The Growing Demand for Wealth Management Services
The financial landscape is evolving rapidly. As we move through 2025 and beyond, the demand for wealth management services remains strong. A recent McKinsey report highlights that advisory revenues have grown from $150 billion in 2015 to an estimated $260 billion in 2024, driven by clients’ increasing preference for human advice. This trend is expected to continue, with the number of human-advised relationships projected to grow up to 71 million by 2034.
However, the industry faces a significant challenge—a potential shortage of 100,000 advisors by 2034. This gap is exacerbated by an aging workforce, with over 110,000 advisors expected to retire in the next decade while the rate of new entrants lags behind.
The Aging Advisor Population: A Countdown to Shortage
Despite strong demand, the advisor workforce has grown at a meager 0.3 percent per year over the past decade, according to McKinsey. With the advisor population skewing older, retirements are now outpacing new recruitment. If firms fail to address this issue, the industry could face a talent crisis, jeopardizing growth and client service continuity.
Strategies to Overcome the Advisor Shortage
To bridge this gap, wealth management firms must focus on two critical areas:
- Boosting Advisor Productivity – Firms must improve efficiency through technology, AI-driven solutions, and workflow automation to allow advisors to serve more clients effectively.
- Expanding Talent Pipelines – Attracting young professionals and career switchers into the profession through structured onboarding, training programs, and a reimagined advisor value proposition.
Additionally, McKinsey emphasizes the need for firms to engage more female advisors, as women increasingly take on key financial decision-making roles. Companies that successfully attract diverse talent will gain a competitive advantage.
Succession Planning & AI-Driven Retention Strategies
One of the most pressing concerns in the advisor shortage is succession planning—ensuring that retiring advisors transition their books of business effectively without disrupting client relationships.
Leveraging AI & Automation to Mitigate the Talent Gap
AI and automation present a once-in-a-generation opportunity to reshape the advisor model. By integrating AI-driven solutions, firms can:
- Enhance Advisor Productivity – AI-powered tools can automate meeting prep, financial plan creation, compliance, and client follow-ups, allowing advisors to focus on high-value interactions.
- Streamline Lead Generation – Centralized AI-assisted marketing can identify and pre-qualify prospects, freeing advisors from time-consuming client acquisition tasks.
- Facilitate Continuity Planning – AI can predict advisor attrition risk and recommend tailored succession strategies, ensuring smooth practice transitions.
How FindBob is Helping Firms Retain and Transition Advisors
At FindBob, we recognize that succession planning is no longer a long-term concern—it’s a now problem. As the industry grapples with the advisor shortage, our platform enables enterprises to seamlessly transition books of business, distribute orphan accounts, and retain assets by providing AI-driven insights into advisor behavior and attrition risks.
Our Advisor Volatility Index (VIX) helps firms identify at-risk advisors before they disengage, allowing proactive retention strategies. Additionally, our AI-powered marketplace simplifies continuity planning and in-network M&A, making it easier for firms to match retiring advisors with successors within their network.
The Path Forward
The wealth management industry stands at a crossroads. Firms that invest in AI, automation, and structured succession planning will be best positioned to navigate the advisor shortage. Those that fail to act may find themselves struggling to maintain client relationships and growth.
How Is Your Firm Preparing?
The future of wealth management hinges on bold action. How is your firm tackling the advisor shortage? Are you leveraging AI and automation to bridge the talent gap? Share your thoughts in the comments below!
This blog post references data and insights from: McKinsey & Company, “The Advisor Shortage in US Wealth Management,” February 2025.
