Do Advisors Need to Retire Anymore?
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More than half of advisors don’t have a continuity plan in place for their practices.
Not having a succession plan is a risk to you, your family, your employees and certainly your clients. As professionals, we have a duty to provide continuity should something happen to us – even more so if we are fiduciaries. But advisors do not need to go gentle into that good night. Our profession is a big part of our identity, so it’s easy to avoid thinking about retirement and what comes next.
When the pandemic struck, it quickly became apparent how dangerous the virus was to those over the age of 60. The need for continuity planning came into relief, although many financial advisors didn’t have the time to dwell on themselves. Clients were calling and portfolios needed to be managed.
One might have expected that after this experience, chastened, older advisors would have identified a succession partner. Yet what happened is something surprising and entirely different – advisors are realizing that they don’t need to retire as soon as they expected.
The average age of financial advisors is approximately 56 years old. Most advisors expect to retire around age 65. Yet with healthy life expectancies lengthening for advisors and their clients, the urgency to find something else to do has been diminishing.