Insights | 05.26.21
Financial Advisors Enjoyed Record-High Client Retention Rates in 2020
McKinsey & Company's PriceMatrix report says financial advisors were able to retain their clients last year. Despite the pandemic, the report says client retention set a record at 94.6 percent. That is a small increase from numbers reported in 2019. Advisors were also able to start 7.4 new client relationships last year, but that was a decline from 8.1 new relationships in 2008. Assets per new client reached a new high of $905,000 in 2020. Data shows that customers representing Generation X and Y are slowly becoming the next wave of clients for the industry. Those two cohorts made up 24 percent of wealth management clients in 2020. The average age of new clients is also trending younger, but middle age clients still make up the majority of new clients. Data shows the average age of new clients fell from 57.5 in 2019 to 56.4 in 2020.
Read the full article on Financial Advisor.