More than one-third of financial advisors are expected to retire over the next 10 years, putting almost 39% of industry assets in motion, according to a report by Cerulli Associates.

Overall, about 37% of today's advisors are expected to retire over the next decade; by 2023, the headcount of advisors is projected to drop off by 1.4%, according to the report.

Wirehouse (40.7%), independent broker/dealer (40.7%) and national and regional broker/dealer (39.7%) channels have the largest portion of advisors who are planning to retire and transition their businesses within the next 10 years, the report said.

But the report also pointed out that almost one-quarter of advisors across all channels who plan to retire in the next decade do not have a succession plan. Twenty-eight percent said they expect an advisor in their practice to succeed them.

At the end of 2017, the average age of U.S. financial advisors was 52, the report noted.

“While some progress is being made, the industry is struggling to recruit and retain advisor talent that is adequately prepared to inherit the businesses,” Michael Rose, associate director of wealth management at Cerulli, said in a statement. “In an effort to overcome this challenge, firms are boosting recruiting efforts to bring new advisors into the industry and revamping training efforts to improve success rates."

Rose added that B-Ds are working to create attractive succession options for advisors approaching retirement. “It will be increasingly important that firms operate successful training programs in order to attract and train qualified advisors, integrate these younger advisors within teams for whom they can serve as a pipeline of potential successor candidates, and operate effective business succession programs for retiring advisors.”

The Cerulli report noted that national and regional B-Ds have grown their assets under management the most over the past five years, with a compound annual growth rate (CAGR) of 6.5%. That was followed by retail bank B-Ds, which grew at a five-year CAGR of 5%. The national and regional B-D channel also saw an increase in total AUM market share from 15.9% in 2013 to 16.8% in 2018.

Advisors, on average, control $66 million in assets under management (AUM), which is up from $51 million in 2013, representing a five-year CAGR of 5%, the report noted. Most productive are wirehouse advisors, controlling on average $147 million per advisor, which is 124% more productive than the industry average. In contrast, insurance B-D advisors are the least productive, with an average of $12 million per advisor, which is 82% less productive than the industry average.

Cerulli’s research also confirmed a general trend that it has observed about advisors, who at a low but consistent rate have been leaving traditional B-D channels to join RIA channels, where many advisors see a greater opportunity for independence and business ownership.