The study revealed that 33% of the older advisors say that they do not need a team to achieve the goal. A survey was conducted among 357 advisors and the study showed the anticipated path, which will lead the next generation of advisors to flourish in a changing industry.
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Every year for the next 10 years, 12,000 to 16,000 advisors in all segments of financial advice will retire. To meet the demand, industry will need to cumulatively add 237,000 new financial professionals. Younger advisors represent the future of the industry at a time when Americans need more financial advice than ever.
The study also revealed that younger advisors view success very differently from their older counterparts. These differences are in the mindset, preferences and behavior.
As per the survey, firms should focus on the key differences among older and younger advisors over the next several years.
Among independent advisors, 83% are satisfied with being an independent advisor. Advisors aged 50-59 (46%) and 60+ (53%) are significantly more satisfied with being independent compared to the younger age groups (31% 25-39 and 19% 40-49).
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By GlobalDataLess than half of all advisors think personal gain and reward plays a major role in personal success.
Advisors aged 25-39 are more likely to say gain/reward plays a major role compared to all other age groups. Intuitively younger advisors are more money conscious and are significantly more likely to want clients to appreciate the services they provide compared to older advisors.
In the youngest advisor age group (25-39) 73% of advisors believe "having clients who appreciate the value they provide" is one of the top three most rewarding experiences of being an advisor. This compares to 57% for the 40-49 age range, 57% for 50-59 age range and 56% for the 60+ age range.
Younger advisors are much more likely to embrace and use technology. As per data 85% of advisors aged 25-39 describe themselves as being "technology-embracing," compared to 70% and 73% for advisors aged 40-49 and 50-59, respectively. Advisors 60+ in age are far less likely to be technophiles: only 56% describe themselves as technology-embracing.
