Will the Great Wealth Transfer finally close the Gender Gap in financial power?

A Golden Opportunity for Advancing Gender Equality

By Ray Tubman, CEO HeirWealth

Historically, wealth has been concentrated in the hands of men, with women often relegated to secondary roles in financial decision-making. But the tide is turning and just as women continue to break all sorts of records in sports, leadership and pay, we’re also on the cusp of witnessing one of the largest economic events of our time – the intergenerational wealth transfer which has the potential to significantly advance gender equality.

As the baby boomers among us age, a large portion of our wealth is set to be transferred to spouses, daughters, and granddaughters.  This is something that I am personally very conscious of as a husband and Father. This shift is particularly significant in Australia, where women are projected to inherit up to 65% of the wealth.

This transfer of wealth into the hands of women has profound implications. It places women in a stronger position to influence financial decisions, invest in their futures, and support causes that matter to them. Moreover, it challenges the long-standing gender norms.

But despite this promising shift in wealth distribution, the latest findings from the Financy Women’s Index (FWX) highlight that Australia still has a long way to go in achieving true gender financial equality. Over the past year, the FWX has improved by 2.36 points, reflecting the incremental progress Australian women continue to make across key indicators. Moreover, the historic achievements of Australian women in the Paris Olympics demonstrate the potential for shifting gender norms in other areas of society.

However, the intergenerational wealth transfer presents an opportunity to counteract these setbacks. With more financial resources and digital tools at their disposal, women can assert greater control over their economic futures. This newfound financial power can be used to challenge outdated gender norms, support gender equality initiatives, and invest in businesses that prioritise diversity and inclusion.

Moreover, as women take on more prominent roles in wealth management and financial decision-making, they are likely to prioritise issues that have traditionally been overlooked, such as pay equity, workplace flexibility, and social responsibility. This shift could lead to broader societal changes that benefit not only women but also the economy as a whole.

The intersection of the great wealth transfer and gender equality presents a transformative opportunity for women to shape the future. By challenging outdated gender norms and investing in a more equitable society, women can ensure that this wealth transfer benefits everyone. As we continue to monitor progress through indices like the FWX, it is clear that while the road to equality is long, the destination is within reach.

This article was first published in the June Quarter Financy Women’s Index report, of which HeirWealth is a sponsor to support financial inclusion.