The Impending Succession Cliff

Consider these statistics from Cerulli, which, no matter how many times we see them reported, never seem to get any better:

  • Nearly 40% of industry advisor headcount will retire in the next decade
  • Of those, 26% are unsure of their succession plan
  • 71% say finding qualified buyers is a major challenge in succession plan preparation.

The succession crisis and talent shortage loom at the same time as advisor retirements accelerate, and many advisors are starting to wonder if a profitable retirement is even possible. In this guide, Cerulli researchers discuss the implications for today’s advisors, as well as some helpful insights to help prepare for the future, among them:

  • Start the process early because it will likely take longer than anticipated
  • Determine priorities when evaluating a potential successor
  • Pair junior and senior advisors together in client meetings to build rapport and ease the transition experience for clients
  • Remain actively engaged in the process. Training a successor is an ongoing, daily commitment.

Also included in the report (on pg. 6) is an interesting checklist of Potential Succession Plan Pitfalls.

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