Despite women being set to inherit a substantial share of the £90.8trn great wealth transfer, they will invest significantly less than men (26.4% vs 36.2%).
This is according to research from Capital Group, an active investment manager with £2.19trn in assets under management.
Women also allocate 14.3% of their inheritance to savings, compared to 11.1% for men.
Additionally, women spend more of their inheritance than men (15.4% vs 11.3%).
However, women are more likely to regret this move: 40% wish they had invested more of their inheritance, compared to 30% of men.
What adds to the situation is that females are almost twice as likely as men (27% vs 15%) to seek investment guidance from social media and ‘finfluencers’ rather than financial advisers.
Also, more women than men (68% vs 59%) believe artificial intelligence (AI) and other technologies will enhance financial advice through deeper personalisation and easier access.
Capital Group head of asset class services, Europe and Asia-Pacific Alexandra Haggard said: “With £90.8trn set to change hands over the next two decades, women will inherit a significant share of this wealth. Now is the time for them to take control of their financial future.
“Our research shows that while many women save more and invest less, some later regret not investing more of their inheritance. The good news is, it is never too late to start.
“Many women turn to social media and ‘finfluencers’ for financial guidance, but as their financial needs grow more complex, professional advice becomes more crucial. As the ‘great wealth transfer’ unfolds, the wealth management industry must adapt to the rising influence of women in wealth.
“At Capital Group, we’re partnering with wealth managers to deliver investment thought leadership, events and education to help their female clients invest confidently and build long-term wealth.”
In order to obtain these results, Capital Group surveyed 600 high-net-worth individuals across Europe, Asia Pacific and the US.
