Wealth management firms are at the threshold of a growing talent shortage as nearly half of US financial advisors approach retirement, according to the latest J.D. Power US Financial Advisor Satisfaction Study released Wednesday.
The report highlights a significant demographic shift, with more than one-fourth of current advisors already aged 65 or older, even as demand for professional guidance among self-directed investors continues to rise.
The study, based on responses from 3,698 employee and independent advisors collected between December 2024 and April 2025, points to strategic investments in artificial intelligence, social media, and brand-building as essential for attracting and retaining younger advisors and career switchers.
“The wealth management industry is experiencing a significant generational shift in which the demographics, ways of working and priorities of both clients and advisors are changing rapidly,” Mike Foy, managing director of the wealth management practice at J.D. Power, said Wednesday. “How firms manage this transformation and the investments they make today in technology and branding will be critical to attracting, developing and retaining the next generation of advisors.”
Artificial intelligence has emerged as the top technology priority, with 35 percent of advisors identifying it as the area where their firms should increase investment. Early-career advisors, in particular, see opportunities for AI to enhance lead generation and personalized client marketing – areas where they believe there is currently insufficient investment. On a related note, the study also found that satisfaction and brand advocacy scores are higher among advisors who use AI tools.
Social media support also remains a sticking point. While 45 percent of early-career advisors consider social media a top marketing priority, only about one-third rate their firm’s support in this area as “very valuable.” Younger advisors were also more focused on building advisor websites and search engine optimization as a way to broaden their reach, compared to older advisors who tended to slant towards webinars and in-person events.
Brand image is another area where younger advisors see room for improvement. Only one-fifth of advisors under 40 described their firm as conscious of its public brand image, compared to just over one-third of those aged 40 to 64. The report suggests that a strong, relevant brand is especially important for advisors who are still building their client base and cannot yet rely on referrals.
The survey also cast fresh light on the top firms for advisor satisfaction. Among employee advisors, Stifel achieved the highest overall satisfaction for the third year in a row, with a score of 819 out of 1,000. Edward Jones and Raymond James & Associates followed, scoring 729 and 722, respectively.
For independent advisors, Commonwealth – which is soon to be acquired by its acquisitive rival, LPL – led the rankings for the twelfth consecutive year, earning a score of 834, while Raymond James Financial Services and Cambridge rounded out the top three.
By listening for what truly matters and where clients want to make a difference, advisors can avoid politics and help build more personal strategies.
JPMorgan and RBC have also welcomed ex-UBS advisors in Texas, while Steward Partners and SpirePoint make new additions in the Sun Belt.
Counsel representing Lisa Cook argued the president's pattern of publicly blasting the Fed calls the foundation for her firing into question.
The two firms violated the Advisers Act and Reg BI by making misleading statements and failing to disclose conflicts to retail and retirement plan investors, according to the regulator.
Elsewhere, two breakaway teams from Morgan Stanley and Merrill unite to form a $2 billion RIA, while a Texas-based independent merges with a Bay Area advisory practice.
Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.
Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.
