An age crisis is brewing in the financial advice market.
No it’s not that people are leaving it too late to start planning their finances for a comfortable later life, although it is vital they start their journey early.
It’s the shocking revelation that the average age of an independent adviser (IFA) is 58 in the UK. And more worrying is that one in five plan to retire from the industry in the next five years.
Further data from FT Adviser via a Freedom of Information to the Financial Conduct Authority shows there were 174 authorised advisers under the age of 25 in February this year, a 60% drop from the 426 in August 2022. While the number of advisers aged over 60 has increased from 4,824 to 6,210.
The biggest number of advisers are in the age group between 50 and 59, at 9,777.
I’m not being ageist here.
Experience
All of those years of experience are vital to the industry. However, it is also essential we bring in some younger talent to ensure the market can continue to meet the needs of everyone.
The industry requires a huge injection of fresh, younger advisers that can help shake it up and take the market forward. And that needs to happen fast.
We need to promote the industry as one to build and grow a successful career or business.
Thriving
But it is important that younger advisers tap into the wealth of expertise and experience the industry has – before it disappears.
Working alongside and learning from this vast pool of experience, while bringing a fresh, innovative approach with all the latest technical skills and new products, is key to creating a thriving and effective market that can serve everyone well.