![]() ![]() For example, 44 percent of companies have three or more women in their C-suite, up from 29 percent of companies in 2015.Īll these changes represent a critical inflection point for the financial-services industry. Indeed, McKinsey’s 2019 Women in the Workplace survey indicates that there has been a significant increase in the share of women in corporate America-and in the upper echelons of management. And more women than ever are the family breadwinners, spurring growth in their investable assets. Compared with five years ago, 30 percent more married women are making financial and investment decisions, according to recent McKinsey research on affluent consumers. After years of playing second fiddle to men, women are poised to take center stage.Īlong with these demographic changes among older women, younger affluent women are getting more financially savvy. This analysis includes US industry surveyed households with $100,000 to $10 million in personal investable assets. PriceMetrix is an integrated data and business intelligence platform for the wealth management industry. By 2030, American women are expected to control much of the $30 trillion in financial assets that baby boomers will possess-a potential wealth transfer of such magnitude that it approaches the annual GDP of the United States. In the United States, women outlive men by an average of five years, and heterosexual women marry partners roughly two years older than they (Exhibit 2). As men pass, many will cede control of these assets to their female spouses, who tend to be both younger and longer lived. Furthermore, two-thirds of baby-boomer assets are currently held by joint households (where a female is present but not actively involved in financial decisions), meaning that roughly $11 trillion in assets are likely to be put into play. 2 Federal Survey of Consumer Finances respondents reported at least $100,000 in wealth and were 25 to 75 years old. Today, roughly 70 percent of US affluent-household investable assets are controlled by baby boomers. The biggest driver of this shift is demographics. But over the next decade, large sums of money are expected to change hands. Today, women control a third of total US household financial assets-more than $10 trillion (Exhibit 1). But this is about to change.īy 2030, American women are expected to control much of the $30 trillion in financial assets that baby boomers will possess-a potential wealth transfer of such magnitude that it approaches the annual GDP of the United States. Key financial decision makers are those who indicated making all or most investment and financial decisions or indicated high levels of familiarity when decision making is shared equally in relationship. Total respondents included 2,889 women and 6,545 men. 1 McKinsey affluent consumer research survey, conducted in conjunction with Dynata, 2018 n = 9,434 individuals aged 25 to 75 with investable assets between $100,000 and $5 million, including 2,000 respondents between $1 million and $5 million. In two-thirds of affluent households in the United States, men are the key financial decision makers. Not only are the vast majority of financial advisers men (female representation is just 15 percent across channels), but also the customers making financial decisions are far more likely to be men than women. The resulting insights, highlighted in this article, provide a rich view into affluent women as investors.įor decades, wealth management has been a male-dominated endeavor. We also leveraged analysis from McKinsey’s proprietary PriceMetrix solution. Firms can then diversify their offerings and commit to a systematic approach to winning with women.Īs part of recent McKinsey research on affluent consumers, we surveyed over 10,000 affluent investors, nearly 3,000 of them female financial decision makers. To succeed, firms will need to deeply understand women’s differentiated needs, preferences, and behaviors when it comes to managing their money. Attracting and retaining female customers will be a critical growth imperative for wealth management firms. ![]()
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