A new survey from Kestra Financial reveals a striking gap in succession preparedness among registered investment advisor (RIA) firm owners approaching retirement. According to the findings, as reported by AdvisorHub, just 6 percent of surveyed owners have a fully documented succession plan in place.

Data from Cerulli Associates projects that over 109,000 financial advisors will retire within the next decade. A separate McKinsey & Co. report warns of a shortage of roughly 100,000 advisors by 2034.

Kestra's study highlights key challenges fueling this issue. Only 41 percent of firm owners expecting to retire within 10 years had transferred equity to a successor. Many cited difficulty finding candidates who share their values, while others simply believed they still had "plenty of time."

On the other side of the equation, next-generation advisors expressed frustration over limited leadership opportunities and a lack of structured training. Just 35 percent of potential successors felt fully prepared to assume leadership roles, as reported by AdvisorHub.

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