Even though the number of retirees in the US is rising, the number of advisors on the whole is on a decline and the trend is set to continue through 2016, according to research by Cerulli Associates.
Tyler Cloherty, associate director of Cerulli Associates confirms that "during the past year, advisor headcount has declined by 1.3% due to terminations, retirements and advisors exiting the industry by choice."
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According to research by the Boston-based consulting group, the five-year compound annual growth rate for the independent channel, for instance, is -5%. The group’s growth rate becomes -2.7% when dually registered reps are included. Wirehouse firms have a -2.4% growth rate.
However, the bank channel is expanding at a 1.5% clip. The RIA channel has a 4.7% five-year compound annual growth rate, and when independent reps are included, that number jumps to 4.9%.
The dually registered channel is doing better with a 5.3% growth rate.
Cloherty added: "Few channels are delivering above-average organic headcount growth. The independent channel is benefiting significantly from advisor movement, but suffers as advisors exit the industry and retire. Wirehouses continue to lose significant assets from advisor movement and have fallen short in replacing talent."
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