A client’s age also comes into play. Older clients are far more likely to stay with their advisors than younger ones. For example, the study found that a 30-year-old client has a retention probability of 82 percent, a 40-year-old client has an 87 percent probability and a 50-year-old client has a 90 percent retention probability.
“These data points should give pause to those advisors who might expect or hope that pursuing younger clients will produce long-term client relationships,” commented Trott. “While younger clients may have longer time horizons with respect to their financial plans, the data does not support the claim that they intend to spend many years with one advisor.”