In the coming decade, experts predict massive shifts in the ownership of wealth across gender lines. This transfer of wealth from men to women may be driven by many factors, including generational transition, a rise in female executives, an increase in female household breadwinners, and environmental factors as seen in the wake of COVID-19. Each of these individual circumstances drives many different results as women begin to see a change in the primary control over generational and earned wealth in the coming years.
Gone are the days of exclusively male-oriented roles and men maintaining the position of household breadwinner. Increases to females in the workforce, pioneered by previous generations in the 1960s and 70s, equate to more competitive salaries and a continued progression to financial equality with male counterparts. Higher paying jobs, coupled with changes to previous cultural norms speak to natural shifts of household financial management to women. These changes present a need to allow women more resources and opportunities to learn how to best manage their wealth and financial situations, while they have the energy and desire to do so.
With changes to dated cultural norms, a natural progression of Baby Boomers from acting professional roles into retirement has also begun–and is only expected to grow with time. Longer average female life spans mean that women from a generation where the “man of the house” was the primary breadwinner may see estate transitions. This indicates that older generations of women may come into wealth similarly to professional women of younger ages, albeit through different means. The movement of Baby Boomers into retirement also means a higher concentration of Gen X and Millennials in professional leadership positions, leading to even more financial opportunities than before.
Social growth has not been the only change to demonstrate that even the most prepared individuals may not know what lies ahead. New challenges associated with the COVID-19 pandemic have presented disruptions in even the most carefully planned financial strategies. Preparedness and financial literacy are key to be able to remain adaptable through a myriad of unknowns.
It has become increasingly clear that while many of these factors, such as professional growth into an executive role, are planned and striven for, others are not. To allow females to best prepare for the shift into financial control, preparedness is key. The understanding of financial strategies and best practices coupled with the assistance of a trusted financial advisor allows females to best steward the wealth they manage.
Securities and investment advisory services offered through qualified registered representatives of MML Investors Services, LLC. Member SIPC (www.SIPC.org). Gambin Financial Group is not a subsidiary or affiliate of MML Investors Services, LLC or its affiliated companies. Supervisory Office 5001 Louise Drive, Suite 300 Mechanicsburg, PA 17055, 717-791-3300.