How to Avert It, Says Cerulli

  • Wealth management industry facing a demographic crisis
  • 37% of advisors expected to retire in the next decade
  • Cerulli calls for firms to improve mentoring programs
  • Attracting and retaining young talent is crucial

The wealth management industry is on the brink of a major demographic crisis, as a new study from Cerulli Associates reveals that the number of new advisors entering the field is barely keeping up with the number of retirees. In the next decade, over 37% of the workforce, or approximately 109,000 advisors, are expected to retire. To address this challenge, Cerulli is urging firms to reevaluate their mentoring programs and focus on developing the next generation of advisors. Attracting and retaining young talent will be crucial for the future success of the industry.

Public Companies: Cerulli Associates ()
Private Companies:
Key People:

Factuality Level: 7
Justification: The article provides information from a study conducted by Cerulli Associates, which suggests that the advisor industry is facing a demographic challenge with a significant number of advisors set to retire in the next decade. The article also mentions the need for firms to revisit their mentoring programs to develop the next generation of advisors. However, the article lacks specific details and context about the study and does not provide a balanced perspective on the issue.

Noise Level: 3
Justification: The article provides relevant information about the demographic challenge faced by the advisor industry and the need for mentoring programs. However, it lacks in-depth analysis, evidence, and actionable insights. It also diverts into unrelated territory by mentioning the need to sign in as a subscriber.

Financial Relevance: Yes
Financial Markets Impacted: The financial advisor industry

Presence of Extreme Event: No
Nature of Extreme Event: No
Impact Rating of the Extreme Event: No
Justification: The article discusses the significant demographic challenge faced by the advisor industry, with a large number of advisors set to retire in the next decade. This could have implications for the industry and the need for firms to develop the next generation of producers.

Reported publicly: www.barrons.com