The rise of female wealth: How women can maximise inherited assets

Over the next few decades, older generations are expected to transfer record amounts of wealth to their children.

As this Great Wealth Transfer escalates, new research by Unbiased (10 June 2025) has revealed that women are 45% more likely to have inherited assets than men.

While a large inheritance might improve your financial situation and present new opportunities, losing a loved one can be an emotionally challenging experience. As such, deciding how to manage your new wealth may feel overwhelming.

Keep reading to learn more about how the Great Wealth Transfer is affecting women’s finances and discover four useful tips for making the most of inherited assets.

The number of women inheriting wealth is on the rise

The Unbiased study found that 19% of women who sought financial advice reported inheritance as part of their asset wealth, compared to 12% of men.

There could be several reasons for this discrepancy, including:

• Women’s longevity – On average, women outlive men by several years. According to the Office for National Statistics’ (ONS; 14 February 2025) life expectancy calculator, a 50-year-old woman will live to 87 on average. In contrast, a 50-year-old man has an average life expectancy of 84 years.
• Gender age difference at the point of marriage – The most recent data available from the ONS (20 June 2024) reveals that the median age for an opposite-sex marriage was 32.7 years for men and 31.2 years for women in 2021/22.
• Women’s caring responsibilities – According to Carers First (27 February 2024), 60% of carers in the UK are women. What’s more, Homethrive (3 March 2025) has reported that 43% of highly qualified women with children leave their careers or take an extended break from work, compared to 24% of men.

As such, women in a heterosexual marriage or civil partnership may be more likely to inherit from their civil partner or spouse. Indeed, the Unbiased research found that 57% of male advice seekers plan to leave wealth to their female partner, compared to 28% of women who sought advice.

Moreover, women may also inherit more from their parents or other family members, due to the loss of earning potential they might face as a result of caring responsibilities.

4 clever ways to make the most of inherited wealth

It’s worth taking time to think carefully about how you could make the most of your inheritance. Otherwise, you might be tempted to make rushed, emotion-based decisions that could lead to poor choices and regrets.

1. Talk openly with your family about estate planning

According to Today’s Wills & Probate (23 May 2025), only 15% of parents discuss inheritance with their children.

While it may not be a topic you and your family feel comfortable broaching, breaking this taboo is essential for effective financial planning.

Talking openly about estate planning could give you a realistic idea of how much you might inherit. You can then make a clear plan about how to use this wealth when the time comes.

Open conversations about inheritance may also reduce the risk of family disputes in the future.

2. Consider the tax implications of an inheritance

There may be Inheritance Tax (IHT) to pay on your loved one’s estate when they pass away. This could affect the size of your inheritance.

If you know how much you’re likely to inherit, you can take steps to potentially mitigate an IHT bill. For example, your parents might choose to gift some of your inheritance while they are still alive.

Your IHT liabilities will depend on several factors, including the value of the deceased’s estate and their relationship to you. A financial planner can help you navigate the complexities of IHT planning and ensure that you receive inherited assets in the most tax-efficient way possible.

3. Top up your pension pot

Recent data published by Aviva (26 June 2025) shows that the gender pension gap has widened for women in their 30s and early 40s. Moreover, women’s pension pots from 60-year-olds are on average 43% less than men’s pots at the same age.

So, receiving a significant inheritance could provide a valuable opportunity to bolster your retirement savings.

For example, you could increase your monthly pension contributions. If you’re paying into a workplace pension, it’s worth asking your employer if they will match your increased payments.

4. Invest for the future

You might want to keep some of your inherited wealth in cash to cover short-term expenses and ensure that you have a financial cushion for emergencies.

However, investing could help you make your money work harder and keep you on track to achieve your long-term goals.

This is because inflation often erodes the purchasing power of cash over time. In contrast, invested funds have a higher chance of keeping pace with inflation. You could also benefit from the powerful effect of compounding, which allows you to earn returns on both your original investment and on returns you received previously.

A financial planner can help you explore the many and varied investment options available, such as Stocks and Shares ISAs, bonds, and property. They can also ensure that your portfolio aligns with your tolerance for risk and your long-term goals.

Read more: 2 powerful ways to boost your investing confidence as a divorced woman

Get in touch

If you’d like help planning how to make the most of your inherited assets, please get in touch.

To find out more, please get in touch by email at lottie@truefinancialdesign.co.uk or call 03300889138.

Please note

This article is for general information only and does not constitute advice. The information is aimed at retail clients only.

All information is correct at the time of writing and is subject to change in the future.

Please do not act based on anything you might read in this article. All contents are based on our understanding of HMRC legislation, which is subject to change.

The Financial Conduct Authority does not regulate estate planning or tax planning.

A pension is a long-term investment not normally accessible until 55 (57 from April 2028). The fund value may fluctuate and can go down, which would have an impact on the level of pension benefits available. Past performance is not a reliable indicator of future performance. 

The tax implications of pension withdrawals will be based on your individual circumstances. Thresholds, percentage rates, and tax legislation may change in subsequent Finance Acts.  

Workplace pensions are regulated by The Pension Regulator.

The value of your investments (and any income from them) can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance. 

Investments should be considered over the longer term and should fit in with your overall attitude to risk and financial circumstances.