Despite many advisors’ desire to take advantage of the great wealth transfer to younger generations, most still are concentrating their practices on older adults, according to InspereX, a technology-based fixed income and structured products distribution and trading firm based in Delray Beach, Fla.

Death is the primary reason for losing clients, followed by a lack of sufficient time to work with clients as a distant second reason, which suggests advisors are falling short on taking advantage of the generational wealth transfer, according to the InspereX's Advisor Pulse Survey of 487 financial advisors.

Advisors said an average of 18% of their clients are under the age of 50, while the majority of clients are at least in their 60s, the survey said.

“Given the combination of many advisors citing death as the top reason for losing clients, coupled with the small percentage of advisors working with clients under the age of 50, it’s likely advisors are missing opportunities to retain business and engage the next generation of investors and heirs,” Chris Mee, managing director at InspereX, said in a statement.

Although 60% of advisors agreed that the younger generation is being influenced to go elsewhere, such as online, for advice, 87% said pursuing younger prospects is still worthwhile, the survey showed. At the same time, the majority of assets of 50-and-under clients have come from the clients’ jobs, according to 73% of respondents. Only 12% said the majority of younger client assets came from an inheritance.

Eighty-two percent of financial advisors said they have won business from other advisors because the other advisors did not communicate with clients. In addition, the advisors said they have won business from other advisors who failed to meet client performance expectations, did not offer enough new or innovative ideas, or gave bad advice.

Customization of portfolios is a key differentiator for advisors for 72% of advisors, the survey said.

Thanks to technology, advisors are expanding their geographic bases, according to the survey. Half said they are adding new clients outside of their local areas and almost half said they are receiving more referrals for clients outside their local areas. Only 31% said their business was only local.

Despite their efforts, the advisors said some of their clients are listening to bad ideas from their adult children or others. They added that some clients have unreasonable expectations, others are not financially educated, and some are too passive.

“We know younger investors need for advice will multiply as they accumulate assets and their financial picture becomes more complex," Mee said. "It’s important now for advisors to get familiar with how the younger generations are learning about investing, so they can establish relationships based on common ground.”