Capital Group: Women Are Underinvesting Their Inheritances
Women are set to inherit a significant share of assets in the ongoing wealth transfer but they are underinvested relative to their male counterparts, according to a study by Capital Group.
Around a quarter (26.4 percent) of women are investing their inheritances compared to 36.2 percent of men, according to a study by Capital Group entitled «Great Wealth Transfer».
14.3 percent of women allocate their inheritance to savings compared to 11.1 percent for men. More women also spend their inheritance (15.4 percent versus 11.3 percent for men).
However, 40 percent of women wish they had invested more of their inheritance, compared to 30 percent of men.
Differing Sources of Advice
There were also differences in the preferred sources of advice between the genders with women twice as likely (27 percent versus 15 percent) to seek investment guidance from social media and «finfluencers» than from professional advisors. More women also believe AI and other technologies will enhance financial advice through deeper personalization and easier access (68 percent versus 59 percent).
«Many women turn to social media and ‘finfluencers’ for financial guidance, but as their financial needs grow more complex, professional advice becomes more crucial,» said Alexandra Haggard, head of asset class services, Europe and Asia Pacific at Capital Group. «As the ‘Great Wealth Transfer’ unfolds, the wealth management industry must adapt to the rising influence of women in wealth.»
The study was based on a survey of 600 high net worth individuals, of which 34 percent were women and 66 percent were men. They were based across Europe and APAC, including in the UK, Germany, France, Italy, Spain, Switzerland, Luxembourg, Singapore, Hong Kong, Japan and Australia.
