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Survey Shows Gap Between Advisors' Own Succession Talk, Action

Editorial Staff

27 June 2025

A survey of 269 financial advisors in the US shows that while these professionals often face succession planning issues of their own, only a minority are taking direct action.

Kestra Financial and Bluespring Wealth Partners have issued an inaugural proprietary industry survey, Bridging the Gap: Succession Misalignment Between G1 and G2 Advisors. The research was conducted between October and November 2024.

Many owners who contemplate succession are confident about their plans, but just 6 per cent of those planning to retire within 10 years have a fully-documented succession plan.

The irony is that RIAs and other wealth managers frequently regale the market about the importance of their clients’ succession planning at a time of multi-trillion-dollar wealth transfer, but can fall short themselves.

"Succession planning is often viewed as tomorrow’s challenge, but our data shows that delaying planning has a negative impact on firms today,” John Amore, president of Kestra Financial, said.

The survey, taking views of advisors who are affiliated with a range of independent broker-dealers and RIAs, shows a “significant disconnect” in execution between “G1 advisors,” who are firm owners planning to retire, and “G2 advisors,” who have been identified as successors or potential successors for owners in their current practice. 

The survey also found that many intended successors feel undervalued and unprepared – some even on the verge of walking away. 

G1s want to retire, but over 50 per cent struggle to relinquish control. Additionally, more than four in 10 fear that their clients will not be taken care of as well if they leave.

One in three potential successors said they would consider leaving without a clear succession timeline. The longer G1s wait, the more they risk. 

G2s want tangible incentives, yet fewer than half of G1s nearing retirement have transferred any equity to successors. One in four G2s would consider leaving in the absence of being given equity or a timeline for receiving equity.

Only 35 per cent of G2s feel fully prepared to assume leadership. The top two areas G2s would like to take on more leadership responsibilities are strategic planning and business financials – the very skills they need to step into ownership confidently.