Kestra commissioned research to explore advisor succession planning from the perspectives of both G1 advisors, who are firm owners planning to retire, and G2 advisors, who have been identified as successors or potential successors. Research uncovered misalignment when it comes to leadership transition planning.
Many owners eyeing succession feel confident about their plans, but just 6% of those planning to retire within 10 years have a fully documented succession plan. Meanwhile, many intended successors feel undervalued and unprepared—some even on the verge of walking away. In an industry facing a scarcity of next-generation talent, that’s a risk no firm can afford.
269 financial advisors were surveyed. Key findings include:
- Over 50% of G1s struggle to relinquish control and more than 4 in 10 fear their clients will not be taken care of as well if they leave.
- One in three potential successors say they would consider leaving without a clear succession timeline.
- G2s want tangible incentives, yet fewer than half (41%) of G1s nearing retirement have transferred any equity to successors. One in four G2s would consider leaving in the absence of being given equity or a timeline for receiving equity.
- Only 35% of G2s feel fully prepared to assume leadership, pointing to the need for additional leadership development and training. The top two areas G2s would like to take on more leadership responsibilities are strategic planning (49%) and business financials (47%)—the very skills they need to step into ownership confidently.
This research garnered media coverage in AdvisorHub, Wealth Solutions Report, and Business Wire among others.
