A new study by Cerulli Associates is confirming the troublesome trend that fewer young folks are choosing to be financial advisors, and the industry is increasingly relying on a shrinking talent pool. In 2007, just 3% of the advisor force was under the age of 30, according to Cerulli research.
The most recent edition of The Cerulli’s Edge–Advisor Edition reports that while much has changed in the financial industry, recruiting has been slow to catch up. Cerulli says if the industry wants to attract and retain new talent, it needs to focus on programs that steer new advisors onto existing teams.
Undergraduate financial planning programs, Cerulli says, are producing a fresh batch of new talent. “Firms that hire graduates from these programs find that attracting these qualified, motivated, young advisors has become a differentiator for them,” Cerulli says. The Boston-based consulting firm estimates that there are fewer than 100 of these undergraduate programs, and says these programs help students develop technical knowledge and counseling skills through courses on retirement planning, risk management, estate planning, tax law, and exposure to the latest planning technology.