Women are poised to hold a significantly larger share of global wealth in the coming years, with notable differences in how they manage and grow their financial assets compared to men.
According to a McKinsey report published in May, women currently control about one-third of all retail financial assets in the U.S. and the European Union. That figure is projected to rise to between 40% and 45% by 2030. The analysis is based on a survey of approximately 13,000 U.S. and European investors, nearly half of whom were women.
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Between 2018 and 2023, global wealth increased by 43%, while the share held by women rose by 51% during the same period, according to the report. The report attributes the trend to several factors, including declining marriage rates, rising average incomes for women, longer life expectancies, and shifting financial attitudes.
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A Different Approach to Risk
Women tend to approach investing with more caution than men, according to experts cited by Business Insider. Anna-Sophie Hartvigsen, co-founder of financial education platform Female Invest, said women are “much more risk-aware” and less likely to act on emotional impulses when trading.
“On average, men trade a lot more often than women because they believe they can beat the market or they read something in the news,” Hartvigsen told Business Insider. She added that women investors are generally more realistic in their self-assessments and exhibit greater consistency.
While cautious investing can help manage volatility, Katie Geery, an advisor at Rise Private Wealth Management, said that it can also limit exposure to higher-return opportunities. Geery advised working with financial advisors who understand risk tolerance and can guide clients toward well-informed investment decisions.
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Investing With Purpose
Women investors are also more likely to focus on specific outcomes rather than maximizing returns, according to the report. Avanti Shetye, a financial planner at Wealthwyzr, told Business Insider that women often invest with goals in mind, such as family planning or retirement security.
Geery noted that women are often more inclined toward values-based investing, incorporating factors such as philanthropy and environmental or social concerns into their portfolios. “Women often seek financial advisors who are empathetic and take the time to get to know them on a more personal level,” Geery said.
Hartvigsen said Female Invest members prioritize factors like a company’s carbon footprint and board gender balance, often using climate impact and leadership diversity as key criteria when evaluating investments.
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Emphasizing Long-Term Planning
Starting early remains a key recommendation for women looking to secure long-term financial health. Shetye told Business Insider that women are more likely to take time off work for caregiving responsibilities and live longer on average, both of which increase the need for early and consistent investment.
Hartvigsen echoed that view, recommending systematic monthly investing and diversification. “If you do that, historically, it has been near impossible not to make money in the long run,” she said.
Both Shetye and Hartvigsen emphasized the importance of working with financial planners who prioritize education and build strategies based on individual goals.
“You are never going to know everything there is to know about investing,” Shetye told Business Insider. “The key is consistency, and time will do the heavy lifting.”
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