The wealth management industry is entering a defining period as trillions of dollars begin shifting between generations, putting pressure on advisors to retain assets and rethink how they engage clients.
With more than $84 trillion expected to be passed down over the next two decades, the scale of disruption ahead is forcing advisors to confront changing client expectations around relationships, investment strategies, and technology, according to a new report from Natixis Investment Managers.
“The great wealth transfer isn’t a distant event. It’s happening now, and it’s reshaping the advisor-client relationship in real time,” said Dave Goodsell, Executive Director of the Natixis Center for Investor Insight. “As trillions of dollars move across generations, success will depend less on legacy ties and more on forming meaningful connections with the next generation of investors. Advisors who fail to engage spouses and heirs early risk losing assets, while those who connect and adapt to evolving investor expectations have a significant opportunity to strengthen relationships and grow their practice.”
The demographic shift is accelerating as the first wave of the world’s 1.1 billion baby boomers reaches age 80, marking the beginning of what is widely considered the largest intergenerational wealth transfer in history.
For advisors, the implications are significant. Globally, 46% say the transfer represents an existential risk to their business, while in the US, 41% share that concern and 22% report they have already lost substantial assets due to generational turnover.
At the same time, client intentions suggest further erosion ahead. Nearly half (47%) of US investors expecting to inherit wealth say they do not plan to retain their benefactor’s advisor.
While advisors report keeping assets in about 72% of cases when a spouse inherits, success drops to roughly 50% when wealth passes to children or other heirs.
Investor responses indicate an even steeper challenge. Only 45% globally say they intend to keep inherited assets with the same advisor, and 55% of heirs expect to move on.
In the US, the divide is similarly stark. Although 53% of investors say they plan to stay, a significant portion cite relationship factors rather than performance as the deciding issue.
Trust and familiarity lead the reasons for staying, with 32% pointing to an existing relationship and 23% to strong investment management. Conversely, 37% of those planning to leave already have their own advisor, and 25% say they lack a personal connection.
Notably, very few clients leave due to poor performance. Only 6% of US investors say they would switch because the advisor failed to manage assets well.
The report highlights that differences between generations (not just asset size) will define the future of advisory relationships.
Baby boomers, long the foundation of advisory businesses, are the most likely to move assets, with 66% indicating they have already switched or intend to do so. Meanwhile, younger investors show more willingness to stay, with 57% of Gen X and 60% of millennials planning to retain their benefactor’s advisor.
However, younger clients bring very different expectations. Millennials, in particular, are more inclined toward private assets, cryptocurrencies, sustainable investing, and active ETFs, requiring advisors to expand beyond traditional portfolio strategies.
They are also more engaged in the investment process, with 68% preferring either a collaborative relationship with their advisor or full control over decisions.
While nearly half of US millennials say they are more likely to use automated advice as AI advances, and 41% say they trust algorithms in investment decision-making, human advisors remain central. Across generations, investors continue to place their highest trust in their own financial advisor over digital tools or external sources.
The findings suggest that advisors who fail to evolve risk losing relevance and assets.
Firms that succeed will be those that extend relationships beyond the primary client, engage heirs earlier, and tailor services to reflect generational and gender-based differences in risk tolerance and financial priorities.
Relationship-building is already emerging as the most effective defense. More than nine in ten US advisors say developing long-term connections across families is key to retaining assets during the transition.
With trillions in motion, the industry’s next phase will be shaped less by legacy ties and more by how effectively advisors adapt to a new generation of investors.
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