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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