Wealthy women are more reluctant to invest their inheritance than their male counterparts but two-fifths regret their hesitation, new research from Capital Group has revealed.
The study of high net worth individuals across Europe, Asia Pacific and the US found a notable investing gap between women and men, with women more hesitant to invest and less likely to seek traditional financial advice.
The findings showed women invest significantly less of their inheritance (26%) compared to men (36%), underlining missed opportunities.
Women also allocate more of their inheritance to savings than men (14% versus 11%) and on average, spend more of their inheritance (15% versus 11% of men).
However, 40% of women wish they had invested more of their inheritance, while 30% of men share the same sentiment.
Alexandra Haggard, head of asset class services, Europe and Asia-Pacific at Capital Group, said: “With $124 trillion set to change hands over the next two decades, women will inherit a significant share of this wealth. Now is the time for them to take control of their financial future. Our research shows that while many women save more and invest less, some later regret not investing more of their inheritance. The good news is, it is never too late to start.”
Capital Group’s research showed that women are twice as likely as men (27% versus 15%) to seek investment guidance from social media and ‘finfluencers’ rather than professional advisers.
A greater number of women (68%) also believe AI and other technologies will enhance financial advice through deeper personalisation compared to men (59%).
Haggard added: “Many women turn to social media and ‘finfluencers’ for financial guidance, but as their financial needs grow more complex, professional advice becomes more crucial.
“As the ‘Great Wealth Transfer’ unfolds, the wealth management industry must adapt to the rising influence of women in wealth.”
Main image: IjkIOe-2fF4-unsplash
