06.23.23

Here’s How Bad the Financial Advisor Talent Shortage Is

by: Ross Snel

The number of U.S. financial advisors grew by a net 2,579 in 2022, as the number of new entrants into the profession barely offset the number of retirements and trainee failures, research firm Cerulli Associates estimates. Although 18,207 new trainees entered the business last year, 13,169 trainees failed, resulting in what Cerulli describes as a 72% “rookie advisor failure rate.” Meanwhile, an estimated 2,459 advisors retired in 2022. The figures highlight concerns that firms won’t be able to recruit and train enough new advisors to replace a graying workforce. Cerulli estimates that 106,264 advisors, or nearly 37% of the industry total, plan to retire during the next decade. To bridge the gap, broker-dealers and registered investment advisors “must find new avenues for connecting with potential candidates and spreading awareness about the profession,” says Stephen Caruso, a Cerulli research analyst.

Read the full article on Barron's