Survey Highlights Advisors' Urgent Need To Retain NextGen Business

Editorial Staff

23 December 2023

Only one in five affluent investors in the US use the same advisors as their parents, underscoring how the wealth industry faces a scramble to retain NextGen business amid multi-trillion dollar financial transfers, according to a report by Cerulli Associates.

The Boston-headquartered research and analytics firm said that more than 90 per cent of affluent investors who use their own advisor did not consider their parents’ advisor in their selection process, and just 6 per cent gave their parents’ advisor even the slightest consideration.

At a time when the average age of wealth advisors has been rising, coupled with the Baby Boom generation passing on wealth to younger adults, the dangers to advisors of losing a share of that wealth are obvious. Hence why so many seek to retain relationships with family members.

“While they may begin as a sort of ‘marriage of convenience,’ advisors can create long-lasting relationships with their clients’ children,” research analyst John McKenna said. “Advisors whose clients have financially interested children should work with them – either helping them with their own financial plans or directing someone else within the firm whose life experiences align with these clients to join the advising team,” he adds.