“In 2021, we had some pretty big learnings,” she said. “Covid had a big impact on financial security. Some 50 million Americans stopped or reduced their retirement contributions, and another 38 million began withdrawing money, which as we know has all kinds of challenges connected with it.”
For women especially, the impact was felt acutely, she said, pointing to a widening financial gender gap and increased female longevity.
“When people think of the pay gap, most people talk about it as being 82 cents earned to the dollar,” Dychtwald said. “But we have to look at it over a lifetime. A woman who starts working and stops working at the same time as a man will have made $469,000 less over her lifetime. When you add career interruptions to the lifetime pay gap, that gap widens to $1.1 million.”
What clients really need and want from financial advisors is guidance, she said. They want someone who can understand them, their needs and what makes them tick. And not just in the area of finances.
“Most retirees wish they had done a better job planning for the financial aspect of retiring, but they also wish they had planned for the other pillars,” she said.