What will happen when women control over 50% of global wealth?

Not so many years ago, the title of this article may have sounded like wishful thinking. But we are no longer talking in hypothetical terms: By 2030, USD 34 trillion will pass into the hands of women in the US alone, increasing their share of investable to 38%, up from 29% 10 years ago.

The Great Wealth Transfer

This massive wealth transfer is part of a larger phenomenon dubbed “The Great Wealth Transfer”, that will take place between now and 2048. An estimated 124 trillion dollars will exchange hands from the older generations - the Silent Generation and Boomers - to Millennials, Gen Z, and, to some extent, charities. It’s the largest intergenerational transfer of assets in history, and it will transform investments as women are projected to control over half of global wealth within the coming decade.

Between now and 2048, two factors drive this shift: First, as wealthy male Boomers pass, their longer-living spouses will receive more than 51 trillion dollars. Second, younger women will inherit wealth through the intergenerational transfer of wealth.

This trend is not unique to the US: A similar development is underway in Western Europe. Although numbers are smaller in magnitude, the change is impressive: Whereas women currently hold about a third of assets (4.9 trillion dollars), their share is projected to increase to 45% by 2030, According to McKinsey. Moreover, their wealth is estimated to grow at a much faster rate - 8.1% - compared to just 2.7% for men. McKinsey’s projection shows that, at this growth rate, women’s wealth could be at parity with men’s early in the 2030s. This is similar to estimates and projections for women’s average share of wealth globally.

Feminization of wealth

Other societal phenomena also affect women’s financial influence. Beyond inheritance, women are increasingly stepping into financial decision-making roles, driven by factors such as growing presence in high-earning positions and divorce.

Fidelity’s 2024 Women and Investing Study confirms women's financial step-up. The study found that 71% of women in the US invested in the stock market in 2024, up from 44% in 2018. Despite younger generations of women generally investing more than their elders, this study finds that Boomer women’s investing has made a stunning 23% leap in just one year.

Additionally, the study shows a shift in perception among women, who increasingly see investing as a means to build generational wealth. The younger, the more investment-savvy women become. 38% of Gen Z women invest outside of retirement - 10% more than women overall - and allocate 10.4% of their paycheck to investments. In line with this increasing female interest in investing, the study found that 1 out of 3 women made a first-time investment in a new asset class in the past year.

Women want more than returnsThe demographic shift in wealth distribution and women's overall financial empowerment will drive profound shifts in global financial markets. Women prioritize differently when it comes to their wealth. Compared to the current male-dominated wealth demographic, women are more likely to align investments with personal values and invest to do good.

Various studies show that women prefer:

• Value-aligned investments: Two-thirds of women prefer to invest in companies that promote social well-being and sustainability. Surveys show that 70% of women want their investments to reflect their values, and younger investors are twice as likely as older generations to divest from companies that don’t align with their ethics.
  
• Long-term approach: Women are more risk-aware, often focusing on long-term financial stability and resilience over speculative, short-term gains, which also results in asset allocation that is typically different from men’s.
  
• Supporting female entrepreneurs: Women investors are twice as likely as men to invest in female-led businesses, fueling a more diverse and inclusive economy.

The Female Wealth Effect

In the male-dominated world of finance, women are already managing more wealth than ever, and it’s not about to stop. As women gain wealth and influence, their investment decisions will help redefine financial markets, pushing businesses to be more transparent, sustainable, and aligned with long-term societal values.

After decades of being overlooked, women are stepping into the spotlight of the global wealth market. Wealth managers will have to compete for women, considering their values and objectives differ from those of men. That will inevitably impact the world of investing. The question is not if this will change investments but how fast we’ll see the impact.

How do you believe women will change investing?

This piece was originally published on Norselab.com for International Women's Day 2025.