Almost half (49%) of UK financial planners and advisers shared that they plan to retire within the next five years, according to a survey.
The study by Investec Wealth & Investment (UK), part of Rathbones Group PLC, has revealed the retirement plans of independent financial advisers (IFAs) and financial planners, shedding light on the future of the assets they manage.
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The study, conducted among 100 financial advisers and planners across the UK, found that 37% are considering retirement within the next four years, with 22% planning to retire in the next three years. The average retirement age is 52, although 35% intend to retire before they turn 50, and only 6% plan to wait until they are 60 or older.
The research highlights a concern: a large proportion of assets managed by retiring advisers could move to different wealth management firms. On average, the advisers surveyed manage around £34 million in assets, with more than one in ten managing between £50 million and £100 million. However, 51% estimate their firm will retain only up to 50% of the clients’ assets they currently manage, while just under half believe their firm will keep between 50% and 75%. Only about 1% expect their firm to retain between 75% and 100%.
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Several factors are driving these retirement plans. Over a third (38%) cited personal reasons, while 37% pointed to dissatisfaction with new working conditions following company mergers or acquisitions. The study also found that 34% feel the job has become too “stressful”, 32% cite excessive regulation and red tape, and 29% mention health reasons. Additionally, 12% said they are overwhelmed by the constant distractions from social media and stock market alerts.
Simon Taylor, head of strategic partnerships at Investec Wealth & Investment (UK), emphasised the importance of having the right tools and services for IFAs and planners. “Having the right products and services at their fingertips means that IFAs and financial planners can build stronger client relationships, win new clients, reduce administrative burdens, and focus on the aspects of the profession that matter.”
