The RIA industry is facing a growing talent and succession challenge. Reports estimates that the U.S. wealth management industry could face a shortfall of 90,000 to 110,000 advisors by 2034. That represents 30–37% of current headcount as retirements outpace new entrants.

The pressure is especially clear among RIAs. Cerulli reports that 37% of RIAs will retire over the next decade, and those advisors control about 41% of industry assets. Yet only 42% of firms have written succession plans. 

With 34% of retiring advisors still uncertain about their plans, developing next-generation advisors has become a business continuity issue, not just a talent priority. For RIAs, the goal is to build advisors who can earn client trust before a transition happens. 

How Can RIAs Build Stronger Mentoring Programs?

Structured mentoring helps next-generation advisors develop faster and stay longer with the firm. Pairing junior advisors with experienced mentors gives them practical guidance on client relationships and investment decisions.

Mentorship also helps transfer firm culture before senior advisors retire. This matters as firms compete for younger talent, especially Gen Z advisors who expect clearer career development and regular feedback. 

Why Is Client Exposure Important for Next-Generation Advisors?

Next-generation advisors need client exposure before they are expected to manage relationships on their own. RIAs can gradually increase their role in meetings and planning conversations so clients become familiar with the broader advisory team.

Early exposure also supports succession planning. If clients only meet younger advisors during a transition, the handoff can feel abrupt. This is especially important as 81% of next-generation high-net-worth individuals plan to switch firms within one to two years of inheriting assets. 

What Planning Skills Should Next-Generation Advisors Develop?

Next-generation advisors need more than portfolio knowledge. Clients increasingly expect advice that connects investments with estate planning and tax decisions.

RIAs can strengthen younger advisors by giving them deeper exposure to planning work across client situations. Specialized planning staff are 37% more common in growing team-based practices, which shows how important planning expertise has become for firm growth. Stronger planning skills help younger advisors become more valuable to clients and more useful inside the firm.

What Overlooked Areas Can Support Advisor Development?

Efficient operations can support advisor development by reducing time spent on manual work. When younger advisors are not buried in administrative tasks, they have more time to build planning skills and client relationships.

Securities class action recovery is one example of a workflow that has historically been difficult to manage manually, despite its potential hidden value: more than $100B in recoveries is projected over the next decade. With roughly 1,000 active cases each year, firms had to identify eligible matters and match them to client holdings manually. Platforms such as 11th.com make this workflow fully automated and scalable, depositing recovered proceeds directly to client accounts. For RIAs, this gives teams a more structured way to handle recoveries that may otherwise be missed. It also helps next-generation advisors see how technology can support client value without adding another manual process.

What Should RIAs Prioritize in 2026?

In 2026, RIAs should treat next-generation advisor development as part of succession planning and client retention. The advisor shortage is increasing pressure on firms, while retirements are creating more urgency around continuity.

The priority should be a development path that combines mentoring with real client exposure. Firms that also provide ownership clarity and stronger planning training will be better positioned to retain talent, protect client relationships, and sustain long-term growth.

FAQ

Why should RIAs develop next-generation advisors?

RIAs need next-generation advisors to support succession planning, retain clients during transitions, and reduce business continuity risk.

How can RIAs build stronger mentoring programs?

RIAs can pair junior advisors with experienced mentors to build client relationship skills and transfer firm knowledge before senior advisors retire.

Why is client exposure important for next-generation advisors?

Client exposure helps younger advisors build trust before succession events, making future relationship transitions smoother.

What planning skills should next-generation advisors develop?

Next-generation advisors should develop planning skills that connect investments with estate planning, tax decisions, and client goals.

What overlooked areas can support advisor development?

Overlooked workflows such as securities class action recovery can reduce manual work and show younger advisors how technology supports client value.