US report finds adviser retirement risk

According to the report, 43 per cent of US advisers are “either at or approaching retirement”, with fund managers and custodians at risk as advisers make their exit from the industry.

The average age of an American financial adviser was found to be 50.0, with 43 per cent over the age of 55 and nearly one-third in the 55 to 64 age bracket.

Cerulli Associates spokesperson Kenton Shirk said the financial advice industry is suffering from a shortfall between younger and older advice professionals.

“Broker/dealers continue to struggle to recruit new young advisers into the industry to offset those advisers who are nearing retirement,” Mr Shirk said, according to the US-based publication Credit Union Times.

Product providers and other stakeholders need to provide support and training on succession planning issues to financial advice firms, Mr Shirk suggested.