The Great Wealth transfer is underway, with around $3.5 trillion expected to be passed on during the next 30 years in Australia and women are set to be the major beneficiaries of this transfer.1https://www.moneymag.com.au/why-women-will-lead-the-intergenerational-wealth-transfer
Still expected to live longer than men, women may inherit three times in their lifetime – from parents, parents-in-law and husbands, meaning they have an 80 percent chance of being in sole control of their family’s finances at some point in their lives.2 https://www.afr.com/wealth/personal-finance/baby-boomers-and-their-families-ill-prepared-for-big-wealth-transfer-20231002-p5e95w
This is fantastic news for financial gender equality. Becoming the director of family wealth can be empowering provided women have the resources and confidence to make good financial decisions.
Challenges and Empowerment: Women Taking Charge of Family Finances
A survey by Household, Income and Labour Dynamics in Australia (HILDA) in 2021 found that financial literacy scores had declined for both men and women since their previous survey in 2016, with women scoring lower than men in all age groups in both cases.3https://www.afr.com/wealth/personal-finance/most-australians-can-t-answer-all-of-these-five-basic-money-questions-20221130-p5c2kv
Women were also found to be more likely to opt out of receiving financial advice after the death or divorce of a partner – a time where making informed financial decisions is crucial.4https://www.afr.com/wealth/personal-finance/baby-boomers-and-their-families-ill-prepared-for-big-wealth-transfer-20231002-p5e95w
Over the past decade, the team and I have worked hard to encourage greater engagement from women in their financial affairs and we are pleased to see increasing numbers becoming more actively involved. More women are attending meetings, asking questions, owning the relationship with us, taking on the role of family CFO and playing an active role in decision making.
While this is a promising shift, there is still a large gap in financial knowledge and wellbeing between men and women.5https://www.anz.com.au/content/dam/anzcomau/documents/pdf/aboutus/esg/financial-wellbeing/financial-wellbeing-australian-women-report-march-2023.pdf?mboxid=session%235f1cc59f3f9b4c138642a9abd10dd8eb%231710111128%7CPC%235f1cc59f3f9b4c138642a9abd10dd8eb.36_0%231773354068&adobe_mc=MCMID%3D64954702081314620664266727136715856507%7CMCORGID%3D67A216D751E567B20A490D4C%2540AdobeOrg%7CTS%3D1710109268
Building Financial Confidence: Essential Steps for Women and Families
As with every client relationship, we find the crucial first step involves active engagement in the advice process. It is essential that women follow the same approach and lean into the process themselves in order to cultivate confidence and readiness for the Great Wealth Transfer.
Here are some key things that can help you become engaged with your personal and family finances. Remember, knowledge is power.
- Take an active interest wherever you can.
- Stop telling yourself it’s boring or that you aren’t capable.
- Don’t be afraid to ask questions – nothing is too stupid.
- Talk about it at the dinner table.
- Engage your children and grandchildren.
- Seek advice.
- Attend meetings and get it done.
- Read what you are signing before you sign it!
With such a large transfer of wealth headed our way, it is crucial that we overcome these barriers and prepare ourselves for the responsibilities that come with the ownership of family wealth.
View Jacqui’s website profile here or connect with her on LinkedIn here.
Closing thoughts from Jacqui
To have the impact we intend for our clients, as a team, we must continuously work on ways to manage our time effectively. I frequently engage with our team, discussing strategies to elevate our collaborative efforts while prioritising our client’s time. These principles are not limited to the workplace but can be seamlessly integrated into our daily lives, fostering a deep respect for both our time and that of our clients. I trust that this article has offered valuable insights on how you can optimise your time management each day.
Jacqui Sherlock – CEO
