In previous articles, I have considered the intergenerational wealth shift unfolding and its holistic effect across society and the economy; it’s something that is going to impact us all.  
Within this broader shift lies a powerful trend – the women’s wealth shift – which is set to have its own transformational impact on financial services and across all facets of society and the economy.  

As we know, women in this country have been historically and at times, overlooked and disadvantaged from a financial management perspective. Great strides towards equality have happened in my lifetime, yet for many women, structural inequalities and financial disparities remain.  

What I’m seeing ahead is a significant adjustment. As always, it is important to consider your own circumstances and where appropriate seek your own financial, tax and legal advice. 

Women’s roles as key financial decision makers 

A JBWere report* found that in Australia, women are set to inherit 65% of the wealth being transferred as part of the intergenerational wealth shift. In future decades, this means women will be the primary wealth holders and the key financial decision-makers generally. Add to this the many ways in which women’s financial positions have strengthened in recent decades (albeit from a low bar due to deep structural inequities).  

With changing social and family structures, women have increasingly become sole income earners, or dual income earners. Like men, women are today benefitting from growing superannuation balances, and investments in their own name. Selfwealth, for example, has seen female investors growing in number, since our inception in 2012. 

Added to this, female students are outperforming their male peers in education, particularly at the tertiary level. They are obtaining better qualifications, working in all industries and opening businesses at a growing rate. Previously excluded from many opportunities and spaces, women are better educated, equipped and empowered financially than ever before. 

*JBWere (March, 2024) The growth of Women and Wealth https://www.jbwere.com.au/content/dam/jbwere/documents/campaigns/JBWere-Growth-of-Women-and-Wealth.pdf 

Unique challenges, new opportunities 

What does this mean for the financial services industry? In short: it needs to rapidly adapt in every way. The primary financial advice client and investor will soon be female. Any advice business that hasn’t been managed with this in mind is set to lose out to competitors.  

What do we already know? At a general level, we know that women are more risk-averse and hold a long-term view for investments. A 2023 ASX Australian Investor Study reported that women are overall less comfortable with high-risk investments compared to men, with 30% of female investors reporting avoidance of high volatility, compared to only 21% of men. 

The same ASX study also showed a significant difference in the prevalence of women obtaining professional advice compared to men. 56% of women said they are more likely to work with a financial adviser compared to just 44% of men. This may contribute to a more informed, steady and strategic approach to wealth building. 

A new chapter for the financial services industry 

The financial services sector must understand and cater to the behavioural and psychological preferences of women, as distinct from men to truly win in the next era. Fortunately, the best advisers are already equipped with the necessary skills to achieve this: listening and employing empathy to understand their client’s needs, both financial and personal. 

Male advisers and financial services professionals still outnumber female advisers in Australia. With the growing demand from a more diverse clientele, we might see this reflected in our industry too. 

Personally, I am greatly enthusiastic about the new era ahead, which promises a much more influential role for women, and can thereby stand to break down some of the remaining inequalities that have persisted. Women are undoubtedly the future wealth builders of Australia, and it behooves our industry to prepare and deliver accordingly.