As more veteran financial advisors prepare to retire and younger investors increasingly begin seeking professional guidance, many wealth management firms are entering a period of supply-demand imbalance. The number of experienced advisors is declining just as demand for advice is rising. According to the newly released JD Power 2025 U.S. Financial Advisor Satisfaction Study, firms that want to remain competitive need to act now to address advisor recruitment, productivity and retention.
“Roughly 26 percent of advisors today are over the age of 65, and 20 percent say they plan to retire within five years,” said Mike Foy, Managing Director of Wealth Intelligence at JD Power. “At the same time, we’re seeing a shift in investor behavior. Many younger, self-directed investors are beginning to seek out professional advice.”
This creates a critical moment for firms to rethink how they attract, support and retain advisor talent.
Retaining Advisors Starts with Leadership
The study found that advisor satisfaction is strongly influenced by leadership behavior and culture. Foy identified three attributes that matter most to advisors: strategic direction, accountability, and transparency.
“Advisors want to know the firm has a clear and smart strategy that prioritizes both the client and the advisor,” said Foy. “They also expect leaders to create an environment where performance is recognized and rewarded appropriately. And they want honest, timely communication.”
Retention is not just about compensation. It is about building confidence and connection between advisors and the firm’s long-term vision.
Autonomy Is a Competitive Advantage
Top-performing firms in both the employee and independent channels share a common trait: they empower advisors to build their business with flexibility.
“Whether advisors are W-2 or independent, they want to feel trusted to manage their client relationships and operate their practice in a way that works for them,” said Foy. “Even firms with more structured employment models, like Stifel, Edward Jones, and Raymond James, are successful because they offer autonomy within that structure.”
Creating an entrepreneurial culture—one that values advisor input and respects how they work—is essential to attracting and keeping top talent.
Technology Must Be Strategic, Not Overwhelming
Technology continues to play a significant role in shaping the advisor’s experience, but many firms are struggling to strike the right balance.
“Advisors are split,” Foy explained. “Some say the technology is behind and needs to move faster. Others feel overwhelmed by constant updates and change. The challenge is to modernize without creating friction.”
The firms that are most successful are those that invest in the right capabilities, roll them out with thoughtful training, and align tools with what advisors actually need to grow their business.
Invest in the Next Generation of Advisors
The industry is not just facing a retirement wave. It is also facing an advice renaissance, especially among younger investors.
To meet this demand, firms must expand their pipelines. That means actively recruiting new advisor talent, offering structured onboarding, and building mentorship programs that help early-career professionals succeed in an evolving client landscape.
Clients today are looking for holistic, goals-based advice delivered with digital ease. Advisors need to be equipped to meet that standard.
What Firms Should Do Now
To stay competitive, firms should focus on three core areas:
- Support succession. Help experienced advisors plan and execute smooth client transitions.
- Strengthen leadership. Build trust and loyalty through communication, strategic clarity, and cultural alignment.
- Simplify the advisor’s experience. Ensure technology, processes, and support systems are enablers, not obstacles.
“This is an inflection point for the industry,” said Foy. “The firms that invest in the advisor experience today will be the ones that lead it tomorrow.”
The full results from the JD Power 2025 U.S. Financial Advisor Satisfaction Study are now available. To explore the rankings and findings, view the press release below.
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