08.11.26

1 in 4 Retiring Advisors Unsure of Succession Plan

by: AdvisorHub

More than a quarter of financial advisors planning to retire within the next decade remain uncertain about succession plans, according to Cerulli Associates. Overall, 35% of advisors, representing about 40% of industry client assets, are expected to retire during that period, highlighting a significant talent and continuity challenge. Firms face difficulties developing successors because training is time-consuming and costly, while roughly 72% of new advisors historically fail to complete training. Cerulli recommends placing junior advisors on established teams, creating clear career paths and gradually giving them responsibility for client relationships. Such approaches can improve retention, strengthen succession planning and help retiring advisors transition their practices to qualified successors.

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