Aging Advisor Workforce Creates Succession Planning Crisis

Definition

The wealth management workforce is aging faster than typical professions, creating succession planning and knowledge transfer challenges. Sources identify that advisors are 'on average ten years older than members of similar professions' and note the 'biggest wealth transfer in history' as retiring advisors exit. For solo practitioners and small firms where the owner-advisor is the primary rainmaker and relationship owner, aging creates existential business risk: when the advisor retires, the client relationships and firm value evaporate unless successor is prepared. The problem is structural: wealth advisory work has high barriers to entry (licensing, client relationship building, technical knowledge), making it difficult to develop internal successors quickly. Small firm owners often delay succession planning because: (1) they're still productive and earning well, (2) succession planning is complex and costly, (3) junior talent pipeline is thin. This creates crisis-mode transitions where senior advisors exit unexpectedly or sale becomes only option. Alternatively, owners remain in firms longer, delaying younger advisor development and blocking leadership opportunities.

Why This Matters

Succession planning consulting, client relationship management for continuity, junior advisor recruitment/training, minority stake financing for transitions, buy-sell agreement services, estate planning for advisors, team-based advisor models

Affected Stakeholders

Owner-Advisor, Senior advisors, Small firms with key person risk

Related Business Risks