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Data & Research February 18, 2025
Women’s Growing Financial Power Could Reshape Wealth Management, CFP Reports
As women control a greater percentage of assets and take charge of household finances, they are increasingly turning to professional financial planners for guidance.
Reported by Natalie Lin
Women are playing an increasingly influential role in financial decisionmaking, both within their households and as part of the broader economy, according to a new report by the Certified Financial Planner Board of Standards.
“Building Wealth: Insights on Women’s Aspirations & Growing Financial Power” highlighted the shifting financial landscape, as women attain higher education levels, enter the workforce in greater numbers and accumulate greater wealth.
The CFP Board’s report noted that women’s participation in the workforce has risen sharply over the past five decades, reaching 57.3% in November 2024, up from 43% in 1969. At the same time, men’s workforce participation has declined, falling to 67.9% over the same period. This increase in women’s employment, combined with their higher rates of attaining college degrees (47% of women aged 25 to 34 hold a bachelor’s degree, compared with 37% of men), has led to a significant shift in wealth distribution.
According to a 2019 McKinsey & Co. report, women in the U.S. controlled $10.9 trillion in assets, accounting for one-third of total U.S. financial assets. That number is expected to grow substantially in the coming years, with Bank of America projecting that $30 trillion in wealth will transfer to younger women as part of the broader $84 trillion generational wealth transfer expected by 2045.
With this increasing financial power, women are turning to professional financial planners to guide their investment and wealth-building strategies. The CFP Board’s report found that 56% of women trust a financial planner to help them meet their financial goals, compared with just 7% who rely on online tools or apps.
The survey found that an average of three in five women believe working with a professional financial planner is “extremely” or “very” necessary in developing a comprehensive financial plan.
What Women Value in Financial Planners
When selecting a financial planner, women prioritize expertise, trust and communication skills, according to the report. Nearly all survey respondents (99%) said it is essential that their financial planner finds suitable solutions to their challenges and effectively answers their questions. Additionally, 98% value a planner’s ability to explain complex financial concepts clearly and demonstrate a proven track record of success.
Empathy also plays a crucial role in the client-planner relationship. The report found that 97% of women believe it is important for their financial planner to make them feel comfortable, while 95% value a planner who listens without judgment and understands their personal situation and life goals.
Although only 10% of women surveyed felt that a female adviser best met their needs, a majority (58%) preferred a financial planner who shares their life experiences, and 54% sought an adviser with a similar demographic background.
As women continue to accumulate wealth and take on more financial responsibilities, their trust in financial planners underscores the growing importance of tailored financial advice, according to the CFP Board. The findings suggested that financial professionals who adapt to these preferences will be best positioned to serve the next generation of female decisionmakers.
The study, conducted in partnership with Heart+Mind Strategies, surveyed 296 female CFP professionals and 301 female consumers with household incomes of at least $60,000 or investable assets of at least $50,000.