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Ageing client banks mean advice firms need 15% new revenue just to stand still

ended 28. October 2025

The NextWealth Financial Advice Business Benchmarks Report 2025 has revealed that the ageing profile of financial advice clients is creating a major sustainability challenge for firms.

According to the report, over one-third (34%) of clients are aged 65 or older, with 9% aged over 75. One advice firm interviewed by NextWealth estimated it needs around 15% net new revenue each year simply to stand still, a figure the researchers say echoes across the sector.

The report warns that this demographic shift—driven by the retirement and eventual loss of long-standing clients—means many advice firms will have to focus on attracting younger generations, engaging clients’ families, and developing propositions for beneficiaries and inheritors if they are to maintain growth.

The findings are part of a wider industry trend showing firms moving from M&A-led expansion to organic growth through data, client segmentation and intergenerational engagement.

Source: NextWealth Financial Advice Business Benchmarks Report 2025 (October 2025).

NextWealth’s data suggests the financial advice profession faces a demographic time bomb.

  • Are firms aware of this issue?
  • How are advice firms preparing for this shift?
  • What strategies are working to engage younger or next-generation clients?
  • Is “generational wealth planning” becoming the new normal?

Comments welcome from financial advisers, planners and wealth managers.

 

1 responses from the Newspage community

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Scott GallacherVerified
Director at Rowley Turton
This report highlights a challenge I first identified within our own business last year. We’d anticipated a virtuous circle of real-terms growth — investment portfolios rising faster than inflation, new clients joining, and costs held steady — leading to exponential profit growth. That hasn’t quite materialised, and we’ve had to update our business plan to take account of that.

As clients age, they start spending at least some of their pot, buying annuities (especially with higher rates), and, sadly, passing away. For advice firms that want to grow — and to support tomorrow’s talent — relying on an ageing client base isn’t enough. Firms must think about tomorrow’s clients as well as generational planning.