Boomer Women Have Wealth. And Power.
By Karen and Erica
As a group, Boomers are wealthy. Many Boomers are women, and many of them will survive their partners. As a result, Boomer women hold a good deal of Boomer wealth.
Does that matter, beyond the obvious benefit of being able to live as you wish after your career ends? We think so. For better or worse, in our society the possession of wealth is an indicator of power. Once people understand that our cohort has power, we will be seen differently.
Fortune magazine lays out some of the statistics.
Members of [the Boomer] generation have an average median net worth between $200,000 and $255,000, according to the Federal Reserve’s 2019 Survey of Consumer Finances. Their mean net worth sits roughly between $970,000 and $1.2 million.
The average baby boomer’s net worth is significantly higher compared to other generations. Gen Zers’ average net worth sits at $76,000. The average Millennial over age 35 stands at over $400,000. Those in Generation X have average net worths between $400,000 and $833,000, and older generations including Baby Boomers and the Silent Generation have average net worths that creep into the millions.
Much of Boomer wealth will be transferred to women—a vast transfer that will empower Boomer women for decades.
Two-thirds of boomer assets are currently held by joint households where a woman is present, and two-thirds of the time men are the primary decision-makers. With five years of additional life expectancy, 70% of married women will become widows and 70% of those widowed will change their financial advisors within a year of their partner’s death. By 2030 women are expected to control much of the $30 trillion in financial assets and will likely become the primary decision makers in their family. When overseeing assets women are more likely to use professional advisors and twice as likely to pay a premium for in-person advice. Forming an authentic partnership with boomer couples empowers women as investors and wealth management decision makers today and into the future.
CNBC says that women make investment and retail decisions that are different from those of men. Indeed, women do amazing things with their money. Therefore, businesses that focus on women, and understand what they want to do with their money, will profit.
So, with women making financial choices that have a long-term impact on society, the environment and overall business performance, small businesses and major corporations will need to step up and find ways to support social issues such as climate change, racial and gender inequality, and social justice.
Businesses that prepare for the transition of wealth to women could see four-times faster revenue growth, according to a McKinsey & Co. report.
Of course, as newer generations are growing in number, compared to the shrinking Boomer generation, their share of weath is growing too, which is a good thing. Still, Boomers remain very wealthy—as of Q4 2021 their worth is put at $71.59 trillion.
Does that make other generations happy? Maybe not. Remember OK Boomer? Shorthand for complaining that Boomers are responsible for much of what ails the planet today, partly because those generations think Boomers have created structures that benefit them, to the detriment of those who follow. OK, Millennials—but whatever the validity of this allegation, just wait. This wealth is coming to you—especially to you women.
[B]y next year ‘women are expected to control US $72 trillion, 32% of all wealth up from US $51 trillion in 2015.’6 Today, 44% of millennial millionaires are women, whereas only 32% of baby boomer millionaires are women.’7 And as the role of women in business and the economic sector continues to grow, it’s estimated that ‘by 2030, women will likely account for about two-thirds of U.S. wealth.’
That’s a pretty massive change in the status quo from a few decades ago. Probably makes sense for people to think about what is all means. No more business as usual. A huge opportunity.
But—back to our original question. So what? Here’s what. Boomer women are the first large generation of women to control their own wealth. Once businesses realize Boomer women are wealthy, they will offer us products designed for us. They will recognize what we find important in life and the market. They will show us as we are, not as doddering beings of no relevance. Our lives will improve. And we can influence the way women in later generations are treated.
In other words, when society recognizes that Boomer women have money, Boomer women will gain power. So let’s make sure everyone recognizes this new fact of life.
