You might have heard about the Great Wealth Transfer, which refers to the upcoming transfer of wealth from baby boomers to younger generations. One reason it’s so widely discussed is due to the enormous size of the wealth that will change hands. Over the next twenty years, tens of trillions of dollars (yes, with a T) are expected to pass to heirs and surviving spouses1.
What often gets overlooked? Women are positioned to inherit and control the majority of that wealth. Let’s examine the factors that determine why women will inherit most of this wealth, as well as how to use it as a financial planning opportunity and wealth-building tool.
Why Are Women More Likely to Inherit Significant Wealth?
Statistically, women live longer than men, which means they’re more likely to be the ones inheriting assets from the baby boomer generation. In addition, because of longer life expectancy, many women will inherit wealth twice—first from their parents and later from a spouse. This makes it essential to have a clear financial strategy for managing and protecting those assets.
How to Effectively Prepare and Take Control
- Be Proactive, Not Reactive
It’s always easier to make confident financial decisions when you’ve prepared in advance. That’s why we recommend learning how to manage assets before an inheritance arrives, or at least sketching out a loose plan for how those funds might be used. Building financial knowledge and establishing a relationship with a trusted advisor now can make future transitions far less overwhelming.
This is especially important for women, who often face a confidence gap around money despite being well-positioned to excel in managing it. Our goal isn’t just to provide advice, but to empower clients with education and clarity so they feel more in control of their financial future.
- See Wealth as Opportunity, Not Burden
Wealth isn’t just a collection of numbers—it’s a set of choices. From securing your retirement to supporting family or giving back through philanthropy, having a plan ensures your resources reflect your values. Inheriting wealth can sometimes feel like one more responsibility to manage, but it can also create opportunities you might never have imagined or thought attainable. Approaching the Great Wealth Transfer with a mindset focused on how to advance your goals allows you to use an inheritance as a tool not only for personal growth, but also for making a meaningful impact.
- Work With a Trusted Advisor
We’ve already mentioned it, but it’s worth repeating that one of the best financial decisions you can make is to find a trusted financial advisor. The Great Wealth Transfer is complex because it involves taxes, estate structures, investments, and emotions. An advisor can help simplify decisions, reduce anxiety, educate you, and advocate for your goals.
Why Now
Women are expected to control most of the wealth in the U.S. by 20302. That’s not far off; it’s practically right around the corner. The choices made in this decade will shape families and communities for generations.
The Great Wealth Transfer isn’t just occurring elsewhere. It’s a real concern for many women, but one that can be managed with the right team by your side. By staying engaged, informed, and supported, you can transform an intimidating transition into an empowering opportunity.
If you’d like to start building your financial confidence and create a plan that reflects your goals, let’s talk!
1. Bloomberg.com, 2024
2. Bloomberg.com, 2024