The large-scale transfer of wealth from baby boomers to younger generations is reshaping the financial advisory sector. As trillions of dollars begin to change hands, more young inheritors are choosing not to continue relationships with their parents’ long-standing advisers. Firms are working to retain these clients, though many face hurdles caused by a lack of connection, outdated service approaches and insufficient generational trust.
For years, financial services have focused heavily on older Americans, especially baby boomers, who control more than US$83 trillion in assets. As many begin transferring their wealth over the next two decades, a significant gap is forming. Research shows that between 70% and 81% of young high-net-worth individuals plan to change advisers within two years of receiving their inheritance. This shift threatens the traditional adviser-client model.
The underlying issue is clear. Most wealth advisers formed relationships solely with the older generation. Many heirs feel disconnected from these advisers and unsure about their financial futures. As a result, they seek firms that better reflect their personal values, communication preferences and long-term goals. The problem is made worse by the fact that many firms have done little to include entire families in planning because younger clients typically bring in smaller amounts of revenue at first.
Further complicating the situation is the ageing adviser workforce. As many as 38% of current advisers are expected to retire within the next ten years. The generational mismatch is driving young heirs to look for advisers who understand modern tools, shifting social norms and the demand for digital services. Older advisers often struggle to meet these expectations.
To stay relevant, wealth management firms are trying new approaches. Some are rolling out digital platforms, organising educational sessions and hosting events to attract young adults. Others are testing community-building initiatives such as book clubs to foster trust outside formal meetings. Firms are also bringing in younger and more diverse advisers who can better connect with millennial and Gen Z clients.
Despite these efforts, the path forward remains uncertain. Digital upgrades and fresh talent may help, though keeping the new generation of clients will likely depend on broader cultural changes. This includes a commitment to inclusion, forward-focused planning and building meaningful relationships with all family members.
