Women are about to inherit a considerable share of the $124 trillion that makes up the so-called “great wealth transfer.” However, according to Capital Group in its latest report, many of them show reluctance to invest their inheritance. On average, women invest 26.4% of their inheritance compared to 36.2% of men.
The report reveals that four out of ten women wish they had allocated more to investment, versus three out of ten men. In addition, women save more—14.3% compared to 11.1% for men—and also spend a larger portion of what they receive, 15.4% compared to 11.3%. Another notable finding is the difference in the type of financial advice they seek. According to the report, 27% of women look for guidance on social media or from finfluencers, double the rate of men at 15%. Likewise, 68% of women trust that artificial intelligence and other technologies will improve financial advice through greater personalization and easier access, compared to 59% of men.
“In the next two decades, $124 trillion will change hands, and women will inherit a significant share of this wealth. Now is the time for them to take control of their financial future. Our study shows that although many save more and invest less, some later regret not having invested a larger portion of their inheritance. The good news is that it’s never too late to start,” said Alexandra Haggard, Head of Asset Class Services for Europe and Asia-Pacific at Capital Group.
Other Findings
The results also show that although women will play a central role in the redistribution of global wealth, barriers still persist in their relationship with investing. For Capital Group, this scenario presents a double perspective: a challenge for the financial sector and an opportunity for more women to take an active role in managing their wealth.
In Haggard’s view, many women turn to social media and financial influencers for financial guidance, but as their financial needs grow more complex, the role of professional advice becomes more important. “As the process of the ‘great wealth transfer’ moves forward, the wealth management sector must adapt to women’s growing influence over wealth. At Capital Group, we have partnered with wealth managers to provide thought leadership in investing, events, and training to help their female clients invest with confidence and build long-term wealth,” she explained.
This research is based on a survey of 600 high-net-worth individuals in Europe, Asia-Pacific, and the United States.
