Women and the Great Wealth Transfer: Investment Trends and Insights

As the impending £90.8 trillion great wealth transfer approaches, women are poised to inherit a significant portion. However, recent research reveals notable differences in investment behaviors between genders, with women investing a smaller percentage of their inheritance compared to their male counterparts.

Investment Allocation Insights

• Women are expected to invest only 26.4% of their inheritance, in contrast to men who invest 36.2%.
• When it comes to savings, women allocate 14.3% of their inheritance, slightly more than men at 11.1%.
• Women also tend to spend more of their inheritance, with a spending rate of 15.4% versus 11.3% for men.

Regrets and Guidance Sources

Despite spending and saving more, many women express regret over their investment choices. Approximately 40% of women wish they had invested a greater share of their inheritance, compared to 30% of men.

Interestingly, women are also significantly more likely than men to seek investment advice from non-traditional sources, such as social media. Specifically, 27% of women engage with ‘finfluencers’ for guidance, whereas only 15% of men do the same.

The Role of Technology

Investment in technology is also shaping perceptions of financial advisement among women. A majority, or 68%, of women believe that advancements such as artificial intelligence will offer enhanced personalization and accessibility in financial advice, compared to 59% of men who share this belief.

Expert Views on the Wealth Transfer

According to Alexandra Haggard, Capital Group’s Head of Asset Class Services for Europe and Asia-Pacific, “With £90.8 trillion set to change hands over the next two decades, women will inherit a significant share of this wealth. Now is the time for them to take control of their financial future.”

Haggard also emphasizes that while many women prioritize savings over investment, some later experience regret for not allocating more toward investing their inheritance. “Many women turn to social media and ‘finfluencers’ for financial guidance, but as their financial needs grow more complex, professional advice becomes more crucial,” she notes. Capital Group is actively working with wealth managers to provide educational resources aimed at empowering female investors.

Research Methodology

The findings discussed are based on a survey conducted by Capital Group, which involved 600 high-net-worth individuals from Europe, Asia-Pacific, and the United States.