We’re Running Low on Advisors, What can GenZ Do about it?
The Financial Advisory industry is facing a massive shortage of talent, presenting huge opportunities for GenZ advisors willing to step up.
By 2034, the advisor workforce is projected to decline to a point where the industry will face a shortage of 100,000 advisors. Yet, the demand for fee-based advisory relationships has grown from $150 billion in 2015 to $260 billion in 2024, while the number of advisor client relationships is expected to increase by 28 to 34 percent over the next decade. If you’re an aspiring or current GenZ advisor, the industry needs you. How can you position yourself to take advantage of this trend?
Master AI Tools, It’s Your Competitive Edge
It’s no secret that AI is impacting every industry on the block. By 2034, 30 to 40 percent of advisors will use AI driven tools to increase productivity by up to 12 percent. AI won’t replace advisors, but advisors who use AI will replace those who don’t. As a GenZ advisor, understand that AI is in its infancy. If you can position yourself to be an expert within a team of aging advisors, you would be providing immediate value. Use AI to boost a team’s productivity, whether it’s using an AI to assist in note taking for client meetings, creating financial plans and investment proposals, handling administrative tasks, or conducting investment research. Want to be a standout newbie? Be the person who understands AI.
Don’t Go Solo, Join a Team & Play the Long Game
The wealth management industry is shifting away from solo advisors, and for good reason. McKinsey reports that advisors on teams grow 20 percent faster than solo advisors and tend to retain more assets. This is a significant growth rate, but if this doesn’t convince you, here are a few more reasons why. Most teams provide a salary at the beginning. This means you can learn before you earn. You’ll gain experience without the traditional “sink or swim” pressure that turns many young advisors away from the industry. Additionally, joining a team provides a path to higher earnings. Begin as a junior advisor or support specialist, then transition into a producer role as you gain experience and confidence. Joining a strong team doesn’t mean you can’t hack it; it’s a strategic move that positions you for long term success.
The Problem with Recruitment, Here's why it’s an opportunity
Unlike career paths in investment banking, consulting, or private equity, wealth management lacks a clear path for young talent. This often leads to confusion around compensation structures and career progression. Aspiring advisors also tend to hear more about the industry's high failure rates rather than a structured roadmap to success. These factors do little to promote the profession. While transparency is important, the focus should be on providing a clear structure and pathway to success rather than emphasizing failure. For GenZ advisors, this means being especially strategic about the moves you make. Look for firms with rotational programs that are beginning to emerge and aim to place young talent on a defined career path. Do your research and actively network with firms and professionals who can offer insight into whether a firm provides real development opportunities or follows a "sink or swim" approach. Finally, invest in yourself. This could mean starting the Certified Financial Planner coursework, taking the Securities Industry Essentials (SIE) exam, or preparing for the Investment Advisor Representative (Series 66) exam, which I will cover in a later post. The wealth management industry is working to build out better career structures, but GenZ advisors should take the initiative to learn about the industry and position themselves for the best opportunities.
Women are massively Underrepresented
Only 15 percent of financial advisors are women, despite making up 60 percent of college graduates. Additionally, CFP research says, more than 2 in 3 women serve as there households primary decision maker for investments. The wealth management industry is leaving talent on the table by failing to recruit more women into the field. Firms that recognize this gap and take the steps to attract diverse talent will have a competitive advantage in the coming years. If you're a GenZ woman, now is one of the best times to enter the field. Firms that focus on the talent found in diverse communities will thrive.
Succession Planning Don’t bet on it, but plan for the possibility
110,000 advisors will retire in the next 10 years, representing 42 percent of industry assets. Becoming a successor to a retiring advisor is one of the fastest ways to grow. GenZ advisors should look for teams where senior advisors are 5 to 10 years from retirement and demonstrate their value early while positioning themselves as long term successors. That said, don’t assume you’re next in line. Instead, focus on building real value. Consider ways of strengthening your position by obtaining industry recognized certifications to expand your knowledge base. Gain the hard technical skills that make senior advisors trust you with clients. Lastly, build your own network don’t rely on just one succession plan. Waiting around for an advisor to hand you their book is a risky move. Instead, focus on becoming indispensable to the team. If succession happens, it’s a bonus.
The Industry Rewards Hustle
The demand for advisors is massive, and it’s only going to continue to rise. If you’re ambitious, willing to learn, proactive about networking, and truly care about making a difference in people’s lives, there’s never been a better time to enter wealth management. Start now by building the skills and getting in front of the right people.
What do you think? Do you see yourself going solo or joining a team? What’s your biggest concern about entering the industry? Reply and let me know. If you have an idea or a topic you want to learn about, feel free to reach out. Subscribe if you found any value in the information I’m sharing.
Sources: McKinsey & Company, CFP Board
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