The Future is WealthiHER: Women at the Forefront of the Great Wealth Transfer

If you’ve been online or watched the news recently, you've probably heard the buzz about the “Great Wealth Transfer". This massive shift of wealth from baby boomers to the next generation is reshaping the economic landscape in unprecedented ways. But there’s a fascinating subplot: the increasing role of women in this transformation.

Women are poised to inherit a significant portion of the trillions of dollars changing hands. This presents a unique opportunity to reshape wealth’s impact and close the wealth gap: the proportion of people with the least wealth is expected to nearly halve since 2000. Today, wealth holds different meanings to everyone, and to women wealth often symbolizes security, independence, and empathy. Additionally, wealth often gets passed within the same generation between spouses before it moves to the next generation, and since women typically outlive men by about four years, intra-generational inheritance often precedes inter-generational wealth transfer.

According to the UBS Global Wealth Report, a staggering $83.5 trillion USD is set to be transferred over the next 20-25 years. Of this amount, around USD 9 trillion will be transferred within the same generation, primarily between spouses. The report also highlights that women are expected to inherit over 10% of the total wealth being transferred to the next generation.

These statistics are inspiring, but let's talk about something just as important: the ecosystem needed to make this wealth transfer to women a success. What kind of support and infrastructure do we need to ensure this financial handoff is smooth and empowering?

Financial Literacy
While women are increasingly better educated than previous generations, many still lack confidence in financial decision-making. Early financial education is crucial to building a foundation for future success. Programs like Girls Who Invest and Invest In Girls are paving the way by helping to close this gap. They offer education programs, mentoring, and internships to boost women’s confidence and capabilities. Early financial education can create a legacy of financial literacy, empowering women to manage their finances independently and make confident decisions for generations to come.

Additionally, financial education, coupled with trends of women marrying later in life, may create a system where women enter marriages with the knowledge and confidence to manage their finances, contributing to more equitable and financially secure relationships.

Role Models & Mentors
When women are successful, enter male-dominated spaces, and take on leadership positions, they not only advance themselves but also inspire the next generation. Studies show our peers influence everything from our health to our earnings, which is why mentorship matters so much. Female role models in fields like investment counselling, law, teaching, or STEM fields can ignite a flame in young women. Platforms like LinkedIn are great for connecting with mentors who are willing to share their journeys, but companies can also step in and take advantage by creating mentorship programs pairing seasoned women with newcomers, especially in wealth management and financial planning. This helps ensure the wealth transfer to the next generation is managed well.

Redefining Investing with a Women’s Perspective 
Women invest differently, with unique attitudes toward wealth and risk. Contrary to stereotypes, they’re not afraid of risks but are more selective and seek more information. McKinsey reports that 70% of women who inherit wealth switch financial advisors, showing their desire to be understood and educated. This indicates a shift in how financial advisors must engage with women, requiring both male and female advisors to be equipped with the skill set to meet these needs.

The next generation of female investors seeks not just returns, but also purpose—they want better, not just more.

Meaning, connection, and legacy are not just “buzz” words but priorities. Promoting purpose-led growth with new funding models that prioritize impact is essential. As we look to 2030, a new generation of female entrepreneurs, leaders, and investors will drive innovation with sustainability, well-being, and justice as key goals. Shifting the script involves abolishing bias by asking men and women the same questions and ensuring equity through flexibility and empathy.

There are countless ways to support and guide women in this generation, from dynamic mentorship programs and comprehensive financial education to innovative, inclusive investment opportunities. Embracing these approaches can unlock their potential and drive transformative change. The possibilities are limitless—how will you play a role in this change?

About the Author: Noha Fazili’s personal journey, shaped by growing up in a conflict zone, has fueled her deep passion for promoting financial literacy, particularly among women. She is driven by her belief that education is the foundation for personal and collective empowerment. Noha earned her MBA at Smith School of Business at Queen’s University in Ontatio and works in Wealth Management at Royal Bank of Canada