J.D. Power’s annual financial advisor survey adds to the drumbeat of analysts predicting a “talent crisis” coming for the wealth management sector.
The consumer insights, data, and analytics firm’s 2025 financial advisor satisfaction study polled 3,698 employees and independent financial advisors. Of that group, 46% plan to retire within the next 10 years. In addition, in an affirmation that many advisors work past the typical retirement age, another 26% of current advisors are already 65 or older.
“The wealth management industry is experiencing a significant generational shift in which the demographics, ways of working and priorities of both clients and advisors are changing rapidly,” Mike Foy, managing director of the wealth management practice at J.D. Power, said in a statement.
The research adds to a report from McKinsey earlier this year predicting an advisor shortage of 100,000 by 2034. In the meantime, thought leaders in the space are calling for advisors to lean into succession planning no matter how close they are to retirement, with a recent study commissioned by Kestra Financial and its RIA Bluespring finding that 94% of RIA owners nearing retirement do not have a “fully documented” plan.
J.D. Power’s survey found that 44% of advisors do not have a formal succession plan. Perhaps even more troubling, 30% of advisors who plan to retire within five years do not have a formal succession plan.
The insights firm does not have details on what those with plans want to do, whether to sell their book of business or transfer it to other advisors.
J.D. Power’s Foy advocates for advisory firms to use a combination of technology and brand building to attract clients and young advisors to the industry.
According to its study, only 20% of advisors under the age of 40 felt their firm was “conscious of its public brand image.” The Troy, Mich.-based insights firm said brand recognition is particularly important for younger advisors seeking to build a client base.
Related to this, J.D. Power found that younger advisors want more social media work and support from their firms. But only 32% of advisors under 40 said their firms are valuing social media outreach.
“Technology and branding will be critical to attracting, developing and retaining the next generation of advisors, and they will also set the stage for how their firms are perceived by the influx of new, younger clients now considering professional advice for the first time,” Foy said.
J.D. Power also noted, however, that if used correctly, artificial intelligence may help mitigate some of the talent crisis. The technology could advance lead generation and the fast, efficient personalization of client marketing, which would be particularly useful to junior advisors.
About 35% of those surveyed said AI is the top technology they should invest in.
Financial Advisor Satisfaction
J.D. Power also surveyed advisors at employee and independent firms to gauge their satisfaction with categories such as compensation, firm leadership and culture, operational support, products and marketing, professional development and technology.
Commonwealth once again snagged the top spot among independent advisors, scoring 834 out of 1,000.
It’s the 12th consecutive No. 1 ranking for Commonwealth in the survey.
LPL Financial is in the process of fully acquiring Commonwealth, but has said the broker/dealer would be keeping its brand after the transition. That could mean Commonwealth can keep competing as a standalone entity; however, J.D. Power said that decision will depend on how LPL positions the brand.
Among independent advisors, the next most highly ranked firms were Raymond James (741), Cambridge Investment Research (686), Ameriprise (667) and Osaic (662).
The top four remained the same from last year’s study, while Osaic jumped ahead of LPL, which landed at No. 7 behind Cetera.
The top firm among employee advisors was Stifel Financial, with a score of 819. This is the second year in a row Stifel has taken the top spot.
It was followed by Edward Jones (729), Raymond James (722), RBC Wealth Management (695) and Morgan Stanley (605).
Edward Jones jumped from No. 3 last year, while Raymond James dropped. Morgan Stanley climbed from sixth place last year, outpacing Merrill and Wells Fargo.
J.D. Power surveyed 2,246 employee advisors and 1,424 independent advisors from December 2024 through April 2025.
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