Advisor Retirements Underscore Need For Stronger Rookie Development

35% of all financial advisors, who manage 40% of industry assets, plan to retire within the next 10 years

August 4, 2026, BOSTON—The anticipated wave of advisor retirements over the next decade is underscoring the need for wealth management firms to better attract and retain the next generation of talent. This shift puts greater pressure on firms to establish comprehensive and effective training programs that provide junior advisors with the tools and skills needed for long-term success, according to the latest Cerulli Edge—U.S. Advisor Edition.

Approximately 35% of all financial advisors, who manage 40% of industry assets, plan to retire within the next 10 years, and more than one-quarter of them express uncertainty about their succession plans. Providing advisors with the resources and guidance needed to develop succession plans and transition books of business to the next generation will be critical for wealth management firms.

However, many practice management professionals have identified challenges in rookie recruitment and development. According to Cerulli, 73% of practice management professionals cite the time required to learn the business as a major challenge, followed by 67% who say day-to-day training takes too much time.

Cerulli recommends firms pursue a longer-term approach to recruiting young, qualified rookie talent. “Rookie advisors placed in larger advisor teams with long-term career development plans will be best positioned to create natural retirement and business succession paths for advisors, who then can monetize their business while transitioning it to highly trained financial advisors within their practice,” says Olivia Morgan, research analyst.

Firms whose practices pursue this approach and emphasize it as part of their recruiting efforts are far more likely to appeal to the most qualified job candidates interested in wealth management, particularly those who favor a long-term, sustainable career development path. “A long-term approach provides both a retention and a recruitment strategy, supporting the development of a pipeline of high-quality existing and new advisors to seamlessly support the transition of industry-wide advisor retirements,” she concludes.

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