The New Face of Wealth

The impending shift in asset control to U.S. women represents a seismic change in the landscape of wealth management.

By 2030, it's projected that American women will oversee an extraordinary $30 trillion in financial assets, a sum so vast it rivals the annual GDP of the United States.

This historic transfer of wealth, predominantly from the baby boomer generation, signals a pivotal moment for the major industries such as wealth management.

Historically, most industries including wealth management has been a predominantly male domain, with only 15 percent of financial advisers being women, and the majority of financial decisions in affluent households being made by men.

However, this trend is on the cusp of a dramatic reversal.

Today, women already control a significant portion of U.S. household financial assets—over $10 trillion.

But the next decade is set to witness a monumental transition.

A major driver of this shift is demographics.

Currently, about 70 percent of the investable assets in U.S. affluent households are held by baby boomers, a generation poised for a large-scale transfer of wealth.

Importantly, a significant portion of these assets reside in joint households, where, traditionally, men have been the primary financial decision-makers.

With women typically outliving men by around five years and often being younger than their male partners, a substantial portion of these assets is expected to transition to female control.

The implications for the wealthy, affluent and luxury industries are profound.

To tap into this emerging market, individuals and industries must recalibrate their strategies to cater to the unique needs, preferences, and behaviors of female wealth creators.

This requires a nuanced understanding of how women approach financial decisions and manage their wealth.

The key to this approach will be diversifying offerings and systematically tailoring services to align with the distinct requirements of female clients.

This shift represents not only a challenge but also a tremendous opportunity for growth in all sectors.

Industries that adeptly adjust to meet the needs of this growing demographic of female wealth controllers will be well-positioned to capitalize on this unprecedented shift in the control of financial assets.