The Next Generation of Financial Planners: Investing in Future Leaders

How mentoring, training, and succession planning are shaping the future of financial planning.

Financial planning is facing a demographic challenge. With an aging advisor workforce and fewer young professionals entering the field, the profession risks a talent shortage that could impact the quality of advice and client relationships. During my conversation with Ryan and Kate, two financial advisers at different stages of their careers, it became clear that the future success of financial planning depends on breaking the age bias, committing to mentorship, and focusing on strategic succession planning. Together, these elements are not just a nice addition to a business model—they are critical to the sustainability of the profession and its ability to serve clients across generations.

Mentorship: A Lifeline for the Next Generation

One takeaway from my discussion with Kate and Ryan was how essential mentorship is in cultivating competent financial planners. Kate's mentorship of Ryan started well before he became a certified planner. It wasn’t just about passing exams or earning credentials; it was about shaping Ryan’s professional mindset, honing his client relationship skills, and guiding him through the often-intimidating duty of business development.

Mentorship in financial planning is critical because it serves as the bridge between theory and practice. Hands-on support is invaluable in teaching young planners how to deal with "fact-find" conversations with clients, anticipate market shifts, and create personalised financial plans. According to Deloitte’s Global Human Capital Trends study, 75% of professionals said that mentorship played a key role in their career success, proving that investment in mentorship directly correlates with success in career progression and firm growth.

Age Bias: Breaking Stereotypes in Financial Planning

Ryan and Kate discussed the pervasive issue of age bias in financial planning. Younger advisers, like Ryan, often face skepticism from older clients who question their ability to offer advice on financial services that are perceived to be for clients in later stages of life, such as retirement, estate planning, or investment strategies. This is a significant barrier that younger financial planners must overcome if they are to thrive in this profession.

The reality is, not only do younger advisers bring fresh perspectives, and are more adaptable to new technologies, but they also tend to be more up-to-date on new regulations and qualifications. By breaking down age biases, the profession can better align with modern client expectations and foster the growth of a dynamic, multi-generational workforce.

Training and Development: A Strategic Investment

Ryan’s journey from trainee to qualified financial planner was a real life example that shows the importance of rigorous, long-term training. Financial planning is not a profession where you can learn everything in a classroom. Intricate client needs, shifting economic landscapes, and regulatory changes require young professionals to receive continuous, real-world education.

Kate’s dedication to Ryan’s development included not just technical training but also opportunities to learn from her real client interactions, building a skill set that extends beyond numbers to the human element of financial advice. The financial planning profession must embrace this approach if we want to ensure sustainability. The more comprehensive the training, the more valuable and loyal the client base becomes.

Business Development: Foundational Skills in Financial Planning

While financial planning careers are often framed around client service and technical expertise, business development (BD) is one of the most essential skills young planners can master. Ryan explained that his success didn’t solely stem from mentorship or exams—it came from learning how to market himself, build relationships, and seek referrals. This often-overlooked aspect of the profession is the backbone of sustainable growth for independent planners and firms.

In fact, many young advisors struggle in their early years due to a lack of business development training. Building rapport, asking for referrals, and networking within the community can be daunting without guidance. Research suggests that many businesses take a passive stance to business development, hoping that new customers will materialise without adjusting their business processes. By making business development a core component of training, firms can ensure their new planners aren't just knowledgeable but capable of growing their practice.

Succession Planning: A Necessity for Long-Term Success

Perhaps the most critical topic for Kate was succession planning—an issue that is frequently delayed until it’s too late. Her decision to invest in Ryan was not just a mentorship initiative; it was a forward-thinking strategy to secure the future of her firm. With an aging workforce (with nearly three quarters of IFAs planning to retire in next decade), succession planning has never been more urgent.

By training Ryan to eventually take over the business, Kate is not only safeguarding her firm's future but also ensuring that her clients have continuity in their financial planning journey. Succession planning is not just about preparing the next generation in the leadership team—it’s about protecting a firm’s legacy, its client relationships, and its long-term viability.

The future of financial planning lies in the hands of the next generation, and it’s our responsibility to invest in their success. From mentorship to business development and succession planning, the strategies we implement today will define the sustainability of the profession tomorrow. The conversation with Ryan and Kate made it clear that we can’t afford to wait any longer. Financial firms must be proactive, not reactive, in developing young talent.

If you want to dive deeper into this insightful discussion and learn how to position yourself or your firm for future success, watch the full episode on YouTube or listen on your favorite podcast platform.