Canadian women are controlling an increasing amount of wealth – a trend that will continue, says a report from CIBC Capital Markets released today.
The report, The Changing Landscape of Women's Wealth by CIBC Capital Markets economists Benjamin Tal and Katherine Judge, forecasts that women will become an even larger and more influential force in the Canadian economy.
More women in the workforce
"Today 41 per cent of women (single, divorced, widows, and women responsible for investment decisions) control no less than $2.2 trillion of financial assets…That number is expected to rise quickly, as the cohort of women with stronger labour incomes and retirees grows. We estimate that by 2028, women will control just under $3.8 trillion or more than one-third of total financial assets and more than double that number if we include real estate assets," says the report.
The report notes that since the 2008 recession, more women aged 25 and older are working and actively participating in the economy. Women in this demographic have accounted for 52 per cent of job growth in full-time positions since 2008 and have increasingly landed jobs in higher-paying fields, with almost one-third of women in those roles now, says the study. In addition, women over the age of 55 have seen labour market participation rates rise by almost twice the amount of men during this cycle.
"In families in which there is an employed woman in the core-working age demographic, women's earnings now account for a record-high 47 per cent of family income, almost double the share seen in the 1970s."
Women live longer
Women’s longevity is another factor that may explain why women are gaining more economic clout. Women still outlive men and also tend to get married earlier resulting in married women and widows eventually controlling a significant amount of wealth, notes the report.
To learn more, consult the report here.