Women to Control $34 Trillion in U.S. Wealth by 2030

2024-12-11 economy

New York, Tuesday, 10 December 2024.
By 2030, women in the U.S. are expected to control $34 trillion in wealth, doubling from 10 years ago, indicating a shift in financial power and investment trends.

Unprecedented Wealth Transfer

According to McKinsey & Co., women in the United States are projected to control approximately 38% of investable assets by 2030, amounting to $34 trillion [1][2]. This represents a dramatic increase from $7.3 trillion a decade ago, marking a significant transformation in financial leadership [2]. The shift is particularly notable among ultra-high-net-worth women, whose share has grown from 6.5% in 2010 to 11% in 2023 [2][5].

Driving Forces Behind the Shift

This remarkable wealth transition is driven by multiple factors, including longer female lifespans, inheritance patterns, and an increasing number of women in high-earning careers [2]. However, significant disparities persist in the financial sector, with women earning 84% of what men do and holding only 12% of C-suite positions in public companies [2]. Currently, only 41 companies in the S&P 500 are led by female chief executives [2].

Investment Patterns and Industry Response

The financial services industry is adapting to this shift, though challenges remain. While 71% of women now report holding stocks, compared to 80% of men [2], there’s still a representation gap in the industry itself, with only 24% of certified financial planners being women [2]. Women’s investment strategies often differ from men’s, with a stronger focus on transparency, collaboration, and value-aligned investing [2].

Global Impact and Future Projections

The trend extends beyond the United States, with women’s assets in Western Europe projected to grow at 8.1% annually, compared to 2.7% for men [5]. This could lead to near financial parity between genders in Western Europe by the early 2030s [2]. This shift is expected to significantly impact philanthropy, as research from the Lilly Family School of Philanthropy at Indiana University shows women are more likely to donate than men, particularly to causes such as social justice and climate change [2].

Sources

Wealth Management Women Investors