Financial Advisers Project 54% of Clients Will Have Comprehensive Plans by 2027, Cerulli Says

Financial advisers expect 54% of their clients to receive comprehensive, ongoing financial planning by 2027, up from 48% currently, according to research by Cerulli Associates.

The projected increase reflects growing client demand, technological advancement and greater collaboration among advisers, Cerulli said. Financial advisers increasingly view comprehensive planning as a competitive differentiator against self-directed brokerage platforms.

“Financial planning remains the primary way for advisers to engage with clients and compete with well-known online brokerage platforms,” said Noah Serianni, research analyst at Cerulli. “Investors have grown accustomed to fast transaction capabilities, easy-to-use interfaces, and basic planning features and expect the same from their financial advisers.”

The latest findings are complemented by Cerulli data AltsWire reported earlier this month, which showed that the share of affluent investors willing to pay for financial advice had risen to 68%, up from 38% in 2010. The 30-percentage-point increase, which Cerulli attributed to the proliferation of fiduciary advice models, reflected a broadening acceptance of fee-based advice.

Retail direct providers – self-directed brokerage platforms – have grown at a five-year compound annual growth rate, or CAGR, of 14.3%, surpassing all adviser-sold segments, including the independent registered investment adviser channel, which posted a five-year CAGR of 11.4%.

Advisers who have integrated comprehensive planning into their practice report a range of benefits, according to Cerulli. Some 83% cite deeper client engagement; 79% report an enhanced ability to help clients pursue their financial goals; and 73% identify comprehensive planning as a primary driver of client retention.

Technology remains a challenge. While Cerulli describes technology as a “critical part” of the modern planning experience, particularly for younger investors, 58% of advisers said their existing financial planning tools are deficient, citing a lack of key features, necessary functionalities or adequate integrations.

“Retail investors represent a fast-growing segment, and financial advisers of all sizes would be wise to segment and expand their capabilities to match the growing expectations of these investors for comprehensive, technology-enabled, financial advice,” concluded Serianni.

Headquartered in Boston, Cerulli Associates is an international research and consulting firm that provides financial institutions with guidance in strategic positioning and new business.

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