Of the 27,000 independent financial advisers in the UK, three-quarters will be of retirement age in the next 10 years. This presents a huge opportunity for younger advisers, who will take up the mantle when their predecessors leave the workforce, explains Russell Brett.

At Matthew Douglas, we believe in the power of diversity – not simply to make a statement but to embed resilience across our entire organisation. A great example of this is the fact that our workforce is incredibly diverse when it comes to the age of our expert Independent financial advisers (IFAs).

At Matthew Douglas, the average age of our varied team members is just 39. This stands in stark contrast to the rest of our sector where 75% of IFAs are aged 50-59, with 20,250 IFAs set to retire by 2033, according to figures from Financial Planner Life podcast director Sam Oakes.

Speaking at the Change Festival hosted by the Chartered Institute of Securities and Investment and NextGen Planners, Sam explained that three quarters of IFAs will be eligible to leave the workforce and accept retirement in the next decade.

Clearly, there’s nothing bad about IFAs being older in terms of quality of service and expertise, but when so many IFAs are close to retiring at the same time, some firms will experience serious problems if they lack diversity.

Filling the vacuum: young IFAs will come to the forefront

More generally, this creates an invaluable opportunity for younger advisers, who will be in the position of looking after the client-base active in the market after this mass exodus from the workforce.

“This is a huge opportunity for the next generation of advisers coming through and those that are thinking of joining the profession,” Oakes said. “If they are retiring, the next generation of future advisers will be the ones who will be looking after their clients.”

Matthew Douglas Ltd is prepared to meet the challenge

In October, we won the national MoneyAge Diversity Award and so, unlike some firms, we won’t be frantically recruiting to fill the expected shortfall of advisers as they retire. Instead, we’re organically upskilling our workforce so that when the time comes for them to take over the accounts of their predecessors, they’ll have the practical knowledge to advise clients without qualms or concerns. 

From the client’s perspective, it will be a seamless transition that raises no questions beyond ‘so, how are my financial objectives shaping up?’

To learn more about how you can invest your money wisely to improve your own finances before retirement, get in touch with our expert team.