Why the $68 trillion great wealth transfer is an opportunity for women

Women control only about one-third of all financial assets in the U.S., but that is about to change.

As part of the great wealth transfer, women are expected to inherit much of the $68 trillion in wealth that baby boomers are passing down, according to research by McKinsey.

Whether husbands are leaving money to their wives, or couples are passing a nest egg down to their children, women stand to benefit disproportionately, the research showed.

“It’s an unprecedented time in history that is giving women an opportunity to put themselves in a financially secure position,” said Stacy Francis, a certified financial planner and president and CEO of Francis Financial in New York. She is also a member of the CNBC Financial Advisor Council.

Until now, women have lagged in financial resources and opportunity, largely due to a persistent gender wage gap. Women today still earn only 80% of what their male counterparts do. 

Women are also more likely to work part-time and take time off over the course of their careers, often to care for children or other family members, according to the Pew Research Center.

At the same time, their life expectancy is five years longer than that of men.

“The statistics are sobering,” said Kelly O’Donnell, chief client officer at Edelman Financial Engines. “The math tells us it’s harder for women because they are going to live longer and have less.”

But by 2030, the next generation of women stand to inherit a significant portion of the $68 trillion being passed down as part of the greatest generational wealth transfer in history.

“This is the first time in history that women are able to gain significant wealth,” Francis said.

“My hope is that this opportunity can put women on a financially secure path, but it’s not a no-brainer,” Francis said. “We just need to make sure they have the tools to keep that financial stability.”

Those who take a proactive role in their financial lives face fewer risks, but the first steps to getting there also don’t have to be overwhelming.

“If you are set to inherit a significant amount of money, you are going to need financial advice,” said Maggie Wall, head of diverse growth markets at Citizens.

Even before meeting with an advisor, women should “go in prepared,” Wall said, including compiling a rundown of assets and a list of goals, which may include securing a retirement plan, paying off student debt, buying a home or traveling, as well as what they hope to leave behind for their families.

“That knowledge creates confidence, it creates peace of mind, and it creates more engagement,” Francis said. And with that, “women can use a large inheritance and set themselves up for the rest of their life.”