Women’s Wealth Is Rising: What’s Driving This Trend?

The rising wealth of women represents a significant economic trend globally. This shift reshapes financial landscapes and influences economic dynamics. Understanding this progression is important for comprehending contemporary financial trends, signaling a new era of economic influence and participation.

The Current Landscape of Women’s Wealth

Women presently control over $10 trillion in U.S. household financial assets, representing approximately one-third of the total. Projections indicate this share could reach $30 trillion by 2030. This represents a dramatic increase from a decade ago and signifies a major transfer of financial influence.

Globally, women are increasing their financial power. In the European Union and the United States, women currently control about one-third of all retail financial assets, a figure expected to rise to between 40 to 45 percent by 2030. Between 2018 and 2023, global financial wealth increased by 43 percent, while wealth controlled by women rose by 51 percent, indicating a faster pace of growth for female-controlled assets. This growth underscores a significant rebalancing of financial power.

The share of investable assets under women’s control is also expanding. By 2030, women are projected to manage approximately $34 trillion, or about 38% of investable assets. This growing financial influence is visible across various wealth segments, including ultra-high-net-worth individuals. The proportion of ultra-high-net-worth women, defined as those with at least $30 million in assets, increased to 11% in 2023 from 6.5% in 2010. This demonstrates a broader trend of women accumulating significant financial resources.

Despite these advancements, women remain less likely than men to engage with financial advisors, leading to a large pool of unmanaged assets. An estimated 53 percent of assets controlled by women are currently unmanaged, compared to 45 percent of assets controlled by men. This highlights an opportunity for increased financial engagement and professional guidance. The rising financial power of women is transforming the financial industry, compelling institutions to adapt their services to meet the evolving needs of this demographic.

Key Drivers Behind Women’s Financial Growth

Increased participation and advancement in the workforce drive women’s financial growth. Women now comprise nearly half of the U.S. labor force. Projections show continued growth in the number of women in the labor force, particularly those over 25. This sustained presence in the workforce leads to greater earned income and wealth accumulation.

Higher educational attainment among women contributes to their increased earning potential. Women have consistently outpaced men in college completion. For example, 47% of U.S. women aged 25 to 34 hold a bachelor’s degree, compared to 37% of men in the same age group. This educational advantage leads to enhanced career opportunities and higher lifetime earnings.

The growth in women-owned businesses and entrepreneurial ventures supports this trend. As of 2024, women-owned businesses account for 39.2% of all U.S. enterprises, employing 12.9 million workers. These businesses generate $3.3 trillion in annual revenue. Between 2019 and 2024, the number of women-owned businesses increased by 17.1%, with their revenue growing by 53.8%, outpacing men-owned businesses in terms of firms, employment, and revenue.

Changes in inheritance patterns and wealth transfer contribute to women’s rising wealth. Women tend to live longer than men, often becoming the surviving spouse who inherits family assets. This demographic reality means a portion of the “Great Wealth Transfer” from older generations will flow to women. Research indicates women are 45% more likely to have inherited assets than men.

Increased financial literacy and engagement in investing among women drive their financial growth. Recent trends indicate growing confidence and participation in financial literacy and investing. For instance, 71% of women now hold investments in the stock market. This growing engagement, particularly among younger generations, allows women to accumulate wealth through investment returns.

Demographic shifts, such as women living longer, impact their financial planning. Women have a longer life expectancy than men. This longevity necessitates more robust retirement savings and long-term financial planning. They need to plan for a longer retirement and potential healthcare expenses.

Approaches to Wealth Creation and Management for Women

Earned income is a foundational component of wealth building. This includes salaries from employment, professional fees for specialized services, and other income streams derived from their increasing participation and advancement across various industries. Consistent employment allows for regular contributions to savings and investment vehicles, benefiting from compounding growth over time. The ability to generate steady income provides the capital necessary for initial investments and ongoing financial planning.

Investment portfolios are a significant avenue for wealth growth. Women are increasingly engaging with various investment vehicles, including stocks, bonds, mutual funds, and real estate. While some studies have historically indicated a tendency towards more conservative investments, there is a growing trend of women, particularly younger generations, actively participating in the stock market. Investing in a diversified portfolio allows for capital appreciation and income generation, contributing to overall net worth. The strategic allocation of assets across different classes helps manage risk while pursuing growth objectives.

Business ownership is a powerful mechanism for wealth creation. Profits generated from entrepreneurial endeavors directly contribute to personal wealth. Women-owned businesses are a growing force in the economy, with their collective revenue reaching trillions of dollars annually. This direct control over business income and assets provides a flexible and often highly rewarding path to financial independence. Investing profits back into the business or distributing them as personal income allows women entrepreneurs to build substantial wealth.

Inherited assets play a prominent role in women’s overall financial standing. Due to factors such as longer life expectancies, women are more likely to inherit wealth from spouses, parents, or other relatives. This transfer of wealth can augment existing assets, providing a boost to financial resources. Managing inherited assets often involves careful consideration of tax implications, such as potential estate taxes or income taxes on distributions from inherited retirement accounts. Seeking professional guidance for optimizing the tax efficiency of inherited wealth is a common approach.

Financial planning considerations for women often incorporate unique aspects of their financial journeys. Career breaks for caregiving responsibilities, such as raising children or caring for elderly parents, can impact lifetime earnings and retirement savings. Women may need to plan for these potential interruptions by maximizing contributions to retirement accounts when employed or exploring options like spousal Individual Retirement Accounts (IRAs). The potential for reduced Social Security benefits due to fewer years of earnings or lower average wages necessitates proactive savings strategies.

Longevity is a critical factor influencing women’s approach to financial planning. Since women generally live longer than men, their financial plans must account for a longer retirement period and potentially higher healthcare expenses in later life. This often translates into a need for a larger retirement nest egg and careful consideration of long-term care insurance or Health Savings Accounts (HSAs) to cover medical costs. Planning for a longer financial runway encourages a focus on sustained investment growth and diligent savings habits throughout their working lives.

Women’s financial planning emphasizes long-term goals and capital protection. They often prioritize achieving specific financial objectives over short-term investment performance. This approach can lead to a more stable and resilient financial strategy. Women are increasingly inclined to align their investments with personal values, such as environmental sustainability or social impact, which can influence their portfolio choices. This values-based investing reflects a broader consideration of how their wealth can contribute to societal well-being.