What's Worth Up To $60 Trillion? Learning To Serve Women Investors

Forbes

2 days ago

Let's be clear: wealth management is at a tipping point—and if you're not paying
attention to women, you're leaving serious money—and growth—on the table.
McKinsey's latest report, 'The New Face of Wealth: The Rise of the FemaleInvestor,' reveals a game-changing truth: women now control roughly one-third of retail financial assets in the U.S. and Europe, totaling about $60 trillion. That's not a trend; it's a seismic shift that's only going to accelerate, with women's share expected to hit 40 to 45 percent by 2030.
Despite the surge in female-controlled wealth—up 51% since 2018—more than half of
these assets aren't being actively managed by financial advisors. That's over $10 trillion
in opportunity, largely overlooked. For advisors who can meet women on their terms, the path to growth is wide open. If your practice hasn't made women a strategic priority, now is the time to start.
Here's how…
$60 Trillion and Rising: The Female Wealth Revolution
McKinsey's research attributes women's financial power and growth to a mix of social
changes and economic independence. More women are heading households, building
businesses, inheriting wealth, and living longer than previous generations. Factors such
as declining marriage rates, increased divorce rates, and a growing population of
financially autonomous single women contribute to this shift. Additionally, women's
educational achievements and access to higher-paying roles continue to rise, enabling
greater wealth accumulation irrespective of marital status.
Women are shaping their financial futures with a broader view that blends wealth
preservation with purpose and legacy. McKinsey's findings reveal growing financial
confidence among women—between 2018 and 2023, financial comfort among
European women rose from 45% to 67%, driven largely by millennial women. U.S.
women under 50 showed a similar boost, from 48% to 61%.
This transformation means wealth managers must rethink their approach—not just add
women as an afterthought, but redesign strategies to engage, educate, and empower
this dynamic client segment from the ground up.
Strategy #1: Cultivate Authentic Relationships Beyond Transactions
Women seek trusted advisors who listen and provide tailored guidance, not just product
pitches. Building genuine, ongoing relationships based on open communication fosters
loyalty and creates a foundation for deeper collaboration.
Take time to understand what success looks like for each female client—not only in
financial terms but also how their wealth supports their life goals and values. This
empathetic approach differentiates your service and builds long-term partnerships.
As the report emphasizes, women's preferences for advice often differ from men's. For
example, 76% of women want at least annual investment advice, with this preference
increasing with age. Many women especially value personalized, in-person guidance
during major life transitions such as divorce or widowhood. Advisors who build diverse,
inclusive teams tend to retain female clients better during these critical moments.
Strategy #2: Break the Stereotypes and Personalize Your Approach
No two women investors are the same, so it's critical to move away from cookie-cutter
solutions. Segment your female clients by their distinct goals, risk appetites, and life
stages. For some, growth and entrepreneurship may dominate; for others, wealth
protection and legacy planning might be the key focus.
Develop customized offerings and communications that resonate with each subgroup.
This personal touch signals respect and understanding—qualities women increasingly
prioritize in financial relationships.
McKinsey's research identifies several female investor archetypes worth considering:
- Young, engaged investors – Tech-savvy, cost-conscious, and eager to take an
active role in managing their portfolios.
- Investment-savvy retirees – Experienced investors seeking high-quality,
trustworthy advice.
- Pre-retiree guidance seekers – Prefer comprehensive, in-person planning and
value relationship-driven service.
Tailoring your services and outreach to these varied groups can boost both relevance
and long-term loyalty.
Strategy #3: Integrate Technology with Human Insight
Women investors often value both digital convenience and the human touch. Offering
tech-enabled tools for financial tracking and planning can enhance engagement,
especially with younger clients who expect digital fluency.
However, the report stresses that meaningful conversations and expert guidance remain
vital. Balance technology with regular, thoughtful advisor interactions to deliver a holistic client experience.
Strategy #4: Empower Through Transparent and Collaborative FinancialEducation
Women often value financial advice that emphasizes clarity, empowerment, and
collaboration rather than jargon or high-pressure sales tactics. Offering workshops,
webinars, or informal sessions on topics like investment strategies, retirement planning,
or estate considerations creates an environment where clients feel informed and
confident in their decisions.
This approach positions you as a trusted partner invested in their financial goals and
independence, encouraging earlier and deeper engagement. It also addresses a key
insight from McKinsey's latest research—that many women begin working with financial advisors later than men (for example, 35% of U.S. women start after age 45, compared to 28% of men). By providing accessible, ongoing educational opportunities, advisors can foster trust and build meaningful relationships from the start.
Strategy #5: Build an Inclusive Team Culture
Diversity within your advisory team can enhance your ability to connect authentically
with female clients. A team that reflects varied backgrounds and experiences will bring
richer perspectives to client conversations and create an environment where women
feel understood and valued.
Beyond gender, prioritize inclusivity in all dimensions—including age, culture, and
expertise—to strengthen your firm's culture and client relationships.
While women do not necessarily prefer female advisors exclusively, McKinsey shows
that diverse teams—encompassing gender and other underrepresented groups—have
been proven to better retain female clients during major life transitions. Recruiting and
mentoring diverse talent not only strengthens client engagement but also future-proofs
your firm in a changing demographic landscape.
The Path Forward
The financial landscape is changing, and women investors are at the forefront of this
evolution. For wealth managers, embracing this reality is more than smart, it's essential
to sustainable growth.
The future belongs to those who recognize that serving women investors is not a niche
strategy—it's a fundamental business shift with the power to transform