable for the risks women need to be insured against. Duik himself has been instrumental in this, raising awareness of issues and encouraging solutions, returning to these issues year after year to ensure progress.

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