Investing and Retirement The changing role of women in managing family wealth

For decades, a steady shift in financial and economic power has been underway. Today, around 34% of total financial assets (about $18 trillion) are controlled by women—up from 31% in 2023. McKinsey analysts predict that figure will increase to $34 trillion by 2030 as women inherit more funds^{Disclosure 1} in the great wealth transfer from their baby boomer parents. Also, because women also live longer than men, they are likely to outlive their partners and become the primary stewards of household wealth.

According to another McKinsey report, women are less likely to take larger financial risks for potentially higher returns when it comes to investing.^{Disclosure 2}

In addition, the report notes that, while outperforming the stock market would be a “nice-to-have,” saving enough money for life goals, such as retirement or medical care, is of greater value to women investors compared to men.

While focusing on such clear-cut financial goals, women also emerge as more conservative, less impulsive investors compared to men. The result? Women outperform men in overall investment returns while taking fewer risks.^{Disclosure 3}

Women don’t just think differently about wealth and retirement; they also face a very different retirement reality. Women’s incomes still lag those of men for a variety of reasons (for example, the gender pay gap and critical earning years lost to child-rearing and caregiving). Greater longevity means women need to save even more for retirement than men.

Longevity also brings with it higher lifetime healthcare expenses, as well as an increased probability of needing some sort of long-term care. In fact, a woman retiring today can expect lifetime insurance premiums and out-of-pocket medical expenses in excess of $600,000—not including the cost of long-term care.^{Disclosure 4}

Regardless of whether you’re just starting your wealth journey or taking over the financial reins due to divorce or the death of a loved one, there are certain qualities in an advisor you should seek out. Make sure they’re more focused on making a plan, rather than selling you investment products.

The financial plan you developed with your wealth advisor should be flexible—when your goals change, you may need to make adjustments.

Finally, it’s vital to be transparent with your advisor. They need to understand your concerns and goals. From there, they can identify where and how to focus your planning needs—including your personal history with money, your family situation, your personal goals, and your long-term care plans. It’s more than a plan; it’s an ongoing conversation.

Financial-planning confidence comes from truly understanding your complete financial picture, and women have historically avoided conversations about wealth—especially long-term planning.

Being paid less. Moving in and out of the workforce. Living longer. When it comes to saving for retirement, women face a perfect storm. A Truist wealth advisor can help you navigate that storm successfully and reach your retirement goals while ensuring your financial plan adapts to changing medical and lifestyle needs.