Millennial women are investing sooner, smarter, more confidently than previous generations

Millennial women – aged between 29 and 44 – are diving into investing to a level unseen in previous generations of women, providing a significant opportunity for advisors.

Several recent reports confirm the importance of this large cohort (around 36 million according to US Census Bureau stats) who are investing on average almost a decade earlier than women from the Baby Boomers generation and across a far broader range of assets.

Charles Schwab’s 2025 Women Investors Survey revealed that the average millennial woman began investing when they were 27, compared to 31 for Gen Xers, and 36 for Boomers. But the motivation of these younger investors is less likely to be retirement (47%) compared to older groups (62% for Gen Xers, 77% for Boomers) with four in ten having got interested on their own or just wanting to learn.

Millennial women are also far more likely than older groups to say they enjoy investing, feel empowered by investing, and consider themselves “an investor.” They are also more interested in cryptocurrencies, options or futures, and alternative investments.

“Younger women investors are off to a good start when it comes to embracing core investing principles like patience and discipline, though there is room for them to continue to strengthen those important characteristics, which often comes with time and experience,” said Jeannie Bidner, Head of Schwab’s Branch Network. “What’s interesting, is that younger women investors are more likely than older peers to be focused on building their base of knowledge and thinking through their plan and the options that are out there. It speaks to the heightened level of engagement we see among Millennial women and the importance of investing and financial education and resources – a big focus for Schwab.”

The Schwab survey is not alone in highlighting the unique position of millennial women investors and the potential for RIAs and other wealth and investment advisors to capitalize on their interest in investing.

Last month, McKinsey reported that the industry has yet to fully capture the growth opportunity presented by the rising share of assets controlled by women, calculated to be around $18 trillion in the US, accounting for 34% of total AUM.

A recent Fidelity Investments study found that women’s most common financial goals for 2025 include saving more, reducing debt, and spending less.

Younger women frequently know what they are doing with their money and the report found the share of US women under 50 who express financial confidence jumped from 48% in 2018 to 61% in 2023.

With this confidence comes strong views on advisors and investment managers, especially regarding fees. More than four in ten US women under 50 with an in-person advisor strongly agree that it’s good to compare rates periodically and 56% of those aged 25 to 34 say they are likely to change banks. 

But the McKinsey research also found that most women who work with an advisor do not do so until they are 45, leaving a significant cohort of potential clients under this age who are not being engaged with.

“Firms that fail to reach younger women risk missing the opportunity to build long-term relationships with female clients that will endure as their wealth grows and their circumstances evolve,” the report states.

A lack of diversity in the advisor pool is mentioned as a challenge for the industry in engaging with younger women clients, along with a default position that the client is a man.

This was also the focus of a report from Goldman Sachs Asset Management in March, with 85% of advisors who took part agreeing that more female advisors would empower more female investors and a similar share saying demographic diversity helps client acquisition and retention.

“Family education and preserving family legacies are important, particularly for our female clients,” said Meena Flynn, Co-Head of Global Private Wealth Management. “Their focus tends to be on bestowing wealth, trusts and estate planning. Engaging the next generation in financial matters early and frequently will equip them with the knowledge, resources, and tools to responsibly manage family wealth over the long term. This makes connectivity with and confidence in their advisors ever more important.”