Financial Planning Fees Surge 52% as Industry Shifts to Planning-Led Advice
Event summary
- Average annual retainer fees for financial planning rose 52% from 2023 to 2026, reaching $6,815.
- 53% of advisors raised fees in the past year, reflecting a broad repricing cycle across all business models.
- RIAs charge 44% more in retainer fees than non-RIAs, with 59% of RIA clients paying for planning services.
- 79% of advisors now collect fees through custodian deduction, up from 27% in 2020.
- 69% of advisors cite AI and machine learning as a top concern, up from 29% in 2023.
The big picture
The financial planning industry is undergoing a structural shift toward planning-led advice, driven by fee inflation and the need to differentiate from AI. RIAs are leading this transition, charging higher fees and engaging more clients in comprehensive planning services. The largest intergenerational wealth transfer and the rise of millennial clients are further accelerating this trend, forcing advisors to adapt their business models to remain competitive.
What we're watching
- Fee Model Evolution
- How the rapid adoption of subscription and flat-fee models will impact advisor profitability and client acquisition.
- AI Disruption
- Whether advisors can sustain fee increases while differentiating their value proposition against AI-driven financial tools.
- Generational Shift
- The pace at which millennial client adoption will reshape fee structures and service offerings in wealth management.
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