RIA firms have maintained remarkably steady client retention rates in recent years. Charles Schwab’s 2025 Study shows retention holding at 97% across the past decade. This stability stands out amid strong industry growth, with median AUM rising 16.6% and client numbers increasing 4.8% in 2024.
Yet as competition intensifies and client expectations evolve, many RIAs recognize that high retention can no longer be taken for granted. Firms that treat retention as a deliberate operational priority gain an edge in organic growth and profitability.
What Is Putting RIA Client Retention Under Pressure?
High retention has supported RIA expansion, but underlying pressures are building. Next-generation clients and those in the midst of wealth transfer demand more than investment performance.
Surveys indicate that 70% of clients want integrated estate planning, while many younger investors say they would switch advisors to gain holistic services. Poor technology and infrequent or impersonal communication also drive attrition risk, with 85% of high-value clients noting that better personalization would strengthen their confidence and loyalty.
How Can RIAs Use Communication to Improve Retention?
Regular, relevant communication remains one of the strongest drivers of client retention for RIAs. Quarterly reviews still matter, but they are no longer enough on their own. Clients increasingly expect timely context around markets, portfolio decisions, tax considerations, and broader planning issues that affect their financial lives.
Many firms are responding by tailoring communication around client complexity and life stage. Retention also depends on extending the relationship beyond the primary decision-maker. During wealth transfer, assets are more likely to stay with the firm when adult children, spouses, and other key family members already know the advisor and understand the planning process.
Why Do RIAs Need to Expand Beyond Portfolio Management?
Clients increasingly expect more from an advisor than portfolio management alone. A 2025 survey found that 70% of clients want estate planning included in a broader financial planning relationship, and 40% would consider switching advisors to get it. The appetite is even stronger among younger investors, with 63% of Gen Z and 54% of Millennials saying they would be open to switching for that support.
Recent benchmarking shows that only about 54–55% of firms offer estate planning or tax planning directly. A deeper planning relationship also makes the client relationship more durable during major life events and wealth transfers.
How Does Technology Improve the RIA Client Experience?
Technology is now part of how clients judge the quality of advice. 92% of clients say they would switch firms because of poor technology, and 44% say they already have. That puts the digital experience close to trust, responsiveness, and service quality in the client’s decision-making process.
RIA adoption is moving in the same direction. Schwab’s 2026 AI study found that AI use has more than doubled since 2023, reaching 63% of firms. Firms that modernize with discipline free up more advisor time for relationship work.
That same logic applies to areas that many RIAs have historically overlooked. For example, securities class action settlements reached about $8 billion in 2025, with median values at multi-year highs.
Yet for a long time, managing these recoveries required manual work, which made it easier for RIAs to overlook the area. That logic is changing for two reasons: retention and reputation now carry more weight for RIAs, and platforms such as 11th.com can automate the entire recovery workflow. As a result, securities class action recovery is expected to become one of the strongest client-retention tools for RIAs in the coming years.
FAQ
How can RIAs improve client retention in 2026?
RIAs can improve retention through regular communication, broader planning services, better digital experiences, and stronger operational follow-through.
Why is client retention important for RIAs?
High retention supports organic growth because existing clients can bring additional assets, referrals, and stronger long-term revenue stability.
What do clients expect from RIAs today?
Clients increasingly expect holistic planning, estate planning, digital access, clear communication, and more personalized advice.
How does technology affect RIA client retention?
Technology affects how clients judge service quality. Better systems can improve reporting, access, responsiveness, and advisor capacity.
What overlooked retention opportunities should RIAs watch?
RIAs should watch areas like settlement recovery, where technology can help return missed value to client accounts.
