If you’re a keen reader of The AllBright Post, you’ll know that we are having a money moment. We’re smashing the stigmas around money talk and getting real about personal finance including closing the gender savings gap, the gender investment gap and how to handle money stress.

Now, we’re shining a light on the Great Wealth Transfer – the upcoming shift in financial assets and wealth passed down from the Baby Boomer generation to Gen X and millennials. By 2030, an estimated $30 trillion will fall into the hands of women. Here’s everything you need to know about the Great Wealth Transfer, and what it’ll mean for your pockets.

Understanding the Great Wealth Transfer

If you’ve already heard of the Great Wealth Transfer, you might be surprised to know that it’s coming faster than you might think – and it’s already underway. 

“Ultimately, the Great Wealth Transfer will be about much more than money,” said Frankie Smith, CEO and founder of FSWM and Frankie’s Financial Services. “As a financial planner, I see this as a key moment for families and businesses with regards to financial responsibility, opportunity and independence. It could also mean a profound change in those who hold financial influence,” she said.

And as more wealth is passed down, this means women in particular have a lot to gain.

“Not only will we see more women taking on those financial decision-making roles, but it also presents an opportunity to start closing the gender wealth gap and empowering more women to invest and start businesses. It also offers an opportunity for a shake up across the industry itself, as more women start to engage with financial services,” said Smith.

A report from UBS explained how women are more likely to make impact driven decisions with their spending, meaning that the Great Wealth Transfer will have a far greater effect than on women’s own personal finances. “These two trends— women’s growing financial clout coupled with their recharged commitment to leading a meaningful life—are the twin engines behind women making a greater impact than ever before,” the report states.

Taking financial control during the Great Wealth Transfer

To prepare for this significant economic shift, it’s more important than ever before for women to take control of their personal finances. Especially at a time like now when the economic climate is constantly changing and geopolitical events and AI continue to disrupt sectors and cause uncertainty, it’s crucial for women to take control of their financial futures.

“With the Great Wealth Transfer underway, conversations I often have with clients are not just around how to prepare our future generations to receive wealth, but how to grow and sustain it!” Smith said. 

“Women need to feel supported and empowered to take on financial responsibilities, and this can start simply by taking ownership of their personal finances. We know that women are more likely to focus

on the longer term, so the earlier they start to take control the more opportunities they’ll have,” she explained.

Managing your money

It’s crucial for everyone – and every woman – to feel fully in control of her financial future. If you’re not completely comfortable or happy with your personal finances, Smith shared her top tips to manage your money.

1. Start with you: Identify your short, medium and long term goals. From making a splurge to buying a home, having goals helps to provide you with direction in managing your money.

2. Know your numbers: A budget is key to understanding where your money goes. Track your spending and savings – it’s the easiest way to feel comfortable with how you’re using your money and where you could make changes.

3. Knowledge is power: Understand your knowledge gaps and educate yourself to make informed financial decisions with confidence. There’s lots of digestible, trustworthy financial content tailored for women available now – and you’re already in the right place. Don’t be afraid to reach out and ask questions!

4.Don’t do it alone: Join a community like AllBright or Frankie’s. Surround yourself with like minded people to gain financial knowledge and also build a network that can provide valuable support and opportunities.

5. Start investing: There is no perfect moment to start investing! Small, regular contributions to a stocks and shares ISA can build your wealth over time.

In order to be more empowered with your personal finances in the short and long term future, Smith also shared her advice on what you can do, starting right now. “Empowering people with their personal finances isn’t a one-off conversation – it’s an evolving journey,” she said.

Now: Start with building your financial foundations and confidence. “I encourage clients to understand their current financial position, which might mean starting to use budgeting tools or identifying and setting financial goals,” Smith advised.

In 1 year: It’s time to put a plan in motion to reach your goals. Automate your savings where possible to start building a financial safety net. Understand what your values and risk appetite is when it comes to investing, and revisit your protection needs to future-proof your finances. If you are already investing, work on diversifying your portfolio.

In 5 years: Your financial habits should be embedded by now, and you’ll start to see your wealth growing. Review your investment strategies, pension contributions, and adjust for any major life shifts. You might find empowerment and satisfaction from reaching some of your goals! Consider working with an advisor to maximise your opportunities and make your money work hard for you.

In 10 years: Now’s the time to secure your legacy planning. Ensure your will is up to date and explore tax efficient estate planning to support the financial future of your loved ones. It’s also a good time to reassess your goals, retirement strategies and your longer-term dreams. 

Disclaimer

AllBright cannot guarantee that all of the information provided in this video or article is accurate. Use the information provided on our website at your own risk. If you wish to make an investment you should seek independent financial advice before doing so, and ensure that you have carried out your own research on the product or company that you are investing in. Any advice provided is not tailored to anyone’s individual situation, as each individual is in a different situation. AllBright does not accept any liability whatsoever for any action taken or losses incurred as a result of the information provided on our site.