Acute Shortage of Wealth Advisors Constrains Growth

Definition

The US wealth management industry faces a critical talent shortage driven by mass retirements and insufficient new talent entry. An estimated 110,000 advisors (38% of current workforce) are expected to retire by 2034, while industry demand for wealth management services continues to grow at 6.4% CAGR. McKinsey projects a shortage of 90,000-110,000 advisors (30-37% of current headcount) by 2034 at current productivity levels. For owner-advisors, this creates competitive pressure: approximately 27,000 advisors switch firms or go independent annually, and recruiting packages have risen substantially as firms compete for scarce talent. Small independent advisors lack the recruiting resources of larger firms, making talent acquisition progressively more difficult and expensive. The gap between supply and demand means client acquisition becomes constrained by advisor capacity rather than market demand.

Why This Matters

Advisor recruiting platforms, training/certification programs for career changers, fractional advisor networks, advisor succession planning consulting, talent marketplace automation

Affected Stakeholders

Owner-Advisor, Wealth Advisor, Small wealth management firms

Related Business Risks