FUTURE WEALTH IS FEMALE
London - Research carried out by strategy consultants Market-Dynamics Research & Consulting Ltd (MDRC) suggests that the number of HNW women in the EU grew by 11.3% to 1.95m in 2006, some 29% faster than the increase in the number of HNW men in the EU. MDRC estimates that in 2006 45.5% of EU HNW individuals were female, and in the Netherlands and Finland the number of HNW women exceeded the number of HNW men.
For the past 2 years MDRC has been researching the size and characteristics of the HNW sector in the 27 countries of the EU. Using newly commissioned market research together with microeconomic data obtained with the assistance of consultants in each country, plus published macroeconomic statistics, MDRC has developed a EU wide version of its MIDAS market model. The model suggests:
Based on the most conservative measure of individual wealth (free and investable assets) and using a common set of assumptions about the definition of ad parity between men & women’s wealth in the west of the EU, while other states – particularly the recent entrants – having a male dominated HNW sector.
Future wealth is Female
This project has highlighted that across the EU women are becoming wealthier and, in some states at least, will dominate the HNW market within the next 5 years – if current trends continue. Throughout the EU there is evidence that women perform better in education at all levels, they are increasing their asset bases faster than men, the number of professionally qualified women is increasing - and they have higher life expectancy. The combination of these factors will catalyse the growth of financially successful and independent HNW women. There is also some evidence from this project that women already dominate specific sectors of the wealth market in some states, and as the EU gradually becomes more homogeneous (at least economically) it can be expected that these wealth domains will spread. Across the EU the rate of growth of female wealth appears to be consistently higher than the rate of growth of male wealth (albeit from a lower base).
Conclusions
lth management services in the EU, in some markets women are already the main clients of wealth managers. However, where this study is important is in identifying that women have become dominant in some segments of the EU wealth sector and are becoming wealthier more rapidly than their male counterparts. Businesses wishing to succeed in the EU wealth management industry should pay