The Changing Landscape of Female Wealth – By Ramsey Crookall

From the cost of childcare to the price of gold, we are experiencing a period of tumultuous technological and political change that significantly impacts both our daily lives and the global economy. Our economic futures are constantly shifting, requiring us to be agile in adapting the investment strategies we manage for both our clients and our own personal finances.

Against this backdrop, the Great Wealth Transfer is underway. We are witnessing a historic shift in wealth as baby boomers pass on approximately $124 trillion to their heirs over the next decade. This year, it is estimated that more than 60% of the world’s wealth will be held by women, with around £5.5 trillion being transferred through generations in the UK alone.

While younger generations (Millennials, Gen Z) will eventually inherit, much of the wealth will pass directly to surviving ‘Baby Boomer’ spouses. It is often these female beneficiaries who may feel overwhelmed and underprepared to manage substantial assets, unlike their more confident and (hopefully) financially savvy daughters. The confidence gap is particularly evident in more ‘traditional’ relationships or in very wealthy families, where the patriarch has typically been the main wealth earner and manager of complex financial and tax arrangements, often taking the lead when children arrive or if a woman has stepped back from paid employment.

Understanding this evolving landscape is crucial for wealth managers and advisers, as it prompts a review of how we manage our relationships with clients and highlights the importance of engaging with both parties, not just the patriarch. Research from UBS has shown that, alarmingly, around 70% of newly divorced or widowed women choose to change their wealth adviser, illustrating the necessity of maintaining relationships with both individuals so they don’t need to look elsewhere.

Following the loss of a loved one, the emotional toll combined with the need to navigate potentially unfamiliar financial arrangements can be overwhelming, especially when clients are faced with decisions they have never previously considered. This is a critical moment when the client/adviser relationship becomes vital, particularly as clients may be vulnerable to well-meaning but ill-informed advice from friends, or worse.

We can assist clients in navigating this challenging period, providing the support and guidance needed to foster their financial confidence. Women may lack faith in their own abilities but often possess more experience than they recognise, especially if they stay informed about current affairs or have managed household income over the years.

It is essential that clients avoid rushing decisions; instead, they should take stock, review what is in place, and decide what can wait and what requires immediate attention. The initial focus may be on ensuring sufficient income to sustain their home and lifestyle. Once immediate needs are addressed, plans can be updated and refined to reflect a clients’ changed situation, providing the quiet confidence that comes with having trusted advisers and a plan that can flex as circumstances evolve.

So, how do we support clients in preparing for the future? The first simple step is to emphasise the importance of making a will. Studies indicate that around 50% of adults in the UK die intestate, making clear and up-to-date wills essential for certainty and peace of mind. For high-net-worth families with more complex needs, discussing the future provides an ideal opportunity to gather various professional advisers to develop a comprehensive plan. When families hold generational wealth, the focus often lies on investments, estate planning, and legacy structuring. Increasingly, families are also using this opportunity to explore philanthropic giving.

Philanthropy can build financial literacy and responsibility in the next generation, strengthening intergenerational bonds and fostering a sense of stewardship of family assets. It encourages the shaping of family values, with the legacy becoming as important as the financial capital over time.

In an era of significant economic change and unprecedented wealth transfer, the real risk is not market volatility, but missed engagement. Those who fail to involve, educate, and support the next generation of wealth holders, especially women, risk losing both relevance and trust.