Firms also need to address succession planning for advisors nearing the end of their career, so they can transition out of the business in an optimal way for themselves and their clients, the study says. Ninety-four percent of advisors with 20 or more years of experience who say they definitely will remain with their firms for the next one to two years indicate their firms offer succession planning resources and tools.
Foy says the cost for firms to recruit experienced advisors to replace those who leave is likely to continue to increase as more advisors move into retirement, underscoring the importance of training and retaining talent.