Widowed women are set to inherit the most over the coming decades, finds new research from Cerulli Associates.
According to the “Cerulli Report—U.S. High-Net-Worth and Ultra-High-Net-Worth Markets 2024,” $54 trillion is expected to transfer to widows, of which over 95% are women. That’s a little less than half of the $124 trillion anticipated to move in one of the greatest wealth transfers in history.
Specifically, Cerulli estimates that widowed women will inherit nearly $40 trillion in wealth “horizontally”—or intra-generationally—between 2024 and 2048. Women in younger age groups are expected to receive $47 trillion in wealth intergenerationally.
These findings present an opportunity for advisors to establish relationships with the client’s household, and not just the client themselves. This can include involving family members in meetings to establish trust beforehand. According to Cerulli, nine out of 10 high-net-worth practices say that clients’ partners are involved in the financial planning process.
“When husbands pass away before their wives, finances are understandably the last thing the surviving spouse wants to think about,” says Chayce Horton, senior analyst at Cerulli. “This is why Cerulli recommends establishing relationships with all members of the client household as early as possible in the client lifecycle.”
Creating partnerships with spouses is just the first step to forming a connection, the report notes. Women investors were likely to have different advisory preferences than men, like wanting to speak first about financial planning rather than investments and preferring to incorporate philanthropic and sustainability goals in their strategies.
As a result, advisory firms should establish expansive service menus that can cater to multiple benefits and needs and ensure their hiring practices are reflective of both current and prospective clients.
“To address the existing gap in women-focused advice, some firms have begun to make strides by establishing recruiting and mentoring programs for women advisors and offering clients dedicated resources that emphasize topics such as financial planning and philanthropy,” says Horton. “Cerulli believes that firms that can provide direct support for women will have a tailwind for decades to come.”
SEE ALSO:
Generations to Experience Wealth Transfer Differently
Millennials Set to Inherit Majority of Assets in Great Wealth Transfer
Amanda Umpierrez is the Managing Editor of 401(k) Specialist magazine. She is a financial services reporter with over six years of experience and a passion for telling stories and reporting news. Amanda received her degree in journalism and government and politics at St. John’s University. She is originally from Queens, New York, but now resides in Denver, Colorado with her partner. In her free time, Amanda enjoys running, cooking, and watching the latest drama show.
