As reported in Financial Planning in February, 2020, over 40% of financial advisors, nearly 111,636... will retire in the next decade.
Based on the research firm, Cerulli Associates, report.
The Cerulli report continues with “As advisor retirements begin to accelerate, so does the need for innovative recruiting and retention strategies. Broker-dealers and independent firms are struggling to attract enough new advisor talent to adequately replenish their existing advisor forces,”
“As the next generation of advisors enter the industry, many will do so with the goal of providing comprehensive financial advice to their clients, and will be underserved by firms that direct their training heavily toward product knowledge and sales strategies,” the report states.
The issue is further reported on by Andrew Osterland, CNBC (6/25/19):
For the most part, graduates fresh out of college are not ideal candidates for this kind of work. But with financial advisors entering their 70s and a serious shortage of incoming advisors on the horizon, universities and colleges offering financial planning degrees are becoming a much more important source of new entrants to the industry.
Osterland further quotes the Cerulli report with...
“This issue will become critical in the next five years or so.....The schools will be an important factor in addressing the problem.”
Osterland continues with...
"At the end of the day, the number of graduates from university and college financial planning programs won’t come near to replacing the thousands of advisors expected to leave the industry in the next decade, some industry observers say....Many programs have next to no budget and consist of a professor or two teaching a couple of classes."