According to AdvisorHub, a growing number of registered investment adviser (RIA) firms are reporting higher levels of adviser attrition, according to DeVoe & Company's latest annual survey. The findings raise concerns about succession planning and talent retention across the industry.

Nearly 10 percent of firms reported "much higher" attrition, while almost 20 percent saw "somewhat higher" departures compared to prior years. In 2023, only 2 percent of firms reported "much higher" attrition and 14 percent noted "somewhat higher" exits. DeVoe warned that this shift signals "emerging disengagement particularly among next-generation professionals seeking growth, recognition, and long-term opportunity."

AdvisorHub reports that, the survey, which covered 117 RIA leaders from May 2024 to March 2025, pointed to weaknesses in people development. "Firms are slipping backward on the fundamentals of people development," the report stated. "Many of the systems that drive employee growth, engagement, and retention are stalling or eroding."

Younger professionals are demanding clearer career structures. Sixty-eight percent of respondents cited a "well-defined career path" as the top request from next-generation advisors. Forty-six percent sought a path to ownership, while roughly one-third wanted more coaching and training. However, the industry appears to be moving "in the opposite direction."

According to the report, only 40 percent of RIAs maintain "adequate" training programs, leaving most junior advisors to learn "on the fly." Just 38 percent of firms have clearly defined career paths, a decline from half in 2024 and nearly 60 percent two years ago. More than half rely on informal approaches to career development, while up to 8 percent provide no structure at all.

AdvisorHub reports that attrition also is jeopardizing succession planning. Only 27 percent of respondents believe they have a next generation ready to assume leadership roles, while 44 percent anticipate a "bumpy transition." DeVoe's report urges firms to start succession planning early, including selling equity well before ownership transitions become urgent.

Financial Advisor Transitions consults advisors nationwide to explore employment transition options and to preserve and protect their practice in any transition that they make.