The upcoming Great Wealth Transfer is poised to significantly shift economic power, particularly benefiting women. As baby boomers pass away, they are expected to leave behind approximately $84.4 trillion in assets, with a large portion going to Gen X and millennials over the next couple of decades.
A recent study by Equitable reveals that 57% of millennials anticipate inheriting at least $1 million. However, one group stands to gain even more: women. Due to factors like men’s shorter life expectancy, women are likely to receive significant inheritances, particularly spousal benefits.
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Approximately 34% of pre-retiree women in a survey expect to inherit over $1 million. With this newfound wealth, it’s crucial for them to start thinking seriously about investments. According to the findings, 68% of women aged 55 and older conduct their own investment research, while 81% of those aged 35 to 44 are eager to take charge of their financial futures.
Finance expert Michael Ryan points out the risks associated with suddenly acquiring wealth, suggesting that without careful planning, inheritances can disappear quickly, much like lottery winnings. He urges women to partner with financial advisors who understand their unique challenges and long-term goals.
“The landscape is changing; women are no longer sidelined in financial planning,” Ryan emphasizes. “With improved education and career opportunities, they’re increasingly at the helm of wealth management.” This wealth transfer could help close the gender wealth gap and boost female-led startups.
Matt Schulz, chief credit analyst at LendingTree, recognizes the significant economic impact of this wealth shift. The increased funds could improve the quality of life for many by affording necessary medical treatments. However, he advises caution: “Don’t count on an inheritance,” he warns. Unexpected medical expenses or market downturns could erase anticipated gains.
Ultimately, regardless of expected inheritances, Schulz encourages everyone to focus on savings and investments as though they aren’t getting any money in the future.