Core Insights - Nearly 20% of American women with over $1 million in assets do not plan to retire, significantly higher than the 11% of men in the same financial bracket [1] Investment Goals - The primary investment goal for women is maintaining their spending, with 48% citing this motivation, followed closely by 47% aiming to preserve their wealth [2] - Additionally, 44% of women are focused on planning for a comfortable retirement, saving an average of 17% of their income each month, with an average income of just under $550,000 per year [3] Investment Strategies - Female investors show a preference for equities at 40%, which is lower than the 45% allocation by male investors; women also hold more cash (21% vs 19%) and fixed income (25% vs 23%) [4] - Performance is the primary characteristic women look for in investments, but they are also more risk-averse, with 92% not owning alternative investments, and 34% considering them too risky [5] Perception of Risk - Women perceive cryptocurrency as the least reliable asset, with only 22% classifying U.S. stocks as "high risk," indicating a cautious approach to emerging asset classes [6] Future Trends - As wealth accumulates, there is a growing need for diversification beyond traditional markets, with women expected to reshape investment flows due to the "Great Wealth Transfer" [7]

Core Insights - The Great Wealth Transfer is projected to involve $124 trillion being passed down from older generations to younger ones over the next 20 to 30 years, significantly impacting personal finances and government fiscal health [3][4] - Governments are likely to seek a share of this wealth to address high national debts, which could limit private sector access to these funds [5] Wealth Transfer Dynamics - The baby boomer generation, the wealthiest in history, will bequeath substantial sums to Gen X, millennials, and Gen Z, with an estimated $80 trillion changing hands in the next 20 years [3][4] - Women are expected to inherit around $9 trillion and plan to invest it in the stock market, indicating a shift in investment patterns [5][6] Economic Implications - The anticipated wealth transfer could help rectify fiscal challenges in advanced economies, particularly those with unsustainable national debt levels [2][5] - Women, as new wealth holders, are likely to invest differently than men, focusing on long-term strategies and thorough research, potentially lowering the cost of capital for complex investment projects [6] National Debt Context - The U.S. national debt has reached $38 trillion, raising concerns about the speed of accruing borrowing costs amid ongoing high spending [7]

Core Insights - Gen Z is facing significant financial challenges as they await their share of the $124 trillion Great Wealth Transfer from baby boomers [1] - This year, Gen Z experienced the steepest annual drop in credit scores of any age group since 2020, with an average FICO score decrease of three points to 676, which is 39 points lower than the national average of 715 [2] - The decline in credit scores is indicative of broader issues in the credit market and reflects a generation struggling to achieve financial stability amid high inflation and rising interest rates [3][4] Financial Stability and Credit Market - Gen Z's financial fragility is described as structural rather than cyclical, facing unique challenges such as high inflation, digital credit, and social media-driven consumption pressures [4] - The current downturn in credit scores could have lasting consequences if spending and repayment habits do not improve, potentially leading to a long-term financial 'snowball' effect [4] Implications of Lower Credit Scores - A drop in credit scores can hinder Gen Z's ability to qualify for credit cards or loans, increase borrowing costs, and affect other financial opportunities such as car insurance and apartment applications [5] - This situation may trap young adults in a cycle of debt, limiting their potential to grow financially, including starting businesses or purchasing homes [5]

Core Insights - Integrated Partners, a Boston-based RIA and financial planning firm, is experiencing significant growth, recently recognized as the fastest growing RIA in Massachusetts [2] Company Operations - CEO Paul Saganey emphasizes the importance of delegating day-to-day operations to Andree Mohr, the new firm president, allowing Saganey to focus on coaching advisors and managing large clients [2] - The firm has a strategy to attract clients willing to pay more for value, countering the trend of fee compression driven by clients finding advisors through social media and AI [4] Industry Challenges - The current market volatility is seen as beneficial for the firm, as it leads to increased client referrals from nervous accountants, with the firm thriving during chaotic market conditions [5] - The firm has historically performed well during economic downturns, such as the tech crash and the 2008 banking crisis, indicating a preference for turbulent market environments [5] Wealth Transfer Dynamics - The Great Wealth Transfer is influencing the advisor landscape, with new clients shifting from their parents' advisors to Integrated Partners, showcasing the firm's ability to capture this demographic shift [6]

Group 1 - Economists predict a significant $100 trillion will be transferred from baby boomers over the next 25 years, termed the "Great Wealth Transfer" [1] - Approximately 66% of Americans anticipate inheriting money during this period, with 10% feeling less pressure to save due to expected inheritances [1][2] Group 2 - Increased longevity leads to higher healthcare and end-of-life costs, impacting the wealth available for inheritance [2][3] - Fidelity estimates that a couple retiring at 65 will need $172,500 for healthcare expenses, reflecting a 4% increase from 2024, with costs rising as age increases [4] - Long-term care costs are significant, with private nursing home rooms averaging $10,600 per month and semi-private rooms over $9,000 [6] Group 3 - Chronic conditions prevalent in older age, such as Alzheimer's, can be costly, with annual costs for Alzheimer's projected to exceed $1 trillion by 2050 [6] - The potential inheritance may diminish due to the costs associated with parents' care, compounded by the fact that only 24% of U.S. adults have a will, leading to possible delays and disputes in estate distribution [7]

Press contact:Fahd PashaTel.: +1 647 860 3777E-mail: Fahd.Pasha@capgemini.com North America high-net-worth individual population surges, while Europe and Middle East shrink U.S. led the world in growth in its millionaire population, adding 562,000 to reach 7.9 millionUltra-high net worth individual population rises by 6.2% worldwide High-net-worth individuals now allocate 15% of their portfolios to alternative investments, including cryptocurrencies Paris, June 4, 2025 – The Capgemini Research Institute’s W ...