Exclusive: One In Three Senior IFAs Plan To Retire Over Next Ten Years

by | Oct 8, 2015

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IFA Magazine Exclusive

New research reveals that 36% of intermediaries that own all, or part of their firm, plan to semi-retire, or retire fully in the next decade.

The findings come from Investec Wealth & Investment which concludes that despite the numbers retiring, a dramatic departure of senior industry advisers is unlikely. This is because, says the comprehensive study, around (80%) of advisers are expecting to semi-retire, or take a phased approach to retirement before stopping work for good.

But, adds the report, retirement plans will lead to a significant number of business ownership changes with almost half (49%) of advisers planning to sell their firm entirely on retirement. Some 30% plan to recruit a successor from outside the business.


Interestingly, only a fifth (21%) of advisers believe their successor will come from the existing team and just 12% expect family members to take over the business.

On a wry note, the report says that 62% of IFAs admit they are better at discussing retirement planning with their clients than they are in executing plans for themselves!

Head of Intermediary Services at Investec Wealth & Investment Mark Stevens said (pictured above): “The survey provides a useful snapshot on succession planning among IFAs. It’s clear that advisers consider all options very carefully with continuity of client service at the core. As most advisers plan to look outside their firm for a new owner when they decide to call it a day, the research suggests the right fit is vital and retirement will continue to be a key driver towards further consolidation in the sector.


“While IFAs have to be experts in retirement planning, it doesn’t follow that they will have all the answers to their own situation.  That just 12% of advisers have fully agreed a succession plan underlines how complicated the process can be and in many instances the outcome only becomes clear when full retirement beckons.”

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