The nice wealth switch refers back to the $124 trillion anticipated to shift from Child Boomers and older generations to their heirs by 2048. That is greater than the entire world GDP of $115 trillion for 2024.
And one key demographic stands to profit probably the most from the huge wealth switch: girls.
A brand new report from the Bank of America Institute estimates that near $100 trillion of the $124 trillion switch will go to girls, with $47 trillion shifting to girls in youthful generations as inherited wealth and $54 trillion going to surviving spouses, 95% of whom are anticipated to be girls.
“Girls will quickly management more cash than ever earlier than — and the way they use this cash is anticipated to have a profound influence,” the examine reads.
An older 2020 study from consulting agency McKinsey discovered that, by 2030, American girls are projected to manage about two-thirds of all personal wealth within the U.S., representing the largest wealth switch by gender in historical past.
In accordance with Financial institution of America analysis estimates, there are 1.4 billion girls on this planet between 50 and 70 years outdated, with the entire anticipated to develop 47% to 2.1 billion by 2050. Girls in that age group have “extra wealth, independence, and alternative” than girls from earlier generations, the researchers notice.
On account of the good wealth switch, Financial institution of America predicts elevated demand and larger spending on companies, merchandise, and experiences tailor-made towards girls. Inside information collected by the financial institution confirmed that ladies spent extra on discretionary and necessity objects than their male counterparts final yr.
Girls additionally signify 85% of solo vacationers, with Financial institution of America analysis displaying that tour operators, cruise strains, and journey advisors have reported rising demand from girls. River cruise firm Uniworld announced an all-female route for August 2025, becoming a member of different cruise strains like Aqua Expeditions and Superstar Cruises in providing women-only choices.
“The nice wealth switch is making girls richer,” Financial institution of America researchers wrote.
For the complete report, click here.
Associated: 3 Ways to Prepare Yourself for the Great Wealth Transfer
