The wealth management industry needs to make substantial changes to confront a talent crisis, as a growing number of investors are looking for guidance to navigate today’s complex markets.
According to J.D. Power’s 2025 U.S. Financial Advisor Satisfaction Study, 46% of financial advisors expect to retire within 10 years. And more than a quarter of current advisors, 26%, have already passed their 65th birthday.
For its annual study, J.D. Power surveyed nearly 3,700 employee and independent advisors to measure satisfaction with wealth management firms across six key areas:
- Compensation
- Firm leadership and culture
- Operational support
- Products and marketing
- Professional development
- Technology
Here are the top-rated wealth management firms for overall satisfaction among employee advisors:
- Stifel (819 out of 1,000 points; No. 1 for third consecutive year)
- Edward Jones (729)
- Raymond James & Associates (722)
Following are the top-rated firms among independent advisors:
- Commonwealth (834; No. 1 for the 12th consecutive year)
- Raymond James Financial Services (741)
- Cambridge (686)
A generational and technological shift
The financial advisor industry faces a talent pipeline problem that has been years in the making, partly due to generational differences. Early-career advisors report significant gaps between their needs and their firms’ offerings, according to the study:
- Technology investments: While 35% of all advisors say AI should be their firm’s top tech priority, younger advisors specifically want AI-powered lead generation and personalized client marketing capabilities.
- Brand awareness: Only 20% of advisors under 40 believe their firms are conscious of public image, compared to 35% of advisors aged 40-64.
- Social media support: Nearly half (45%) of early-career advisors consider social media marketing essential for business development, yet just 32% rate their firm’s current support as “very valuable.”
Mike Foy, managing director of the wealth management practice at J.D. Power, says:
“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. 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.”
What this means for your money
If your advisor is approaching retirement age, start asking questions now. Find out about their succession planning, request meetings with potential replacement advisors, and understand exactly how your accounts would transfer if needed.
For those seeking new advisors, this generational shift might actually be a benefit. Younger advisors often embrace digital communication tools, understand modern investment products, and may be more comfortable discussing alternative strategies beyond traditional stocks and bonds.
The wealth management industry stands at a critical juncture. Firms investing in technology and younger talent will likely thrive as demand for financial advice grows. Those that don’t will likely be left behind.
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