Average Age of Financial Advisors in America: Key Stats
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The number of financial advisors is expected to drop by around 0.2% each year. The average age of financial advisors is over 40, and they make up 61% of the workforce.
In this article, we’ll break down the latest statistics about the average age of a financial advisor, what that means for you, especially if you’re retired or planning to be, and want long-term support.
Key Insights
The average age of financial advisors is over 40, and they make up 61% of the workforce.
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On average, financial advisors are 10 years older than professionals in similar careers.
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In March 2024, 68% of those taking the CFP exam were under 40, and 37% were under 30.
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Over 105,000 financial advisors plan to retire in the next decade.
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The advising industry could face a shortage of 100,000 financial advisors by 2034.
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How Old Are American Financial Advisors?
Financial advisors in the U.S. are getting older and faster. On average, they’re 10 years older than professionals in similar careers. That matters, especially for retirees looking for long-term planning support.
Roughly 110,000 advisors, or 38% of the current workforce, are expected to retire within the next decade. These advisors manage about 42% of the industry’s total assets, making their departure a big deal. To keep up with future demand, the advisory services will need between 320,000 and 370,000 advisors by 2034.
There is a fresh wave of interest from the next generation. In March 2024, 68% of those taking the Certified Financial Planner (CFP) exam were under 40, and 37% were under 30.
The CFP Board now expects the number of certified planners in the U.S. to cross 100,000, covering about one-third of all retail financial advisors. However, even with new talent entering the field, the pace may not be fast enough to fill the gap left by retirements.
Average Age by Ethnicity
When you break down the demographics by ethnicity and gender, the average advisor age shows a consistent trend:
- Asian males average 40, females 43
- White males and females both average 44
- Black males average 42, females 44
- Hispanic males average 41, females 45
- Among unknown ethnicity, males average 41, females 46
Financial Advisors: Trends, Services, and Challenges
According to Cerulli Associates, over 105,000 advisors plan to retire in the next decade. That’s 37.4% of the industry headcount, and they currently manage 41.4% of total assets. For retirees relying on long-term financial guidance, that kind of turnover matters.
On average, a financial professional stays in the role for just 1 to 2 years of experience. In some years, up to 70% of new advisors leave within their first year. Combine that with the fact that only 11% of advisors offering financial planning are under 30.
What Do Financial Advisors Actually Do?
According to the U.S. Bureau of Labor Statistics, 63% of personal financial advisors focus on securities, commodities, financial goal setting, and financial planning services. In 2022, the industry included nearly 400,000 advisors, with 30.7% being women and 69.3% being men. Most worked in the 30 to 44 age range, which made up over one-third of the total workforce.
Investment Management
The number of SEC-registered investment advisors hit a record high of 15,396 in 2023. investment advisers served 56.7 million clients, up 4.4% from the last year. Total assets under management rebounded by 12.6%, reaching $128.4 trillion, matching the previous record from 2021.
On the state level, 16,296 advisers met client needs and managed funds for over 830,000 individuals, with 97% of those clients being everyday investors.
Retirement Planning and Estate Planning
In 2023, the median annual wage for personal financial advisors was $99,580, showing the value placed on their expertise, especially in retirement planning. Still, only 19% of Americans regularly meet with an advisor, even though retirement is often the biggest financial decision of their lives.
When it comes to estate planning, the gap is even wider. While 93% of clients say they need these services, only 22% actually receive estate advice from their advisory firm, and 16% of people who created a trust, will, or estate plan did so without consulting any professional at all.
Impact of an Ageing Advisor Workforce
Many aging advisors are struggling to deliver the kind of personal, hands-on service their clients need. 28% say they don’t have enough time to spend with clients. Instead, more of their day is spent dealing with administrative work and compliance. And 1 in 5 advisors plans to retire within the next five years.
That’s not the only concern. 30% of employee advisors and 28% of independent advisors are uncertain about their job, which suggests many are feeling burned out or disengaged.
Fewer Advisors, More Demand
According to McKinsey, the industry could face a shortage of 100,000 advisors by 2034 if productivity remains at today’s levels. That kind of shortfall matters especially for retirees who want consistent advice and stable long-term support.
Older Advisors Are Working Harder, Earning Less
The top 20% of advisors, who are often the most experienced, got older last year. Their average age rose to 46, and their industry tenure increased to 21.7 years.
Additionally, their average assets under management (AUM) dropped by 7.8%, down to $279.4 million. At the same time, they served more households: 291 clients in 2023, up from 252 the year before. This means there was less wealth management per client, falling from $1.38 million to $915,800.
That drop suggests they’re working harder, for more people, with less return per household, and it reflects the growing competition across the financial advisor job industry.
Younger Advisors Aren’t Filling the Gap Yet
The remaining 80% of advisors saw a different trend. Their average age dropped from 44.0 to 39.9 between 2022 and 2023. Experience levels also fell, with industry tenure shrinking from 17.6 years to 14.5.
This younger group also reported lower results:
- 14% decline in AUM
- Serving fewer clients than the year before
- 9.4% drop in AUM per household
While younger advisors are entering the profession, their impact is limited for now. The experience gap is real, and it may affect the quality of service you receive.
Client-Advisor Age Gap: Does it Matter?
Trust in financial services is up across the board, but one group is driving it more than others: millennials. They report the highest trust levels, with Generation X not far behind.
Even robo-advisors, once seen as risky, are now trusted by a majority of investors aged 25–34.
Younger investors tend to focus on:
- Short-term goals like home buying and emergency savings
- Simpler, tech-driven advice options
- Flexibility over deep, personal relationships
Meanwhile, older investors, especially those 65 and up, often want:
- A long-term relationship with a trusted advisor
- Guidance on retirement income, social security, estate planning, and life insurance
- Face-to-face conversations and hands-on service
Here’s where the age gap comes into play:
- More than 70% of millennials prefer tech tools over human advisors
- Only 30% of baby boomers feel the same way
If you’re in your 60s or 70s, a peer might better understand the financial decisions you’re facing. On the flip side, if you have a younger spouse or want someone who can stick around for the next 20+ years, working with a younger advisor may be a smart move.
The Future of Financial Advice
The future of financial advice is evolving, and younger talent is leading the charge. Over the next decade, younger advisors will have a significant role in shaping the industry. Here’s a quick look at the trends:
Technology’s Growing Role in Building Trust
Technology is becoming a key factor in building trust within the financial services industry. Both retail and institutional investors view it as a valuable tool that not only creates trust but also multiplies it:
- 50% of retail investors believe technology increases trust in their financial advisor.
- 87% of institutional investors feel the same way about their asset managers.
The growing reliance on technology for trust signals a shift towards more digital-first financial services.
Tech-Driven Investment Products
Given the high level of trust in technology, it’s no surprise that many investors are moving toward tech-driven investment products. Here’s how preferences break down:
- 56% of retail investors prefer to invest in products developed by tech giants like Amazon, Google, or Alibaba rather than traditional financial institutions.
- 37% of institutional investors share this preference, favoring technology firm products over financial institution offerings.
FAQs
64% of financial advisors have a succession plan in place. Planning for the future is important, whether you’re just starting or near retirement.
Yes, financial advisors can help you understand annuities and explore other options to find what works best for you.
If you are a business owner, risk management helps protect your business by preparing for potential losses and safeguarding financial health.
Bottom Line
The financial advisor industry faces a significant shift, with the number of advisors expected to decline by 0.2% annually. Currently, 61% of advisors are over 40 years old, and 38% are set to retire within the next decade, managing 42% of the industry’s total assets. To meet future demand, the industry will need between 320,000 and 370,000 advisors by 2034.
While younger talent is entering the profession, 68% of those taking the CFP exam in 2024 were under 40. This new wave may not fill the gap left by retiring advisors. The industry’s future will be shaped by a growing reliance on technology, especially as younger investors prefer tech-driven solutions.
At the same time, older clients, particularly those nearing or in retirement, value long-term relationships with advisors who can guide them through complex financial decisions. Balancing these generational preferences will be key to the evolving financial advisory landscape.
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