The nice wealth switch refers back to the $124 trillion anticipated to shift from Child Boomers and older generations to their heirs by 2048. That is greater than the entire world GDP of $115 trillion for 2024.
And one key demographic stands to learn probably the most from the large wealth switch: ladies.
A brand new report from the Financial institution of America Institute estimates that near $100 trillion of the $124 trillion switch will go to ladies, with $47 trillion shifting to ladies in youthful generations as inherited wealth and $54 trillion going to surviving spouses, 95% of whom are anticipated to be ladies.
“Ladies will quickly management more cash than ever earlier than — and the way they use this cash is anticipated to have a profound influence,” the research reads.
An older 2020 research from consulting agency McKinsey discovered that, by 2030, American ladies are projected to regulate about two-thirds of all personal wealth within the U.S., representing the largest wealth switch by gender in historical past.
In keeping with Financial institution of America analysis estimates, there are 1.4 billion ladies on the earth between 50 and 70 years previous, with the entire anticipated to develop 47% to 2.1 billion by 2050. Ladies in that age group have “extra wealth, independence, and alternative” than ladies from earlier generations, the researchers observe.
Because of the good wealth switch, Financial institution of America predicts elevated demand and better spending on companies, merchandise, and experiences tailor-made towards ladies. Inside knowledge collected by the financial institution confirmed that girls spent extra on discretionary and necessity objects than their male counterparts final yr.
Ladies additionally characterize 85% of solo vacationers, with Financial institution of America analysis exhibiting that tour operators, cruise traces, and journey advisors have reported rising demand from ladies. River cruise firm Uniworld introduced an all-female route for August 2025, becoming a member of different cruise traces like Aqua Expeditions and Movie star Cruises in providing women-only choices.
“The nice wealth switch is making ladies richer,” Financial institution of America researchers wrote.
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Associated: 3 Methods to Put together Your self for the Nice Wealth Switch
