Edward Jones Finds 58% of Advisors Lack Formal Succession Plans Despite Retirement Pressures — Edward D. Jones & Co., L.P.

Event summary

59% of senior financial advisors expect to transition their practice within 5 years, but only 42% have a formal succession plan.
71% of advisors cite complexity as a reason for delaying succession planning.
61% of senior advisors find emotionally difficult to trust someone enough to hand over their practice.
86% of junior advisors are interested in acquiring practices, but only 38% of retiring advisors have a specific successor in mind.

The big picture

The financial advisory industry faces a significant succession gap as a wave of advisors approach retirement. With Cerulli projecting over 35% of advisors to retire in the next decade, the lack of formal succession plans poses risks to client continuity and firm stability. Edward Jones' research highlights the need for firms to provide both practical and emotional support to facilitate smooth transitions, as the human element of trust and relationship-building remains a critical barrier.

What we're watching

Execution Risk: Whether Edward Jones' structured approach to succession planning can bridge the gap between retiring and junior advisors.
Industry Dynamics: How the pace of advisor retirements will impact client continuity and firm stability across the financial advisory sector.
Competitive Positioning: How firms like Edward Jones will differentiate themselves by offering robust succession planning support to attract and retain advisors.