The upcoming Great Wealth Transfer is projected to move over $83 trillion in family wealth over the next 20-25 years, according to UBS. An often-overlooked aspect is that a substantial portion, around $9 trillion, will initially transfer horizontally to surviving spouses before moving to younger generations. Given that women tend to outlive men by an average of four years, widows are expected to be the primary initial beneficiaries, creating a new class of wealthy women. In 2025, 27 out of 43 women who achieved billionaire status did so through inheritance, highlighting this trend.
This shift presents challenges for the wealth management industry. Advisers often focus on the male patriarch, leading to 70% of newly divorced or widowed women changing their wealth adviser. Financial advisors need to adapt to better serve these newly wealthy women, many of whom are navigating financial management for the first time after their husbands handled longer-term planning. The transition for these women can be both liberating and daunting, necessitating support beyond just financial advice.
The Great Wealth Transfer is also prompting a reevaluation of investment strategies, particularly among younger generations. While baby boomers show only about 15% interest in alternative assets, almost 90% of those aged 21-45 want to invest more in areas like private equity and real estate. This includes a growing interest in cryptocurrencies, with some family offices allocating 1-2% of assets to them, and early tech adopters sometimes reaching 5-7%. Traditional financial institutions like Morgan Stanley and JPMorgan are responding by partnering with crypto groups and acquiring platforms for private company shares, such as EquityZen, to cater to these evolving client demands and prevent client attrition to newer, tech-focused competitors. JPMorgan, for instance, is dedicating $2.2 billion of its $20 billion tech budget to asset and wealth management to enhance client tools.
