Assets under management are at risk from an ageing population of financial advice professionals, according to a report by US-based analytics firm Cerulli Associates.
According to the report, 43 per cent of US advisers are “either at or approaching retirement”, with fund managers and custodians at risk as advisers make their exit from the industry.
The average age of an American financial adviser was found to be 50.0, with 43 per cent over the age of 55 and nearly one-third in the 55 to 64 age bracket.
Cerulli Associates spokesperson Kenton Shirk said the financial advice industry is suffering from a shortfall between younger and older advice professionals.
“Broker/dealers continue to struggle to recruit new young advisers into the industry to offset those advisers who are nearing retirement,” Mr Shirk said, according to the US-based publication Credit Union Times.
Product providers and other stakeholders need to provide support and training on succession planning issues to financial advice firms, Mr Shirk suggested.
SUBSCRIBE TO THE IFA DAILY BULLETIN
- 19 Oct 2018Life insurer fires 50, kills outbound sales businessBy James Mitchell
- 19 Oct 2018Strategic plan for AFCA releasedBy Eliot Hastie
- 18 Oct 2018Clique Paraplanning launches practice portalBy Reporter
- 18 Oct 2018Challenger announces new Netwealth dealBy James Mitchell
- 18 Oct 2018Aussies say royal commission won’t change their view of adviceBy James Mitchell
- 18 Oct 2018Hire younger advisers to get younger clients, paper suggestsBy Adrian Flores
- view all