Women will be getting a big chunk of the $124 trillion that will change hands through 2048.
Inter-spousal transfers will put $54 trillion in the hands of widowed individuals, 95% of that to women, according to the Cerulli Report “U.S. High-Net-Worth and Ultra-High-Net-Worth Markets 2024.”
Because women are more likely to outlive their husbands, Cerulli predicts that control of almost $40 trillion in wealth will be first transferred “horizontally” to widowed women in the baby boomer and older generations through 2048. Of that, $21 trillion will transfer between high-net-worth spouses — those having $5 million or more in investable assets. At the same time, younger women are expected to receive $47 trillion in intergenerational wealth transfers. That creates a huge need — and opportunity — for professionals across the wealth and asset management sectors, Cerulli notes.
“When husbands pass away before their wives, finances are understandably the last thing the surviving spouse wants to think about,” says Chayce Horton, senior analyst. “This is why Cerulli recommends establishing relationships with all members of the client household as early as possible in the client lifecycle.”
A Good Start
Nine out of 10 HNW practices say partners of clients are involved in the financial planning process. That makes approaching widowed spouses about financial issues easier — and it helps with asset retention when substantial wealth is inherited by a spouse. Ensuring the relationship in advance is key for advisors, as women investors consider relationships significantly more important for advisor choice (53%) than men do (42%).
Female investors also differ in their advisory preferences and product needs. Women tend to prefer that advisors lead with financial planning and other strategies rather than investments. HNW women also tend to prioritize philanthropic and sustainability goals. The botton line, Cerulli advises, is that adding an expansive service menu can provide many benefits.
Cerulli recommends advisory firms take “substantial action” toward addressing the service gap between men and women, including recruiting women advisors, adding value-add services, and offering comprehensive advice.
“To address the existing gap in women-focused advice, some firms have begun to make strides by establishing recruiting and mentoring programs for women advisors and offering clients dedicated resources that emphasize topics such as financial planning and philanthropy,” says Horton. “Cerulli believes that firms that can provide direct support for women will have a tailwind for decades to come.”
