A broad and sustained repricing cycle is underway across all business models in the financial planning industry.
Planners' average annual retainer fee rose to $6,815 this year from $4,484 in 2023, a 52% increase, according to a study Envestnet released Monday.
"The findings from this year's study reflect something we see every day at Envestnet MoneyGuide — advisors are investing more deeply in planning relationships and pricing them accordingly," Matt Wilson, the firm's head of business strategy, said in a statement.
"As AI reshapes how clients access financial information, the advisors who thrive will be those who deliver value that goes beyond what technology can replicate."
The online study was conducted in the first quarter of 2026 among 491 qualified advisors. Among the respondents, 291 came from Envestnet MoneyGuide's advisor outreach, and 200 through Datos Insights outreach, intended to ensure representation from non-RIA distribution channels. The sample spanned all major business models, firm sizes, client demographics and experience levels.
Fees Surge; AI Lurks
Flat fees have risen by 15% since 2023, the survey found, from $2,554 to $2,926, while subscription fees have shot up from $215 to $595 per month. Only the assets under management bundled fee model has shown compression, declining from 1.05% to 0.96%.
The business model divide between RIAs and non-RIAs is widening. RIAs in the study are charging more in absolute terms, charging more clients and raising prices more aggressively than their non-RIA peers.
The RIA retainer fee premium is 44% — $7,550 on average, compared with non-RIAs' $5,237. RIAs also charge all clients for planning at a rate of 59%, versus 39% for non-RIAs. Datos Insights projects that these gaps will widen further.
Custodian-based fee collection has become nearly ubiquitous, according to the study. In 2020, 27% of advisors collected fees through custodian deduction, rising to 54% in 2023. Today, that share is 79%.
Envestnet MoneyGuide noted that this decade-long shift among RIAs is now being replicated by non-RIAs.
Today, concern about artificial intelligence and machine learning is top-of-mind across all advisor business models and experience levels, cited by 69% of respondents. In 2023, only 29% expressed this concern.
"Between fee increases and concern over AI, advisors recognize that they must articulate and deliver value that technology cannot replicate," Wally Okby, strategic advisor for Datos Insights' wealth management practice, said in the statement.
"Our research provides advisors with a defensible reference point for pricing conversations with clients, and with industry context for guiding advisor compensation and service models."
Millennials in the Vanguard
Only 32% of respondents in the new study reported that they were actively engaging clients' children in 2023. This year, that share has increased to 55%.
With an enormous intergenerational wealth transfer underway, Envestnet MoneyGuide said, advisors who have not pursued relationships with clients' children and grandchildren are putting their practices at risk.
Younger advisors and their more youthful clients are set to reshape fee models in the coming decade, according to the study.
The share of advisors with substantial millennial client bases has increased from 12% to 23% since 2023. Younger advisors lead in millennial client adoption, with 34% of advisors who have 10 or fewer years of experience reporting substantial millennial clientele.
Credit: Shutterstock
© Touchpoint Markets, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.