Women and the Next Era of Retirement Planning

Women are poised to be at the center of the Great Wealth Transfer, the historic transfer of trillions of dollars from older generations to spouses and heirs that is reshaping the financial landscape. This shift represents more than a transfer of assets. It reflects a changing financial landscape where more women are making financial decisions, planning for retirement and shaping family legacies.

The New Face of Wealth

Women are increasingly becoming the primary financial decision-makers in their households. The factors behind this change are workforce participation, business ownership, independent wealth creation and inheritance. It’s projected that widowed women in the Baby Boomer and older generations will receive nearly $54 trillion through the horizontal wealth transfer between spouses.¹

Over the next two decades, trillions of dollars will move from older generations to spouses, children and heirs in the Great Wealth Transfer. As a result, women are expected to assume greater control of wealth than ever before. That shift is already underway. Assets controlled by women in the United States increased from approximately $10 trillion in 2018 to $18 trillion in 2023. That number is projected to reach $34 trillion by 2030, representing about 38% of U.S. assets under management.²

How Women Plan

As women inherit and accumulate more wealth, many are taking a more active role in financial planning, investment management and long-term wealth preservation. This emerging generation of Gen X and Millennial investors appears to be approaching financial decisions with greater involvement and intention than prior generations.

This highlights an important consideration for financial professionals. While women's influence on wealth ownership continues to grow, their financial goals, preferences and life experiences are not always reflected in traditional wealth management approaches. Those who understand the factors that shape women's financial decisions can build stronger relationships and develop strategies that better support their clients’ evolving needs.

As more women inherit and control wealth, financial professionals have an opportunity to provide education, guidance and planning support that fosters long-term financial confidence. This is particularly true during periods of significant life and financial transitions.

Seeking Confidence, Not Just Products

Many women are active investors, but confidence gaps remain. Research shows that only 41% of women surveyed said they were comfortable selecting investments, while two-thirds said they would welcome help from a personalized planning experience.³

How can financial professionals help women gain more confidence in investing? Move beyond a product-focused discussion and center your conversations on outcomes. 

Focus on retirement income, legacy planning and long-term financial confidence, especially when a client is experiencing a major life change or inheritance situation. Remember that a woman who inherits wealth after the loss of a spouse may also be navigating grief, household changes and new financial responsibilities. Others may inherit from parents while still supporting children, helping aging family members or preparing for their own retirement.

Ideally, you’ve built relationships with women clients before a wealth transition occurs, so you can offer empathy along with financial guidance.

Where Annuities Fit

Certain considerations can influence how women navigate the transfer of wealth and plan for retirement. For example, women on average live longer than men, increasing the likelihood that they will spend more years in retirement. 

Longer life can be a gift, but it also increases the need for income that can last. This is where annuities may provide value.

For women who may prefer a more conservative approach, annuities can help balance growth potential with a level of protection, while adding diversification to an overall retirement strategy.

Annuities can also support broader planning conversations by focusing on what a client wants her money to accomplish. Depending on her goals, an annuity may help create a more predictable income stream, supplement other retirement assets or provide a measure of confidence during market uncertainty. For women who receive an inheritance, an annuity may also be one way to incorporate inherited assets into a long-term retirement income strategy.

The goal is not to replace other investments, but rather to complement a diversified retirement strategy.

A Defining Opportunity

The Great Wealth Transfer will have the ability to reshape the financial services industry. Yet the opportunity extends beyond the assets themselves. It's about helping women navigate a historic shift in wealth ownership and financial decision-making. Guide them to understand their options, build confidence and create retirement strategies aligned with their goals.

Women are no longer a niche segment of the financial marketplace. They are becoming the future of wealth itself. Financial professionals who recognize their unique needs and priorities today will be better positioned to serve them for decades to come.