Women are set to inherit trillions of dollars in the great ‘horizontal wealth transfer’

In the coming years, up to $9 trillion is expected to be transferred to spouses and partners as part of a phenomenon termed "the horizontal wealth transfer," according to a new UBS report. Over the next 20 to 30 years, baby boomers and older generations will pass down approximately $84 trillion to charity and family, with younger generations like Generation X, millennials, and Generation Z receiving the majority. Because women generally outlive men, much of this wealth transfer will initially go to surviving spouses, predominantly women, before eventually reaching the next generation.

The report highlights that the money will be transferred from one spouse to another within the same generation. This intra-generational transfer, or "horizontal wealth transfer," is expected to reshape wealth management, investing, and luxury spending, areas traditionally dominated by men. Most significant horizontal wealth transfers will occur in America, where over 43 million people aged 75 and above possess over $50 trillion in combined transferrable wealth. The typical inheriting spouse will manage this wealth for about four years before passing it on.

This shift contributes to the "feminization of wealth," with women's incomes and inheritances increasing, making them a growing segment of high net-worth investors and consumers. Women now constitute over 11% of the world's millionaires, a figure that has nearly doubled since 2016. Wealth management is seeing significant changes as well, with 45% of UBS’s clients now being women. A McKinsey report predicts that women will control most of the $30 trillion in baby boomer wealth by 2030, signaling a profound shift in financial decision-making. Additionally, luxury brands and philanthropy are adapting to this new dynamic, with increased focus on women’s preferences and causes.

For more information see Robert Frank "Women are set to inherit trillions of dollars in the great ‘horizontal wealth transfer’", CNBC, July 12, 2014.

Special thanks to David S. Luber (Florida Probate Attorney) for bringing this article to my attention.