Women could fall behind in the $124 trillion Great Wealth Transfer because of the ‘confidence gap’ in financial planning, finance experts say

The impending $124 trillion "Great Wealth Transfer" over the next 23 years, primarily from baby boomers, is set to see women inherit 70% of this wealth. However, financial experts, including Fidelity Investments' Karla Valas, warn that women may struggle to effectively manage these significant inheritances due to a prevalent "confidence gap" in financial planning, rather than a lack of knowledge. This disparity, supported by a JPMorgan study indicating fewer women lead long-term financial planning compared to men, is attributed to psychological barriers, societal expectations, and unique challenges like caregiving responsibilities, underscoring a critical need for enhanced financial literacy and proactive planning among women to navigate this unprecedented intergenerational wealth shift.

Analysis

The U.S. is poised for an unprecedented $124 trillion "Great Wealth Transfer" over the next 23 years, with women projected to inherit a significant 70% of this sum, according to Bank of America. This intergenerational shift represents a substantial re-allocation of capital from baby boomers to heirs, predominantly women. This scale of wealth transfer underscores a critical demographic and economic phenomenon.

Despite this substantial inheritance, financial experts, including Fidelity Investments' Karla Valas, warn that women face a critical "confidence gap" in financial planning, potentially hindering effective wealth management. A March 2025 JPMorgan study highlights this disparity, indicating 60% of men lead long-term financial planning compared to only 25% of women.

This gap is attributed not to a lack of knowledge, but to psychological barriers, societal conditioning, and unique challenges such as caregiving responsibilities, longer lifespans, and pay inequity. These factors collectively impact women's confidence in actively growing and managing investments, posing a risk to the efficient deployment of inherited capital.

Proactive financial planning and education are crucial to navigate this wealth transfer effectively. Experts emphasize the importance of early engagement and role-modeling financial literacy for future generations, suggesting structured approaches to wealth distribution to ensure long-term financial independence and avoid potential pitfalls.

Key Decisions for Investors

• Investors, particularly women anticipating significant inheritances, should proactively engage in comprehensive financial planning to effectively manage and grow transferred wealth.
• Consider seeking specialized financial advisory services to address potential "confidence gaps" and develop robust long-term investment strategies tailored to individual circumstances.
• Evaluate intergenerational wealth transfer strategies, including structured trust funds with age restrictions, to foster financial independence and responsible stewardship among heirs.