The wealth management industry is entering a period of significant transition: Demand for advice continues to rise, while the supply of financial advisors is under pressure from an aging workforce and a limited pipeline of new entrants. This imbalance is shaping the future of growth, succession and competition.
A Talent Gap in the Making
Industry research underscores the scale of the challenge:
- McKinsey projects a shortfall of roughly 100,000 advisors by 2034, driven largely by retirements.
- Nearly 38% of today’s advisors are expected to retire within the next decade, according to Cerulli Associates.
- Growth in new advisors has not kept pace. In 2022, head count increased by only 2,700 across the industry.
These numbers suggest a structural disparity: more investors seeking advice while fewer advisors are available to provide it.
Why This Matters
For advisory practices, the shortage has direct implications. With fewer advisors in the market:
- Client expectations may continue to rise. Investors will likely seek firms that can provide depth of service and long-term continuity.
- Talent becomes a differentiator. Recruiting and retaining skilled professionals will influence both growth and succession.
- Valuations reflect sustainability. Firms with established continuity plans and scalable structures may be better positioned in transitions or acquisitions.
The advisor shortage highlights a bigger test: the ability of firms to adapt to change.
Four Core Attributes of a Durable Practice
Responding to the advisor shortage requires more than incremental adjustments. It calls for a deliberate focus on building capacity, attracting talent and sustaining client relationships over time.
- Technology and Operational Efficiency
Advisors are asked to do more with less. Technology may help bridge the gap by automating workflows, reducing manual processes and enabling greater productivity per advisor. Integrated planning software, client portals and communication platforms are no longer optional—they’re foundational to scale.
- Talent Strategy and Development
The shortage means firms cannot rely on opportunistic recruiting. A structured approach is needed, including:
- Mentorship and training for next-generation advisors
- Clear paths for advancement and ownership
- Defined incentives to retain high performers
Practices that cultivate professional growth may be better able to preserve stability and maintain client continuity.
- Specialization and Differentiation
As the market grows more competitive, advisors are increasingly asked to navigate complex needs such as business succession, multigenerational wealth transfer and philanthropic planning. Building specialized capabilities can help deepen client relationships and support growth.
- Succession and Continuity
With many advisors nearing retirement, continuity planning is essential. Without it, clients may face disruption, and firms may risk diminished value. Documented succession plans and structured ownership transitions support both client confidence and practice durability.
Practical Actions to Take Now
The advisor shortage is a long-term trend, but steps taken today can strengthen resilience and position a practice for sustainable growth.
- Audit your workflows and technology. Look for redundancies and streamline processes to free up capacity for higher-value client work.
- Map out a talent pipeline. Define roles, training opportunities and clear advancement paths from junior to senior advisor.
- Develop specialization areas. Differentiate your practice by deepening expertise in complex client needs.
- Prioritize retention and ownership. Keep key contributors engaged through meaningful incentives and opportunities to participate in growth.
- Commit to succession planning. Establish a framework that provides continuity for clients and clarity for future transitions.
Looking Ahead
The anticipated shortage of financial advisors represents both a challenge and an inflection point. Firms that evaluate their structures now—focusing on efficiency, talent, differentiation and continuity—may be better positioned to navigate an environment where client needs may continue to grow faster than the advisor population.
For advisors considering how to grow or transition, this is an important time to take stock of your foundation and align strategy with the realities of the marketplace. At Mariner, we provide resources and infrastructure designed to help advisors strengthen those foundations and prepare for long-term resilience.
This article is for informational purposes only and reflects general industry trends, not individualized advice. Any forward-looking statements are based on current research and may change. Outcomes will vary, and there is no assurance that any strategy or approach will succeed. While the information is believed reliable, its accuracy and completeness cannot be guaranteed. Past trends may not predict future conditions, and both investing and practice management involve risk, including the risk of not achieving intended results.
Mariner is the marketing name for the financial services businesses of Mariner Wealth Advisors, LLC and its subsidiaries. Investment advisory services are provided through the brands Mariner Wealth, Mariner Independent, Mariner Institutional, Mariner Ultra, and Mariner Workplace, each of which is a business name of the registered investment advisory entities of Mariner. For additional information about each of the registered investment advisory entities of Mariner, including fees and services, please contact Mariner or refer to each entity’s Form ADV Part 2A, which is available on the Investment Adviser Public Disclosure website (www.adviserinfo.sec.gov). Registration of an investment adviser does not imply a certain level of skill or training.
