Advisors affiliated with national firms are likely to be in demand from those whose retirement is just around the corner.
Research from Cerulli Associates reveals that those within five years of retirement become "advisor-reliant" and seek those professionals who can offer a strong suite of support services, becoming heavily reliant on these advisors. These households’ share of the advisor-reliant market rises from 27% to 46% in the "five years to retirement" period.
When they are within a year of retirement, two key trends are apparent. First, their share of the advisor-reliant market rises to 57%. Secondly, they prefer to work with an advisor affiliated with a national firm (45%) compared to previously (39%), while the no-preference share drops to 20% from 30%.
The mix of advice required also shifts, with 39% of investors preferring a dedicated home-office team for portfolio management and 29% favoring an individual advisor.
Cerulli’s recommendation is for individual client-facing advisors to manage the day-to-day engagement with the investor, while a dedicated team of investment professionals look after implementation.
The financial services advisory firm says it’s important for firms hoping to increase their market share to highlight the support services they have at their disposal and how they prioritize clients’ best interests.
“While most investors have little familiarity with the term ‘fiduciary,’ this type of relationship is the core of client preference,” Scott Smith, director at Cerulli, said in a statement. “Communicating this commitment believably in terms that clients understand is vital to ongoing client acquisition, especially as prospects approach their anticipated retirement date.”
[Read more: How to prepare your retirement needs]
From outstanding individuals to innovative organizations, find out who made the final shortlist for top honors at the IN awards, now in its second year.
Cresset's Susie Cranston is expecting an economic recession, but says her $65 billion RIA sees "great opportunity" to keep investing in a down market.
“There’s a big pull to alternative investments right now because of volatility of the stock market,” Kevin Gannon, CEO of Robert A. Stanger & Co., said.
Sellers shift focus: It's not about succession anymore.
Platform being adopted by independent-minded advisors who see insurance as a core pillar of their business.
RIAs face rising regulatory pressure in 2025. Forward-looking firms are responding with embedded technology, not more paperwork.
As inheritances are set to reshape client portfolios and next-gen heirs demand digital-first experiences, firms are retooling their wealth tech stacks and succession models in real time.
