Happy Mother's Day - Be a Force for Change

A year ago, I wrote a post about gender equality on Mother’s Day. Fast forward to today, much has happened since then with mixed results. We had the #MeToo movement, which has brought about the downfall of some powerful men and heightened awareness of gender issues in our communities. Meanwhile, the World Economic Forum also reported that it would now take 217 years to close the pay gap between women and men, up from 170 years from a year ago. Despite the progress made in years past, women still make less money compared to men: for every $1 a man makes, a woman in a similar position earns 82 cents, according to the Bureau of Labor Statistics. And while women live on average five years longer than men, they tend to accumulate less wealth to support their longevity, partially due to the interruptions taken to provide care for their loved ones and part-time employment. To make matters worse, the wealth management industry traditionally caters to men only; financial planning generally does not account for the breaks that women make during their life course, nor cater to their preferences when it comes to investing. It is no wonder that over 70 percent of women replace their financial advisors after the death of their spouse.

I was invited to speak at a Women’s Wealth Forum two months ago, where I addressed this very topic of gender equality. Specifically, I talked about Leaning In, and how as a society, we need to stop putting the blame on women solely. Afterall, you could lean in only if you have the support in place to allow you to do so. In my own situation, to be able to speak in the event that day, I had to rely on two pairs of neighbors who took turns taking care of my kids at the crack of dawn and through the evening.

Creating a supportive environment takes effort from both public and private sections. Corporate leaders need to understand the constraints and challenges that parents sometimes face, and be willing to provide flexibility with their work arrangements. As a country, we need affordable child care policies and returnship programs to attract new mothers and caregivers to return to the workforce. According to a recent Citi Report, women typically bear a significant amount (about two-thirds) of unpaid work caring for their loved ones (including parent, grandparent, in-laws, and friends), which can contribute up to $10 trillion per year globally (13 percent of global GDP). High cost of childcare and elder care thus disproportionately impact women and contribute to lower female labor force participation in societies where the family caregivers are typically female. This “motherhood penalty” results in earnings penalty and lower lifetime incomes for mothers and female caregivers. A recent diagram from a Merrill Lynch report illustrates this perfectly. And as we face an aging society, it is going to become more important than ever to harness the potential of women workforce in the economy in order to protect our growth prospects.

The future is female

As we live healthier and more productive lives, longevity must be a key consideration in our financial planning; and even more so for women. By age 85, women outnumber men two to one, and the majority (81 percent) of centenarians are women. Tackling gender equity issues is no longer women’s responsibilities to bear – it is something that impacts our society at large.

As we celebrate Mother’s Day this year – let us take a moment to reflect upon the progress we have made on gender parity, and how far we have yet to go. Then roll up your sleeves and let your actions speak louder than words. Elevate women and recognize their contribution. Open the door of opportunities for them and promote their voices. Demand equal pay and play your part in closing the gender gap. We might not yet have all the answers, but if we do not demand change, we may never get there. Whether you are a husband or a partner, a policy maker or an employer in financial services, be part of the solution. We all have a role to play in shaping the future, not just for ourselves, but for our kids, and generations after them.

Let today’s footprint become part of your legacy tomorrow. Be a force for change.

And as my good friend Gregg Schoenberg suggested in his brilliant weekly briefing, the “best gift you can give your mom is to leave your phone at home, ditch the flowers, and haul yourself over for a visit.”

Happy Mother’s Day. Every day.