Financial advisors reported a strong year in 2014, with continued growth in assets under management and revenues, according to the PriceMetrix State of Retail Wealth Management report released Monday.

And yet the industry faces challenges presented by the aging of both advisors and clients, says PriceMetrix, a practice management analytics software firm based in Toronto.

Assets under management for the average advisor reached $97 million in 2014 versus $90 million the year before, PriceMetrix reports. Revenue for the average advisor grew by 13 percent to $655,000 last year, and revenue on assets improved to 0.69 percent, the first increase since the beginning of the financial crisis in 2008.

Advisors also continued to make progress reducing the number of clients they serve. The average number of clients in an advisor’s book fell to 150 in 2014, down from 156 in 2013. At the same time, average client assets increased to $628,000 from $562,000. Overall, since 2011 advisors have reduced the number of clients they serve by 10 percent, according to the report.

The industry also continued its transition to fee-based revenue. The percentage of fee-based assets in the average advisor’s book increased from 31 percent to 35 percent in 2014, while the percentage of fee revenue rose from 47 percent to 53 percent.

By the end of last year, 25% of clients were doing at least some fee-based business with their advisor, as traditional transaction-based clients added fee accounts to their portfolios, PriceMetrix says.

“Financial advisors and their firms should be very pleased with their performance in 2014,” says Doug Trott, president and CEO of PriceMetrix.

However, advisors have to face the challenge that the average age for both advisors and their clients is increasing rapidly, PriceMetrix says. Advisors continue to focus on older clients who have more assets. The proportion of new clients who are under the age of 45 remains at 23%, a level that has not changed since 2011, the report shows.

“Advisors and their firms simply cannot afford to overlook younger clients,” says Trott. “They need to devote a significant portion of their business development efforts to younger clients or their future growth will slow down.”