Study: Women Invest Inherited Wealth Less Often Than Men , and Later Regret It

It is no secret that we are living in an era of massive wealth transfers. According to asset manager Capital Group, an estimated 124 trillion US dollars will be passed down over the next two decades, a truly monumental shift of assets. Naturally, women will inherit a significant share of this wealth. What is surprising, however, is that many wealthy women hesitate to invest their inheritance effectively, according to a new Capital Group study.

A Clear Investment Gap Between Women and Men
The study surveyed 600 high-net-worth individuals across Europe, the Asia-Pacific region, and the United States to understand how they handle inherited wealth. The findings revealed a clear investment gap between women and men.

Key differences emerged:

• Many women hesitate to invest at all.
• Women are less likely to seek traditional financial advice.
• Later in life, many women regret not having invested more of their inheritance or not having invested it properly.

Later in life, many women regret not having invested more of their inheritance or not having invested it properly.
“It is time for women to take control of their financial future,” says Alexandra Haggard, Head of Asset Class Services for Europe and Asia-Pacific at Capital Group. “Our survey shows that while many women save more and invest less, some later regret not having put more of their inheritance to work. The good news is that it is never too late to start.”

Detailed Findings of the Study
The study’s results paint a striking picture:

• Women invest a significantly smaller share of their inheritance than men (26.4 percent compared to 36.2 percent), suggesting missed opportunities.
• Forty percent of women wish they had invested more of their inheritance, compared to thirty percent of men.
• Women keep 14.3 percent of their inheritance in savings, while men keep 11.1 percent.
• On average, women spend more of their inheritance than men (15.4 percent versus 11.3 percent).
• Women are twice as likely as men (27 percent versus 15 percent) to seek investment advice from social media or “finfluencers” rather than professional advisors.
• Sixty-eight percent of women believe that AI and other technologies will improve financial advice through stronger personalization and easier access, compared to 59 percent of men.

Alexandra Haggard continues, “Many women turn to social media and ‘finfluencers’ for financial guidance. However, as their financial situations become more complex, professional advice becomes increasingly important. With the ongoing transfer of wealth, the wealth management industry must adapt to women’s growing influence in investment decisions. At Capital Group, we work with wealth managers to help their female clients invest with confidence and build long-term wealth through thought leadership, events, and education.”

Watch the video for more insights on women and wealth management.
One particularly striking observation from the video is that seventy percent of women who inherit after their husband’s death switch banks within a year. This suggests that many banking relationships were previously focused primarily on the male partner.

Foto: Alexandra Haggard, Head of Asset Class Services, Europe and Asia-Pacific bei Capital Group, © Capital Group

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