More than one-quarter of advisors are planning to leave the business over the next decade and there may not be enough qualified bodies to replace them, according to Ameriprise Financial.

Action needs to be take now to prevent a talent gap, said Manish Dave, senior vice president of business development for experienced advisor recruiting at Ameriprise Financial.

“There is a graying of financial advisors, which is a challenge but also an opportunity,” Dave said in an interview. “The next generation of advisors will play a crucial role in navigating the changing landscape of wealth management.”

A recent survey of 385 financial advisors by Ameriprise showed that 26% of advisors from across the industry anticipate retiring within the next 10 years. According to the U.S. Bureau of Labor Statistics, there were about 330,300 financial advisors in the U.S. That’s more than 82,000 people leaving the ranks in the U.S. alone.

“The impending wave of retirements offers wealth management firms the chance to address the talent gap and adapt to the evolving needs of younger clients, reshaping their approach in the process,” Ameriprise said. “By proactively preparing for this transition, firms can attract and onboard the next generation of advisors, fostering innovation, fresh perspectives, and a deeper understanding of emerging clients.”

Individuals being attracted to the profession today are not the same as those who were drawn to it when the profession was new, Dave said. When the financial advice profession was born, people felt a degree in advanced math and accounting were needed.

“Those still are important, but not as critical as they once were, which is reflected in the evolution of college courses offered today that include more wealth management and behavioral classes. The industry is more focused on managing the clients’ financial lives,” he explained. “I think this is good and healthy for the industry.”

In addition, there is more of an emphasis in a team approach, and even the marketing approach for firms is different today, he said.

To attract more people to the industry, firms like Ameriprise have leadership training programs so that advisors can develop their careers. In addition, study sessions for advanced certifications are provided.

Advisors need support in adopting new technologies, such as the ability to text clients in a way that meets compliance standards. “Advisors need to deliver great client experiences in order for them to grow faster and create a more valuable business,” he said.

Looking at the industry from the other side, advisors need assistance when it comes time to turn over their work to a new face and need to ability to attract the young, potential leader in taking over from a veteran, Dave said.

“In order for the transition to be successful, clients have to be transitioned from the exiting advisors to a new team over time,” he said. “The clients are going to be thinking about what happens when you retire, just like you are.”

Bringing in the next generation of advisors can look different for each firm. For instance, Ameriprise provides a number of ways for advisors to retire either gradually, or all at once. Each firm needs its own strategy that looks to the future of the changing financial advice industry, Dave said.