BofA: Women to inherit $30 trillion of wealth in next decade

The Great Wealth Transfer report from the Bank of America has shed light on a significant shift in the global economy, with wealth increasingly tilting towards females. According to the report, women are poised to inherit a staggering $30 trillion of US wealth in the next decade alone, signaling a major change in the financial landscape. Joining CNBC Africa to discuss these findings was Kay Hope, Managing Director at Bank of America. Hope highlighted the key findings of the report, stating that over the next 20 years, a massive $84 trillion in wealth is expected to move into the hands of women globally. These numbers are monumental, considering the global GDP in 2022 was $101 trillion, showcasing the substantial impact of this wealth transfer. She emphasized that this transfer is driven by factors such as women inheriting money from parents or spouses and the growing educational and career opportunities for women worldwide. The trend of women delaying marriage and childbearing to focus on building their careers and wealth has also been observed. This shift provides women with more time to accumulate wealth, gain financial knowledge, and make informed financial decisions, ultimately empowering them to take control of their finances and investments. In response to this wealth transfer, industries are adapting their products and marketing strategies to cater to the changing needs of female consumers. Advertising campaigns are featuring more women in leadership roles and targeting a wider demographic of older women, reflecting the evolving consumer landscape. The impact of women gaining access to leadership roles on the economy has been positive, with companies that embrace diversity in leadership demonstrating greater profitability, employee retention, and satisfaction. The correlation between gender diversity in leadership and overall corporate success highlights the importance of inclusivity and equal opportunities in the business world. However, disparities in wealth distribution and access still exist, particularly in regions like Sub-Saharan Africa, where women may face challenges related to gender inheritance laws and limited financial resources. Despite these obstacles, Africa's entrepreneurial spirit is vibrant, with women actively starting businesses and contributing to economic growth. Hope also addressed the differences in how women and men invest, noting that historically, women have been more risk-averse due to factors such as limited financial expertise in making significant investment decisions. Younger women with better financial education are closing the investment gap and adopting investment strategies similar to their male counterparts. As the financial landscape continues to evolve, empowering women with financial knowledge and access to resources will be crucial in driving economic growth and prosperity. The insights from the Great Wealth Transfer report underscore the importance of gender equality and inclusivity in shaping a more equitable and prosperous future.