Women are set to inherit trillions of dollars in the great 'horizontal wealth transfer'
What is "the horizontal wealth transfer"?
The horizontal wealth transfer refers to the passing of wealth between spouses or partners, typically within the same generation, rather than from one generation to the next. This phenomenon is expected to involve up to $9 trillion in the coming years, with women being the primary recipients due to their longer life expectancy. This transfer has the potential to significantly impact wealth management, investing, and luxury spending landscapes.
How much wealth will baby boomers pass down?
Baby boomers are expected to pass down around $84 trillion in wealth to younger generations over the next 20 to 30 years. This transfer will mainly go to spouses, charities, and family members, with the largest transfers happening in the Americas.
Why will inheritances largely go to women?
Inheritances will largely go to women due to the horizontal wealth transfer, where surviving spouses typically inherit wealth from their partners1. Since women usually outlive men, they are more likely to receive these inheritances. This trend is expected to reshape the wealth management and investing landscape.