Women and Wealth

Here are some interesting facts about Female Investors:

-Women have accounted for over 50% of job gains, as gender wage gap still exists but has narrowed in 2019.

-Women outlive men by 6 years on average.

-By 2028, it is estimated that women will control $4 Trillion in financial assets and if real estate assets are included, the value is estimated at $8 Trillion.

-Women start more businesses and are often more risk averse in their investing approaches.

-Millennial women (born 1981-2000) are entering the highest circles of asset ownership faster than women born earlier: 22% of Baby Boomer women (born 1946-1964) have $5 million or more in assets, while Millennials come in at 32%.

-The definition of wealth is defined differently by generations as well as gender, with 38% of women including preparedness for the future in their definition, compared with 30% of men.

(Sources: CIBC Economics and RBC Wealth Mgmt)

Women and Wealth Transfer

Women face unique issues when managing the transfer of wealth to their next generation. A recent Scorpio Partnership* study found only 22% of women have a full estate plan in place. In addition, the study examines the financial behaviours of women to include:

  • 98% of women say they are joint or sole decision-makers for daily banking
  • 84% of women have joint or full responsibility for family investments
  • 92% of women are educating, or intend to start educating, the next generation on wealth and money topics

The reality of personal financial management lead by women is not new. However, the consequence of not being prepared for the implications of living longer coupled with not having an estate plan in place for a wealth transfer is concerning. Furthermore while millennial women are very active in their financial management and planning. Boomer women also play a critical role in the transfer of wealth and knowledge to the next generation.  Survey respondents indicated they intend to start educating the next generation at an earlier age (generally two years earlier) than men across all areas of money management—day-to-day budgeting, investment strategy and wealth transfer.

*Source: Global research by RBC Wealth Management conducted in collaboration with Scorpio Partnership