According to Forbes, women are set to inherit 70 percent of approximately $124 trillion in what is being termed “the great wealth transfer” over the next five to 30 years. This wealth, primarily coming from the Baby Boomer generation, those aged 60 to 80, who are considered the wealthiest generation will transition to Millennials and Gen Z. However, it’s important to note that over 50 percent of this wealth will originate from high net worth and ultra-high net worth households, which represent only two percent of all families. Consequently, for the majority of families, this anticipated transfer of wealth will not happen, simply because the wealth isn’t present.
The great wealth transfer is not merely about passing on financial assets, it also involves a transfer of trust. Research in the U.S. indicates that 70 percent of wealthy families lose their money by the second generation and 90 percent by the third. Therefore, preparation is needed, not only to seize the opportunities that arise but also to address the challenges associated with intergenerational wealth transfer.
Much of the wealth held by Baby Boomers is tied up in real estate, which, like its owners, has aged and often requires modernisation. For heirs inheriting these assets, the financial and emotional burdens can be significant. The complexity of decision-making increases further when multiple heirs are involved.
A growing strategy among wealthy families is “giving while living,” a personal act of legacy sharing that allows them to witness the impact of their generosity on the next generation. For the women poised to inherit this wealth, there lies an opportunity to influence the trajectory of social change. They can shape what is deemed appropriate, wise, and aligned with their values.
I recently came across a quote by Aliko Dangote, “My real investment wasn’t cement, sugar, or oil, it was my daughters.” His daughters Mariya, Halima, and Fatima are poised to shape the future and legacy of his business. Similarly, billionaire philanthropist Melinda French Gates emphasises that fathers who believe their daughters can achieve anything may significantly influence their success. Although her children will inherit less than one percent of the family fortune, she encouraged one of her daughters to navigate the challenges of entrepreneurship without relying on inherited wealth, to feel the sting of rejection and grow from it refusing to put any money into her startup. The startup aims to compare clothing prices from over 40,000 sites to help users find the best deals. Then, you have Ruth Gottesman, former professor at Albert Einstein College of Medicine in the Bronx, who donated $1 billion to the school to offer all students free tuition in perpetuity.
This wealth transfer is personal; it’s about representation so when a young girl looks up, she sees different types of women she may want to be. In business, in sport, in politics, take your pick, if you can see it, you can be it!
Until the 1970s, women in the UK/US were unable to open bank accounts or apply for loans without a male counterpart, as they were deemed high risk investments by banks. It wasn’t until 1975 that women could open a bank account in their own name and even after this progress, single women still needed their father’s signature to access banking services. In Africa it was at different times depending on the country, with the laws in some nations only being changed in 2023.
Growing up, many little girls were told they should be seen and not heard and though Women are 51 percent of the population we’ve never had equal control. I believe the next few years is an opportunity not only to reflect on where we are but how much further we can go. Women know exactly what they want and the world needs to catch up.
Stephen is a Luxury Real Estate Advisor advocating for women’s financial freedom.
