A quiet but powerful shift is happening in wealth management. And if advisory firms don’t pay attention, it could cost them billions.
I’m talking about women, specifically, women who inherit wealth after their spouses pass away. These women are increasingly walking away from the advisors they and their partners used for years. And it’s not because they want to shake things up. It’s because
they never truly felt served in the first place.
According to the National Association of Insurance and Financial Advisors (NAIFA), 70% of women fire their financial advisor within a year of their spouse’s death.
This statistic should stop any financial advisor in their tracks. If they aren’t building relationships with both partners in a household today, there’s a good chance they won’t be managing their assets tomorrow.
The Great Wealth Transfer
Let’s zoom out for a moment.
We’re in the midst of the Great Wealth Transfer in the US, with an estimated $45 trillion expected to move from Baby Boomers to Gen X and Millennials over the next decade. This shift is already well underway. But here’s the part that’s often overlooked:
Before wealth moves to the next generation, it typically flows across, from husband to wife.
Most 70+ households, which control double the average assets, will experience an intra-household transfer before the children see a cent. And since women statistically live longer and are often younger than their male spouses, they will be the first inheritors
in the vast majority of boomer households.
The implication? Women-led households are at the forefront of the wealth transfer. And many of them aren’t sticking with the status quo.
Why are women leaving their advisors?
This isn’t a matter of poor performance. It’s a matter of feeling unheard, underserved, and underestimated. Data show just how real and preventable this problem is.
For instance, nearly one in five female-led households switched advisors because the quality of advice was poor. That’s a 50% increase on the rate reported by the average household. Many women also express lower confidence in meeting their financial goals,
with only 41% of female-only households saying they feel confident, compared to an average of 52%.
Their trust in online financial information is also weaker – just over half rely on the internet, versus an average of nearly two-thirds. And perhaps most importantly, women are significantly more likely to depend on recommendations from family and friends
when choosing a new advisor. This word-of-mouth reliance underscores how important personal trust and connection are in earning and keeping their business.
Women aren’t switching advisors lightly. They’re switching because they don’t feel like the advisor understands them, their goals, or their values.
What makes female clients different?
Advisors often treat households as if a conversation with one spouse (usually the man) is enough. But the reality is, women approach finances differently, and if advisors want to retain their trust and business, they need to understand and respect those
differences.
Our data shows that women are more risk-averse than men, but they also report lower confidence in judging investment risk. This combination often leads them to portfolio diversification to minimize exposure and help them feel more secure. Many women also
show a stronger interest in socially responsible or ESG funds, reflecting a desire to align financial decisions with broader life principles.
Rather than working with a single expert advisor, women often prefer a team-based approach that feels more collaborative and less hierarchical. They also want to spend less time making investment decisions. And finally, women tend to see banks and credit
unions as more trustworthy sources of advice than traditional investment firms, which may indicate a service or messaging gap in the advisory world.
So, when the woman becomes the sole financial decision-maker, whether through widowhood or divorce, the cracks in the relationship widen. What felt like a passive discomfort before becomes an active mismatch.
What should advisory firms do to attract women?
Here’s how forward-thinking firms can bridge the gap and turn risk into lasting client relationships.
- Build genuine relationships with both partners in every household.
Ensure both voices are heard in every meeting, decision, and planning milestone, instead of defaulting to the spouse who leads on financial matters (often the man). That means talking to each spouse directly, listening to their concerns, and validating their
goals with equal weight. - Develop a clear, empathetic transition protocol specifically for widows.
Create a supportive onboarding process after a spouse passes, tailored conversations around new goals and timelines, and check-ins designed to build trust, not just conduct reviews. - Invest in gender-smart communication and advisor training. Learn how to better connect with women by focusing on values-based planning, active listening, and inclusive decision-making. Understanding the psychology of female investors,
including their greater sensitivity to risk and desire for clarity, can significantly improve outcomes and satisfaction. - Rethink the traditional solo advisor model. Highlight the firm’s collective strengths, cross-functional experts, and relationship continuity. Women prefer advisory teams, so this makes a big difference in retention and trust.
- Lean into trust-based marketing. Encourage warm referrals, invest in community events, and offer opportunities for clients to introduce others to their advisory experience. Women often rely on friends and family to make financial decisions.
- Provide education tailored specifically to women. Run workshops, webinars, newsletters, or intimate group sessions focused on financial confidence, investing basics, and life transitions to empower female clients and build engagement.
Implications for advisory firms
The first wave of the generational wealth transfer will happen inside the household; typically, from husband to wife. But unless firms act now, that first transition could also be the first point of asset loss.
Most women don’t feel understood by their advisor, and they’re ready to make a change. But firms that take the time to truly serve the needs of women-led households before it is too late will be rewarded with long-term loyalty and multigenerational relationships.
The future of wealth isn’t just about money, it’s about trust. It’s about listening, empathy, and relevance. The firms that build around those values will be the ones who lead the next era of advisory services.
The firms that win in the next decade will be those who realize the biggest opportunity isn’t just in the money, it’s in the relationships they build with the people who will hold it next.
