Women and Wealth Transfer

Women over 60 now command a substantial portion of global wealth, and their decisions are reshaping how wealth is transferred and managed. According to The Wall Street Journal, these women often make different choices about their wealth, especially when they become the sole money managers. This newfound autonomy allows them to prioritize their financial preferences and objectives.

The Magnitude of Wealth

According to McKinsey & Co.'s affluent consumer survey, in 2024, American women over age 60 controlled some $8 trillion of liquid assets. Women's wealth has grown by about 80% since 2018, outpacing the 62% growth in total wealth. In addition, market research company Cerulli Associates projects that in the near future, nearly $40 trillion of wealth will transfer to widowed women who are baby boomers or older.

Change Afoot

McKinsey also reports that men are the primary financial decision-makers in about 60% of affluent U.S. households. Older women are less likely than men to have relationships with their financial advisers. But this situation is changing. As opposed to their predecessors, today's women aren't only stockpiling wealth from their careers but also becoming more active in managing their future finances by participating in current family money management. They're expressing their management and distribution preferences now. Women are aware of the greater possibility they'll outlive their husbands. Federal data shows that women are likely to outlive men by more than five years as female lifespans lengthen relative to men's. Consequently, as a group, women aged 65-plus are making different choices about their wealth once they become sole money managers. They're more likely to prioritize future long-term healthcare expenses and charitable gifts than their husbands.

Investment Differences

These women are also more likely to invest more conservatively than their husbands may have, focusing more on protecting capital by holding stable assets and bonds with longduration yields. But everyone's investment needs are different, and other or additional types of investments may be more appropriate to meet a woman's individual needs and goals. If you anticipate receiving substantial wealth in the future, it's never too early to meet with a financial professional to discuss your future.

Affluent women influence 85% of charitable giving decisions.

Source: Lilly School of Philanthropy at Indiana University.