How Are Women In Wealth Management Changing the Industry?
Women in wealth management are growing their influence
Women in wealth management are continuously driving new market trends and expanding their influence. It wasn’t long ago when the industry was dominated by men, with less than 15% of investors being women.
Women are now expected to control a massive $93 trillion in global assets by the end of the 2023. In North America, they account for roughly 40% of all privately held wealth.
People in general are becoming financially savvy and opening their minds to various investment opportunities — a trend that’s widely credited to technological advancements and the rise of digital wealth management.
From a more analytical sense, wealth management statistics are affected by demographics. In 2020, most affluent-household investable assets in the US were in the hands of baby boomers, with about 66% of those assets in joint households (represented by a male spouse). Women are expected to control $30 trillion of those assets by 2030.
Little over half of affluent-household investable assets in the US were still in the hands of baby boomers by the end of 2021, equating to about $71.l6 trillion in wealth. Economists estimate a sizable wealth transfer of approximately $30 trillion in the coming decade. And with men are ceding control of their assets to women partners and family members, women are expected to inherit most of the transferable wealth.
More notably, there is no longer a traditional household dynamic for wealth management as gender statistics in education, finance and employment continue to evolve. In fact, about 13% of women learn about investing from their partners and become motivated to open accounts themselves.
What other changes are women making in wealth management?
The growing success for millennial women in wealth management (born 1981-2000) is yet another sign the future looks bright for women investors. On average, they gain access to the highest earning levels of asset ownership faster than previous generations.
There are also signs showing women have the confidence to explore various wealth management strategies. Most experienced women investors use more than one method for accumulating wealth.
Women-led investments grew significantly in 2021. Around this time, 67% of women investors were discovered to have money invested in sources other than retirement plans. It was a 23% leap up from 2018.
Additional studies have discovered women tend to get better returns (as much as 0.4% to almost 1%) from investing than men even though they are less active as traders. Women also tend to be passion-driven and are likely to consider environmental and social factors when making investment decisions.
As many women successfully find ways to build wealth, there are even more that have yet to find their financial footing. Roughly 39% of adult women still have no retirement strategy in 2023, and 33% lack self-assurance and doubt their ability to make general investment decisions.
EXOS can help you make your own place in wealth management history
As the last day of #womenshistorymonth comes to a close, we need to remember that it’s up to each of us to make our own place in history.
EXOS promotes diversity in their leadership and encourages equal opportunities for all people. It’s a critical time for everyone to invest in their future, and we support you and your financial well-being above all else. Contact us so we can discuss your options and help you get started today.
