Maddy Dychtwald

In 1986, Dychtwald and her husband, Ken Dychtwald, PhD, founded Age Wave, a consulting firm .”[3] To date, over half of Fortune 500 companies have collaborated with Age Wave on matters related to the aging population.[4] Dychtwald and Age Wave, in partnering with financial institutions, including Merrill Lynch, Edward Jones, LPL Financial, Ameriprise Financial, Allianz, SunAmerica and Charles Schwab, have executed and published dozens of leading research studies on aging, longevity, health, caregiving, financial planning, investing, housing, family, leisure, and retirement, examining the related trends, implications, and future forecasts of both the overall adult population and women specifically.[5][6][7]

Dychtwald has authored books, research studies,[5] and articles on the evolution and dynamics of female financial challenges and power, as well as the disparity between genders in income and wealth, leadership, career progression opportunities, and social experiences.

In a 2011 The Huffington Post article, Dychtwald articulated her beliefs that, in the professional context, women should not be complacent or overly conservative in career goal setting, and that they should embody a bold and persevering mentality, limit or avoid feelings of intimidation, actively seek mentorship in their field, and focus on developing their career and networking skillsets.[8] In a 2010 Entrepreneur article,[9] Dychtwald encouraged women who find themselves in unenjoyable and/or unfulfilling corporate careers to consider transitioning to entrepreneurship if their passions, skills, and experience aligned with such an endeavor. Dychtwald believes entrepreneurship provides women with more freedom while limiting or eliminating external perceptions that they are “impostors,” which research suggests is common in corporate settings, as well as insulation and protection from unemployment caused by corporate layoffs, pointing to data from 2008 showing that, as medium and large companies laid off employees by the tens of thousands, small companies were actually hiring.[9]

Based on her research, Dychtwald believes the gender lifetime pay and wealth gaps to be more substantial than may be commonly understood.[10] She believes this gap is contributed to by the disparity between genders in workplace compensation as well as the common tendency for women to shoulder the family caregiving burden, with more time spent out of the workforce to do so than men. Considering these factors, without considering secondary wealth factors like 401(k) and retirement savings, personal investments, and assets like real estate, she found that, by retirement age, men on average accumulate in excess of $1 million in wealth more than women.[10] After considering secondary wealth accumulation factors, Dychtwald believes the gap could be substantially more. To curb this wealth gap, Dychtwald believes women should focus on saving additional money for time out of the workforce, seek employment that offers flexibility and embraces the fluidity of transitioning in and out of the workforce, and/or negotiate leave with their employers. Dychtwald advises women to understand their circumstances and options, specifically related to the tendency of time out of the workforce to not only affect present compensation but future compensation as well.[10] Dychtwald also believes the longer average life expectancy of women than man should be a major consideration in women's financial planning and independence, particularly in the context of potential widowhood and the higher cumulative expenses, particularly those related to health care and long-term care.[10][11]

Presenting her research in 2015, Dychtwald wrote on the juxtaposition of gender-centric retirement behavior for The Wall Street Journal.[12] Her findings showed retired women both prioritized “giving back” more than men (68% vs 62%) and contributed financially (81% vs 71%) and volunteered (29% vs 22%) more than men in retirement.[12]

As a result of this focus group-centric research initiative, Dychtwald and the study found five financial “identities” of women.[1][5] The “Alpha Female” (18% of females studied) feels in charge of the circumstances of her life, and embodies psychological and financial independence.[1] The “Perceptive Planner” (35% of females studied), unlike Alpha Females, is highly analytical, responsible, and primarily motivated by the desire for security and stability.[1] The “Power Partner” (23% of females studied), the happiest of the five identities, often financially paired with a partner (spouse, male family member, or friend), believes her decisions will benefit from the input of her partner; is collaborative and willing to compromise; and is motivated by the desire for stability.[1] The “Supportive Traditionalist” (8% of females studied) is highly emotional regarding finances; enjoys spending money, but disinterested by developing financial acumen; and relies on another individual to manage her financial stability and well-being.[1] The “Uncertain Searcher” (16% of females studied), the “least-confident” identity, exhibits strong emotion, impulse, and fear when faced with financial matters; is often debt-burdened; and is lacking the skills to proficiently manage her finances.[1]

The research and findings of the Women, Money and Power study have been the subject of discussion in news media, including U.S. News & World Report[13] and The New York Times.[14]

In 2017, in a collaborative effort with Merrill Lynch, Dychtwald led and co-authored the study, Women and Financial Wellness: Beyond the Bottom Line, a comprehensive examination of shifting trends related to the financial power of women in the modern era, particularly regarding financial decision-making, financial planning, investing, and wealth management.[15][16]

The study, via Kantar TNS’ Kantar Lightspeed Panel, conducted a survey of 3,707 adults (2,638 women, 1,069 men) across the United States from October 25 - November 22, 2017.[15] The study examined the motivations and priorities of women as related to money, financial management, and investing.[15] In this vein, the study delved into (the lack of) female investing confidence and the financial services industry's catering, or lack thereof, to female investors.[15]

In the context of continued advancement of the female experience, the study provided perspective on the historical progression already achieved for the female gender, e.g. property ownership (1862); suffrage (1920); the ability to obtain personal credit cards (1974); and that women represent 57% of today's college degree earners.[15]

The study forecast that women would control $22 trillion of financial wealth in the U.S. by 2020.[15] The study examined how the gender pay gap accrues over a women's lifespan and found that, due to increased modern longevity of life, women should plan for a life expectancy of over 100 years.[15]

In her study of demographic and financial trends, specifically the shift and balancing of domestic financial power and decision-making from male-dominant to female-shared, Dychtwald identified and opined the 2008 financial crisis as a “tipping point” for the shift and increase in female activity in the realm of household financial and investment influence.[17] Deriving from her study with Merrill Lynch, Dychtwald found a direct correlation between a woman's age and confidence in financial investing, which she attributes, in part, to increases in both female education in and exposure to finance management.[17]

This study and its findings have been featured in prominent media discussions of topics related to the intersection of gender and finances. In an article about aging, retirement, and the gender pay gap, The New York Times cited the study, as well as quoted Dychtwald directly, in discussion of variations in gender life longevity, female financial management, saving for retirement, and the taboo nature of women discussing financial matters.[18] MarketWatch featured the study's findings in an article on the difficulties for women to save for retirement.[19]

In 2003, Dychtwald published her first book, Cycles: How We Will Live, Work, and Buy (2003), in which she examined the evolution of the American lifestyle from generations past to present.[20] The National Community Colleges Association named Dychtwald's Cycles: How We Will Live, Work, and Buy as the winner of its “Book of the Year” award.

In Influence: How Women's Soaring Economic Power Will Transform Our World for the Better, published in 2010, Dychtwald and her co-author, Christine Larson, examine past, present, and future forecasts of demographic trends involving gender and financial power.[21]

Influence and Dychtwald's related insights and perspective on gender socioeconomic demographic trends, the relationship between women and finances, and the empowerment of women have stimulated and been featured in gender status discussions by major media outlets, including CBS News,[22] Time,[23] Forbes,[24][1][25] Fox Business,[26] The Wall Street Journal,[27] and Women Inc.[28] Influence also generated commentary from academic, government, political and business leaders, including: Dr. James Canton, CEO and Chairman of the Institute for Global Futures; Cathie Black, President of Hearst Magazines; Andrea Dew Steele, Founder and President of Emerge America; United States Congresswoman Cathy McMorris Rodgers; Beth Brooke-Marciniak, Global Vice Chair of Public Policy for Ernst & Young; Marie C. Wilson, Founder of The White House Project; and Robert Reich, former United States Secretary of Labor and current professor of Public Policy at the University of California at Berkeley.