A wealth windfall for women is well and truly underway according to a new study from J.P. Morgan Wealth Management, with some $9 trillion in assets expected to be transferred from spouses to their partners over the next few decades.<\/p>\n
While the 13-figure sum will prove significant for those who receive a share of it, women say they\u2019re not relying on the cash to achieve their goals. In fact, three in four women say they\u2019re well on track to achieve their financial milestones without receiving any inheritance from family or spouses.<\/p>\n
The \u201csideways succession\u201d of spousal inheritance forms one part of the wider \u201cGreat Wealth Transfer\u201d picture. Studies have found that over the next 20 to 30 years as much as $124 trillion will be passed down<\/a> from older generations to their younger counterparts, with baby boomers\u2014people born between 1946 and 1964\u2014identified as the wealthiest generation in history. As these individuals begin passing on their wealth, some will go immediately to their Gen X, millennial, and Gen Z successors, but some will go to spouses.<\/p>\n In December, UBS put the <\/a>spousal transfer<\/a> figure at $9 trillion. Women are statistically more likely to outlive their husbands. In the U.S., men live to an average age<\/a> of 75.8 years while women live to 81\u2014a split further divided by a 2.2 year age difference<\/a>, on average, in husband and wife partnerships.<\/p>\n But a recent study from J.P. Morgan Wealth Management found the vast majority of women aren\u2019t relying on the funds. And while spending the money on travel is their top choice, what they\u2019re doing in reality is investing it.<\/p>\n The report, based on 1,045 American adults age 25 and older with at least $25,000 in investable assets, found 63% of boomer women had already received an inheritance. For Gen X, 45% expect to receive an inheritance, and for Gen Z and millennial women, 39% are expecting an inheritance.<\/p>\n However, 93% of the women interviewed who are expecting an inheritance aren\u2019t relying on the money to achieve their financial goals. The report adds the women \u201care proactively building wealth independently, with\u00a0three in\u00a0four women overall feeling confident they are on track\u00a0to meet their objectives.\u201d<\/p>\n And while men currently are the most confident in their portfolio strategy, that may well change with the influx of cash to women. In 2023 a study from BNY Mellon Investment Management found men had more invested in their 401(k)s, their IRAs, and their brokerage accounts\u2014be it stocks, bonds, mutual funds, ETFs, and so on. Of course, some of this comes down to the wage gap, but it is also a question of confidence: 45% of the women surveyed said investing money in the stock market, be it through an individual security or a fund, is too risky.<\/p>\n The J.P. Morgan study suggests that may be about to change: 45% of the women who have already inherited wealth have invested it, while 43% have used it to pay off debt. A further 41% are spending it on travel, 33% to support family and friends, and 28% are donating it to charity.<\/p>\n Women\u2019s roles in the economy<\/p>\n The economic power of women is also changing. Traditionally, women have been in charge of households\u2019 purse strings and are responsible for more discretionary spending than their male counterparts. This makes them a powerful cohort of consumers and a key barometer in the health of the economy.<\/p>\n