What you probably already know: The wealth of millennial women is outpacing that of men, a striking change that signals a historic shift in balance of power. RBC Wealth Management finds that women are gaining unprecedented economic power, especially given that they tend to prioritize family security and philanthropy as well as the balance in their portfolios. Different generations of women view their finances very differently, with millennial women taking more risk and relying on digital investment platforms more than their older colleagues. RBC interviewed more than 2,000 high-net worth individuals across the United States — 75% were women. In general, women focus on purpose, values and societal impact more than men.
Why it matters: “We are seeing a transformative era,” says Angie O’Leary, RBC’s head of wealth strategies. “This change recognizes that the growth of women’s wealth is not just a statistic.” It’s not that women are making money differently, as most still rely on investment, but millennial women cite business ownership and innovation as keys to building wealth, compared to just 20% for Gen Z women and 10% for boomers. The report continually focuses on one key element: By almost every measure, millennial women are outpacing men in higher total and investable assets, a finding RBC says signals a “new era of financial dominance.” Of all generations, Gen X women worry most about their financial futures.
What it means: Notably, RBC notes that women and men across all generations have the same risk tolerance, contrary to the old trope that women shy away from high-risk investments. These women aren’t doing it on their own, either. The vast majority (90%) rely on a financial adviser for guidance, giving them higher confidence in their ability to maintain their lifestyle, including in retirement. Different generations, however, don’t necessarily have the same financial goals, at least beyond the basics. Millennial women focus on what RBC calls “living while giving,” while boomer women tend to hang onto most of their wealth until they die (philanthropists such as MacKenzie Scott and Melinda Gates nothwithstanding).
What happens next: The implications for philanthropy are significant. More than six in 10 millennial women say they’re focused on generational wealth and giving earlier in their lives. More than half cite the importance of giving back as a personal ethos, almost double the rate of other generations. “With women outliving their partners and the Great Wealth Transfer underway, there is a significant concentration of wealth among boomer women who continue their longstanding commitment to philanthropy,” O’Leary says. “We’re seeing younger generations of women, particularly millennials, following suit, prioritizing legacy and charitable giving earlier and faster than ever before as their economic power grows.”
