What the Financial Advisor Shortage Means for the Future of Wealth Management
Summary:
The U.S. wealth management industry is bracing for a major talent shortage, with more than one-third of financial advisors expected to retire by 2034. This shift comes as demand for human-centered financial guidance continues to rise—especially among Gen X and Millennial investors. In this blog, ARC CEO Sarah Pais outlines what’s driving the advisor gap, what McKinsey says firms must do to adapt, and how ARC is proactively equipping independent advisors to thrive through it all.
In the next decade, the financial advisory profession will be in the throes of a significant talent shortage. This isn’t speculation - it’s data-backed foresight. According to a comprehensive McKinsey report, more than one-third of today’s financial advisors are expected to retire by 2034, potentially leaving millions of clients underserved. As someone who has weathered decades in this industry, I can say with certainty: this shift is not just coming, it’s already happening.
For those of us paying attention, the signs are clear. Clients’ financial lives are more complex than ever. Wealth is growing, especially among Gen X and Millennials. And amid this complexity, human guidance is not only still valued - it’s in higher demand than ever.
So, the real question isn’t “Will there be a shortage?” It’s: How are you preparing your practice for what’s ahead?
The Rising Demand for Real Advisors
Technology has undeniably streamlined many aspects of financial services. However, there’s one thing it can’t replace: trust.
Clients are craving personal relationships with professionals who understand their goals, family dynamics, and emotional triggers when it comes to money. Financial advice isn’t just transactional, it’s transformational. And demand for that kind of deep, human-centered advisory relationship is growing rapidly.
As more advisors exit the business, either through retirement or burnout, this supply-demand imbalance could become a crisis for firms that haven’t planned accordingly.
So What Can Be Done?
McKinsey lays out several strategies to address the looming shortfall: increase advisor productivity, build better operating models, and foster more effective teaming. At ARC, we’ve been executing these very solutions for years.
Let’s break them down:
- Teaming: Playing to Your Strengths
We believe great advice comes from playing to your strengths—not stretching yourself thin. That’s why we’re happy to pair advisors who may lack a specific product expertise with those who specialize in that area. Whether it’s retirement planning, insurance, estate strategies, or alternatives, our approach ensures that every client benefits from a comprehensive, collaborative advice model. By aligning complementary skill sets, we elevate client outcomes, maximize advisor efficiency, and foster deeper confidence across the board.
2. Practice Management: Succession Isn’t Optional
Succession planning isn’t just good business, it’s good stewardship. ARC requires every affiliated advisor to have an active succession plan. That ensures that your clients, your family, and your legacy are protected no matter what. As a seasoned advisor, you know how critical this is, yet far too many firms still treat it as an afterthought.
3. Business Development Support: Empowering Advisor Growth
While prospecting remains in the advisor’s hands, ARC equips our affiliated advisors with the tools, training, and strategic guidance needed to grow confidently. From marketing resources and lead generation strategies to vetted vendor access, we help advisors sharpen their approach, amplify visibility, and convert more opportunities—without sacrificing independence.
Why This Matters More Than Ever for Independent Advisors
The firms that will survive and thrive in the coming talent drought are those that understand the bigger picture. They’re not just reacting to change; they’re anticipating it. And they’re doing so with the right partner by their side.
That’s where ARC stands out.
As an advisor-founded, advisor-focused RIA, we’ve built a platform that empowers our affiliates with:
- Direct access to decision-makers, including ARC leadership, so your voice is heard, and your needs are prioritized.
- Customizable support services, from marketing to administrative assistance, allowing you to grow your practice your way.
- A true peer community, where collaboration and shared wisdom replaces isolation.
- Fiduciary integrity, woven into everything we do because we’re not just in this business, we believe in this business.
Whether you’re a solo advisor with $50M AUM or a growing multi-advisor firm, ARC gives you the infrastructure, flexibility, and thought partnership you need to succeed - especially as the competition for advisor talent intensifies.
What Will the Next Decade Look Like for You?
The next ten years will separate those who saw the wave coming and prepared, from those who stayed stuck in the status quo.
If you’re ready to fortify your practice, expand your capacity, and serve clients at a higher level—without sacrificing your autonomy—ARC is the partner you’ve been looking for.
Let’s talk about what’s next, together.
Investment advice offered by Advisor Resource Council, a registered investment advisor.
