Succession Planning Hurdles: How Do You Stack Up?
The pressure on advisors to prepare for their retirement isn't about to let up, despite an industry-wide uptick in the advisor ranks last year, research firm Cerulli Associates warns.
"While all of this recent growth has provided some positive momentum, the industry is still not in the clear," Kenton Shirk, associate director at Cerulli says in a statement.
Despite a 1.1% increase in advisor headcount in 2014, the industry's ranks will begin shrinking again by 2019, according to a recent Cerulli study.
Worse, Shirk says that the coming decline will be "at an even more pronounced rate than in the recent years."
Advisors, however, aren't remaining idle. As Cerulli's data shows, many are trying to establish succession plans and groom successors.
Click through our slideshow to see how advisors in the different channels are preparing for their practices for this forthcoming retirement wave. - By Ralph Ortega
Shirk credits the increase to a heavier focus on teaming and onboarding rookies into multi-advisor practices. "There is also greater awareness and concern about succession preparedness," he says.