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Millennial Women to Get Richer As $80 Trillion Generational Wealth Transfer Inbound

Termed as the "feminization of wealth," this phenomenon heralds a transformative era, particularly for millennial women.
Cover Image Source: Millennial Women | Unsplash | Photo by Priscilla Du Preez
Cover Image Source: Millennial Women | Unsplash | Photo by Priscilla Du Preez

In the looming landscape of economic transition, a seismic shift is anticipated, poised to reshape the dynamics of wealth distribution. Termed as the "feminization of wealth," this phenomenon heralds a transformative era, particularly for millennial women. A recent study conducted by Ellevest, a platform dedicated to investment and financial literacy, sheds light on this burgeoning trend, highlighting the impending empowerment of women in the economic realm.

Image Source: Unsplash | Alexis Brown
Image Source: Unsplash | Photo by Alexis Brown

The research delved into wealth distribution patterns, gender pay differentials, and investment behaviors among women. Through a survey spanning February 2 to February 7, and encompassing 2,041 individuals aged 18 to 69 with significant financial standing, mind-blowing insights emerged.

Remarkably, 94% of women voiced their conviction that their economic potency is undervalued. This sentiment resonates as projections indicate a monumental transfer of wealth, potentially reaching $80 trillion over the next two decades, primarily between generations. Notably, women stand poised to reap substantial benefits from this transition, particularly millennial cohorts.

One important factor contributing to this anticipated wealth accrual is the longevity advantage typically enjoyed by women in comparison to men. As time unfolds, it's envisaged that women will inherit substantial sums from baby boomers and male spouses, amplifying their financial portfolios significantly.

Learn from this Reddit user the tricks on how to earn heaps of money|Pexels|Photo by Pavel Danilyuk
Image Source: Pexels | Photo by Pavel Danilyuk

Foreseeing this impending financial windfall, a palpable surge in women's financial confidence and inclination towards investment is evident. Such a paradigm shift is poised to catalyze a broader economic upswing, with women expected to wield unprecedented financial clout.

Projections suggest that by 2030, American women will oversee a staggering $30 trillion, eclipsing the national GDP itself. This surge in women's wealth stands to diminish the entrenched gender wealth gap, a chasm far wider than the well-documented gender pay differential.

Business Models that Every Major Company Uses. Pexels | By Christina Morillo
Image Source: Pexels | Photo by Christina Morillo

Ellevest's findings reveal a promising trajectory, with 45% of surveyed women either having received or anticipating a financial windfall, typically averaging around $300,000. Such influxes of capital have been instrumental in doubling women's financial confidence, enabling them to challenge entrenched money taboos and fostering candid conversations about financial matters within familial spheres.

The ramifications, however, extend beyond individual empowerment, with broader societal implications projected to materialize. As women gain access to financial liberation, the capacity to foster economic stability for future generations remains, heralding a more equitable economic landscape.

Image Source: Photo by Christina Morillo | Pexels
Image Source: Photo by Christina Morillo | Pexels

Survey respondents expressed their intention to use their financial resources to support organizations focusing on women and girls, tackling issues such as reproductive rights, women's health, and violence against women.

"Women (especially high net worth women) give away a larger percentage of their wealth. They also tend to give more as their income rises. As more women come into money during the Great Wealth Transfer, we could see non-profits become more fully funded," the survey stated.