The Role of Women in the Great Wealth Transfer

We live in an extraordinary time for women and wealth. A recent report from Cerulli Associates estimates that over the next few decades, an unprecedented $124 trillion in wealth will transfer from Baby Boomers to their heirs, charities, and spouses, marking one of the greatest financial redistributions in history. Among this massive shift, approximately $40 trillion will flow directly to widowed women, placing them at the center of this economic transformation.

This moment, known as the Great Wealth Transfer, is more than just a redistribution of finances. It’s an opportunity for women to step into economic power, redefine financial independence, and create legacies that align with their personal values. However, it also comes with challenges and crucial decisions that require preparation and a proactive approach.

Insights from our book, How Money Works for Women: Take Control or Lose It, serve as an important tool during this time, offering strategies to address these challenges and inspire women to take control of their financial futures.

Why the Great Wealth Transfer Is a Turning Point for Women

For decades, women have traditionally played secondary roles in financial management, often leaving investments, estate planning, and major financial decisions to their partners. While this dynamic is evolving, societal expectations and systemic barriers have contributed to gaps in financial literacy and economic confidence among women.

The Great Wealth Transfer offers a unique opportunity to break those patterns. With $40 trillion set to transfer to widowed women alone, many will find themselves managing significant assets for the first time. Whether it’s deciding how best to preserve wealth, invest with intention, or support future generations, this newfound responsibility can feel overwhelming.

But it doesn’t have to be. With the right tools, mindset, and support, women can take ownership of their financial destinies and turn this monumental shift into a pathway for empowerment.

Challenges Women Face During Wealth Transfers

While this period represents an opportunity to build financial independence, it’s equally important to recognize the challenges that women may face as wealth recipients and managers.

1. Navigating Emotional and Financial Complexities

Wealth transfers often occur during times of great loss, such as the death of a spouse. Managing financial transitions while navigating grief is nothing short of daunting, especially if finances were not previously a primary focus.

Taking time to process emotions is essential, but so is ensuring financial decisions are approached with care and clarity. Women in this position should seek support from trusted advisors or professionals to help manage the immediate complexities while planning long-term strategies.

2. Knowledge Gaps in Financial Literacy

Many women inherit wealth without prior experience handling investments, taxes, or estate matters. Studies consistently show gaps in financial literacy between men and women, often as a result of traditional household dynamics or societal norms that discourage women from engaging in financial education.

Bridging this gap requires a proactive approach to learning. Empowerment begins with understanding the basics of personal finance, from differentiating between stocks and bonds to knowing the importance of diversifying investments.

3. Overcoming Stereotypes and Expectations

Society has long placed pressure on women to focus their wealth on caregiving or family obligations rather than personal aspirations or long-term financial goals. While supporting loved ones is undoubtedly noble, it’s not the sole purpose of financial resources.

Breaking free from these expectations enables women to wield their wealth in ways that also ensure their security, develop independence, and drive meaningful social impact. Women must give themselves permission to prioritize their own financial health and the goals that matter most to them.

Practical Steps to Take Control of Your Wealth

While challenges remain, the tools for success are well within reach. Here are practical strategies women can use to manage, preserve, and grow their wealth during the Great Wealth Transfer.

1. Educate Yourself and Take an Active Role

One of the first and most empowering steps is to gain knowledge about your finances. This includes understanding existing assets (investments, savings accounts, and real estate), liabilities (debts or loans), and any major estate plans or taxes tied to your inheritance.

Investing in financial education doesn’t have to be overwhelming. Start small by learning the basics of trusts, estate planning, investment strategies, and budgeting. If finance feels intimidating, seek resources specifically tailored to women, such as our How Money Works for Women book, which makes financial concepts accessible and actionable.

2. Choose Advice That Align With Your Vision

Navigating significant financial responsibilities is not something you have to do alone. Building a team of trusted professionals can make all the difference. Seek a financial professional who understands your unique needs and listens to your concerns, rather than taking a one-size-fits-all approach.

The good ones will communicate clearly, help you clarify your goals, and empower you to make informed decisions. Ask questions during consultations and don’t be afraid to interview multiple candidates until you find someone who aligns with your priorities for yourself, your family, and your values.

3. Clarify Your Financial Priorities

It’s important to think about what you want to achieve with your wealth. Some women may prioritize creating a financial safety net, while others may focus on legacy-building through philanthropy or investing in family businesses. Whatever your goals, defining your priorities will help guide your decision-making.

Consider factors like retirement planning, children’s education, charitable contributions, and personal pursuits. By outlining your vision, you create a framework that ensures your wealth works for you—not the other way around.

4. Update or Draft an Estate Plan

If you’ve inherited significant assets, or are managing finances solo for the first time, creating or updating your estate plan is crucial. A comprehensive estate plan ensures that your wealth is distributed according to your wishes and helps avoid unnecessary complications for future heirs.

Tools like trusts or donor-advised funds can also help minimize tax liabilities while supporting your long-term goals. Whether you plan to distribute wealth among your family, invest in philanthropy, or both, having these plans in place will grant you greater control and peace of mind.

5. Align Your Wealth With Your Values

One of the most fulfilling aspects of managing wealth is the ability to align your money with your beliefs. You may want to contribute to environmental initiatives, support women-owned businesses, or give back to underserved communities.

Impact investing, which focuses on social or environmental returns alongside financial ones, is becoming increasingly popular among female investors. Taking this approach allows you to make your wealth not just a tool of personal and family security, but also a driver of social good.

6. Build a Financial Legacy

Beyond immediate needs and goals, think about the legacy you want to leave for future generations. For example, creating educational funds for your children or grandchildren ensures lasting support for loved ones, while contributing to charitable causes allows you to give back to your community in meaningful ways.

Remember, your legacy is not just about the money you leave behind but also the values and priorities you demonstrate through your financial choices. Taking control of your finances now ensures your wealth will reflect the principles that matter most to you.

Trust Yourself and Take Control

The role of women in the Great Wealth Transfer is more than just passive receivership. It’s about becoming informed, making intentional decisions, and taking ownership of the financial opportunities and responsibilities that come your way.

As emphasized in our book How Money Works for Women, education and empowerment are key to navigating this period of change successfully. By taking deliberate steps to educate yourself, align your resources with your goals, and build a trusted support network, you can transform this monumental transition into a moment of empowerment.

The wealth is real; the opportunity is unparalleled. You have the tools and capabilities to make impactful choices that protect your future, enhance your independence, and leave a legacy as bold as you are. This era is a testament to what women can achieve when they take control of their financial destinies. Go forward confidently, and own your story.