The wealth management industry is on “a collision course” with a talent crisis as many advisers are quickly approaching retirement age, according to a new survey by J.D. Power. Nearly half (46%) of surveyed advisers said they are within 10 years of retirement, with more than one-fourth (26%) of current advisors already 65 or older.
“The wealth management industry is experiencing a significant generational shift in which the demographics, ways of working and priorities of both clients and advisors are changing rapidly,” said Mike Foy, managing director of the wealth management practice at J.D. Power.
When asked to describe their firm’s culture, just 20% of advisers under age 40 said their firm was conscious of its public brand image, compared to 35% of advisers age 40-64. At the same time, younger advisers placed more emphasis on social media, adviser websites and search engine optimization for marketing as opposed to advisors with longer tenures, who were more focused on webinars and in-person events/seminars.
The survey also found that artificial intelligence was the top technology in which advisers believe their firms should be investing, with 35% of advisers selecting it as the top priority for increased investment.
