Women & Wealth: What the Next Phase of the Wealth Transfer Means for Female Investors

This represents an unprecedented opportunity for female investors, yet it brings unique challenges that require strategic navigation. Working with women to build financial knowledge and confidence is something I’ve been passionate about throughout my career, so this inflection point is particularly meaningful for me.  

Data shows that women actually tend to be more prudent investors than men, and yet sometimes a lack of confidence in managing finances can make them hesitant to take control of their own financial matters. With the Great Wealth Transfer upon us, the time is now for women to overcome that hesitation.  

Here’s a look at what’s to come, and how women can prepare. 

Understanding the Two-Phase Wealth Transfer 

The wealth transfer to women happens in two distinct phases. First, approximately $54 trillion will move through spousal inheritance, with 95% of surviving spouses being women. This reflects both women's longer life expectancy and typical age differences in marriages to men. 

The second phase involves vertical wealth transfer, where roughly $47 trillion will pass from older generations to daughters and granddaughters. By 2030, women are expected to control 38% of investable assets in the United States—approximately $30 trillion in financial power. 

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The Confidence Gap Challenge 

As I mentioned earlier, women face a persistent financial confidence gap. Recent surveys found that 80% of women who inherited from parents and 83% of widows face a "wealth transfer challenge" such as not knowing whether their benefactor had a will or where important documents were located. 

This gap exists despite compelling evidence showing women excel as investors. Research demonstrates that women's portfolios frequently outperform men's by implementing patient, disciplined strategies focused on long-term goals. While 71% of women now own stock market investments (an 18% increase from just two years ago) many still underestimate their financial capabilities. 

Key Challenges Women Face 

Women encounter several unique obstacles when building wealth. The gender wage gap remains significant, with women earning approximately 80% of what men earn. This disparity compounds over time, resulting in median retirement savings of $50,000 compared to men's $157,000. 

Career interruptions for caregiving responsibilities further impact financial positions. Nearly 39% of women have forfeited income or career advancement to care for children or aging parents. Additionally, women's longer life expectancy—five to six years beyond men—means retirement savings must stretch further to cover healthcare costs and living expenses. Working with a financial advisor to plan for such circumstances can help ease anxiety in these areas.   

Turning Inheritance into Lasting Wealth 

The key to maximizing inherited wealth lies in proactive planning. Recent research found that 93% of women expecting an inheritance are building wealth independently rather than relying solely on those funds to achieve their financial goals. 

When women inherit, they're making smart choices. Studies show that 45% invest their inheritance for long-term growth, 43% use it to pay off debt, and 41% allocate funds for meaningful experiences. These decisions reflect women's goal-oriented, values-based approach to financial planning. 

Essential Steps for Female Investors 

Start investing early and don't wait for an inheritance to begin building wealth. Women who begin investing earlier build significantly more wealth through compound returns. Millennial women now start investing at age 27 on average, compared to Gen X women at 31 and Boomers at 36. 

Have transparent conversations with family members about estate planning before wealth transfers occur. Many inheritance challenges could be prevented through better communication about wills, account locations, and trusted advisors. These conversations may feel uncomfortable, but they're essential for smooth wealth transitions. 

Work with a trusted financial advisor who understands women's unique circumstances. A comprehensive wealth management partner can help you navigate tax implications of inherited assets, develop appropriate investment strategies, plan for longevity and healthcare costs, and integrate inherited wealth into your existing financial plan. 

Develop a clear plan for inherited assets before they arrive. Women are more likely to leave rollovers uninvested for extended periods, missing potential market returns. Having a documented investment strategy prevents cash from sitting idle and losing value to inflation. 

Take Control of Your Financial Future 

The great wealth transfer presents a pivotal opportunity for women to achieve financial independence and security. While challenges persist, women have demonstrated strong investing capabilities when they engage proactively with their finances. 

Whether you're expecting to receive an inheritance, managing spousal wealth transfer, or building wealth independently, partnering with experienced advisors who understand your unique circumstances makes all the difference. 

At WHZ Strategic Wealth Advisors, we work with women of all ages and in all stages of life to help women navigate complex financial decisions with confidence. Our comprehensive Plan Well. Invest Well. Live Well.™strategic process is designed to map out a financial plan that addresses your specific goals and life circumstances, helping to deliver on our goal of providing you with "Absolute Confidence. Unwavering Partnership. For Life." Contact us for a complimentary consultation at whzwealth.com or call (860) 928-2341. 

Authored by WHZ Managing Partner, Advisory Leisl L. Langevin CFP® CDFA®. AI may have been used in the research and initial drafting of this piece. Securities and advisory services offered through Commonwealth Financial Network®, Member FINRA/SIPC, a Registered Investment Adviser. 697 Pomfret Street, Pomfret Center, CT 06259 and 392-A Merrow Road, Tolland, CT 06084, 860.928.2341. http://www.whzwealth.com. These materials are general in nature and do not address your specific situation. Diversification does not assure a profit or protect loss in declining markets and cannot guarantee that any goal or objective will be achieved. For your specific investment needs, please discuss your individual circumstances with your financial advisor. WHZ Strategic Wealth Advisors does not provide tax or legal advice, and nothing in the accompanying pages should be construed as specific tax or legal advice.