Women Set To Benefit $87 Trillion in Wealth Transfer the Next 4 Years

Over the next two decades, trillions of dollars will shift from older Americans to their spouses, children, and charities. Women are poised to inherit a considerable portion of that wealth, initially through spousal inheritance and later, across generations. Nearly $87 trillion of the estimated $124 trillion great wealth transfer will pass to women between 2024 and 2028.

This movement intersects with the broader financial influence of women.  Currently, women control about one-third of U.S. retail financial assets (deposits, retirement and taxable investment accounts, annuities, cash-value life insurance, etc.), and they are on track to hold roughly 40–45 percent by 2030.  Longer life expectancy, higher earnings among women aged 25–54, and an increase in women-led households and businesses contribute to this growth.

Women’s Buying Power Has Increased

Recent spending data indicated that women are leading in consumerism. The Bank of America Institute found that women’s median discretionary spending rose at a faster rate than men’s for most of 2019–2024 and continued to surpass men’s into late 2024. Women’s median income growth also outpaced men’s, supporting their greater spending power.

Investment Participation and Behavior

Fidelity’s 2024 Women & Investing study revealed that 71% of women now own stock market investments, an 18% rise from 2023. Having a stake in the market matters when transferring money because invested assets grow through compounding, while idle cash does not. However, research indicates that women approach investing differently from men. Overall, women tend to be more goal-oriented, trade less, and rely more on professionally managed portfolios. This steady behavior can be beneficial in the long term. On the other hand, Vanguard studies revealed that women are more likely to leave rollovers uninvested for lengthy periods. This can forfeit potential market returns.

The great wealth transfer will afford many women the opportunity to advance financially through smart investment strategies that maximize every dollar.  Unfortunately, women face unique challenges that can hinder their progress. 

• Longevity and sequencing risk: On average, women live six years longer than men.  Therefore, women’s portfolios must fund more years of spending while managing the risk of poor returns early in retirement. Many women will inherit as surviving spouses, so Social Security decisions, portfolio withdrawal rates, and guaranteed income tools like annuities carry added magnitude, emphasizing the importance of advanced planning on spousal transfers before health events or cognitive decline.
• Confidence and time out of the workforce: Studies and industry surveys consistently reveal lower financial confidence among women despite comparable outcomes when they stay invested. Career breaks for caregiving compress both savings time and employer match accruals, widening retirement gaps.
• Cash drag after inheritance: Estate distributions often happen in stages and through multiple accounts. Incoming funds can sit in cash without a documented investment plan. Every uninvested penny counts and potentially reduces wealth when it comes to inflation, as evidenced by Vanguard’s finding on uninvested rollovers, highlighting the need for a pre-established plan for new assets.

What’s Working for Women’s Investment Patterns

Women often anchor their financial decisions to goals. These may include upholding a lifestyle, funding a loved one’s education, or aligning capital with values. This orientation complements evidence-based practices: diversified core holdings, disciplined rebalancing, and low turnover. Women’s steadier approach can lead to better risk-adjusted outcomes. By avoiding costly overtrading and applying prudent rebalancing practices for adequate growth, women’s portfolios can potentially keep pace with longer retirements.

Tips for Transferring Wealth 

• Name the money: Beneficiaries should map assets to a purpose before an inheritance, including retirement income, healthcare contingencies, and legacy gifts.  Clear labels assign a course of action and encourage heirs to invest assets appropriately from day one.
• Right-size risk to time horizon: A surviving spouse may need a portfolio to last 25–30 years. Equity exposure, bond laddering, and guaranteed income tools should align with the necessary timeframe for long-term goals rather than responding to short-term market noise and fluctuations.
• Eliminate cash drag in transitions: Beneficiaries should create a playbook for rollovers, inherited IRAS, and trust distributions, including interim parking in short-term instruments and a dated schedule to deploy into target allocations.
• Document decision authority:  Couples should build a durable plan that survives the first death with updated beneficiary designations, transfer on death (TOD) registrations, account aggregation, and a clear investment policy statement. This can help smooth the transfer for widows when the time comes.
• Match portfolio values without sacrificing discipline: As more women direct family wealth, increased support often arises for sustainability, community giving, and other charitable causes. Couples should integrate values-based investment filters and donor-advised fund strategies inside a diversified framework to preserve long-term return potential.

The headline is simple: Substantial wealth is moving to women, who already demonstrate strong leadership, spending power, and investment participation. With a written plan and the proper structure, those dollars can help deliver a sense of security, flexibility, and generational impact. For a personalized roadmap before an inheritance arrives or after, connect with SHP Financial for a complimentary review of your portfolio, tax and estate documents, and income plan, and put your next dollar to work with confidence.