The financial advisory profession is quickly approaching its own “generational crossroads” moment.
In the next decade, a wave of retiring advisors will leave a significant talent gap as too few new entrants step in.
Some see this as a crisis - and they may be right. But it’s also a once-in-a-lifetime opportunity for a new generation of financial professionals to step in and redefine the industry.
Why?
Because the traditional, baby boomer-era approach to wealth management - buy-and-hold strategies, 60/40 portfolios, and face-to-face meetings - is quickly fading. And as baby boomers begin divesting (spending their hard-earned wealth), a new wave of investors is taking center stage - one that thinks and acts differently.
No - they want digital-first, tech-savvy professionals who understand alternative investments, tactical strategies, and even digital currencies.
Simply put, it’s a whole new game - with a whole new rulebook.
Yet, with nearly 40% of today’s advisors set to retire and too few stepping up to replace them, one question remains: Who will guide this next generation of wealth?
Well, for those willing to adapt, innovate, and learn, the opportunity is enormous.
The Looming Talent Drain
According to a Cerulli Associates report in 2023, approximately 109,093 financial advisors are projected to retire within the next ten years. This accounts for 37.5% of the current advisor workforce and represents professionals managing over 41.5% of total industry assets. Thus, as these experienced advisors exit, the need for new talent to replace them has never been greater.

Figure 1: Cerulli Associates, Dunham, January 2025
Yet, the industry is struggling to recruit and retain the next generation of advisors. . .
The same report noted that in 2022, only 2,579 new advisors entered the profession - a fraction of what’s needed to balance out the retirements.
This growing mismatch raises concerns about who will manage the massive transfer of wealth happening over the next few decades.
The High Failure Rate of New Entrants
Making matters worse is the issue that becoming a successful financial advisor is notoriously difficult.
Studies show that rookie financial advisors face a whopping 72% failure rate within the first few years of their careers. That means every three of four drop out.
Such a high attrition rate can be attributed to several factors – such as:
- High Client Acquisition Pressure – Many firms expect new advisors to build their client base from scratch, which can be challenging without strong networking skills or personal connections.
- Complex Licensing and Regulatory Hurdles – Unlike other professions, financial advisors must obtain multiple licenses and continuously meet compliance requirements.
- Compensation Structures That Favor Established Professionals – Many firms still rely on commission-based pay, making it difficult for new advisors to earn a stable income in their early years.
The Untapped Opportunity
Despite these challenges, the financial advisory industry is full of opportunity for those willing to step up.
For starters, fewer new entrants + high failure rates = a bigger market share for those who succeed.
- Meaning that supply and demand are in your favor - the industry needs new talent, and clients need advisors who understand their world.
Thus with the retirement of seasoned professionals amid the ongoing generational wealth transfer, younger advisors who establish themselves now could be positioned for significant success.
Why This Matters:
- Client Demand is Growing – As older generations age and divest to the younger generation, the need for financial planning services is surging.
- Next-Gen Clients Want Advisors Who "Get" Them – Millennials and Gen Z seek advisors fluent in technology, digital communication, and alternative investments.
- Firms Are Looking for New Talent – With so many advisors leaving, firms are actively seeking younger professionals, often offering incentives like training programs, salary-based compensation, and mentorship.
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How to Bridge the Gap?
For the industry to close this growing talent gap, firms must rethink how they attract and retain new advisors. Some solutions include:
- Structured Mentorship Programs – Pairing new advisors with seasoned professionals can increase their chances of long-term success.
- Salaried Compensation Models – Reducing reliance on commission-based pay can help new advisors survive their early years.
- Leveraging Technology for Lead Generation – Using digital tools and social media to attract clients can reduce the pressure on cold-calling and traditional sales approaches.
Final Thoughts
The financial advisory profession is at a turning point.
The old guard is leaving. The new guard is nowhere in sight. And the wealth transfer? Well, it’s already in motion and quickly picking up speed.
Advisors who can adapt, build relationships, and embrace modern client engagement strategies will find themselves in an industry with high demand, strong earning potential, and long-term career stability.
So, the question is: who will step up to fill the gap?
Sources:
1. The Financial Advisor Industry Has a Headcount Problem | Cerulli
2. Here’s How Bad the Financial Advisor Talent Shortage Is
Disclosures:
This communication is general in nature and provided for educational and informational purposes only. It should not be considered or relied upon as legal, tax or investment advice or an investment recommendation, or as a substitute for legal or tax counsel. Any investment products or services named herein are for illustrative purposes only and should not be considered an offer to buy or sell, or an investment recommendation for, any specific security, strategy or investment product or service. Always consult a qualified professional or your own independent financial professional for personalized advice or investment recommendations tailored to your specific goals, individual situation, and risk tolerance. All examples are hypothetical and are for illustrative purposes only.
Information contained in the materials included is believed to be from reliable sources, but no representations or guarantees are made as to the accuracy or completeness of information. This document is provided for information purposes only and should not be considered as investment advice.
Dunham & Associates Investment Counsel, Inc. is a Registered Investment Adviser and Broker/Dealer. Member FINRA/SIPC. Advisory services and securities offered through Dunham & Associates Investment Counsel, Inc.