What is the outlook for the US wealth management market?

The US wealth management market is extraordinarily vast. According to the Bureau of Labor Statistics, about 326,000 personal financial advisors (FA) were working in the US in 2024, and that number is projected to grow by 10% by 2034.

All signs point to a steadily growing market. However, technological advancements, the rise of independent advisory firms, an aging workforce and the biggest wealth transfer in history are driving dramatic changes in the industry’s landscape.

The current state of wealth management in the US

The US wealth management market remains competitive, but the balance of power between its main segments is shifting. Wirehouses such as Merrill Lynch, Morgan Stanley, UBS and Wells Fargo still command significant assets, but their grip is loosening as advisors migrate towards regional firms and RIAs.

At the same time, technology is changing how advisors deliver value and how clients expect to be served. Meanwhile, two coinciding trends (the aging advisor workforce and the record-breaking generational wealth transfer) are accelerating the need for new talent and new approaches.

These forces are colliding to redraw the US wealth management market. The coming year will be defined by how firms respond. Here’s a closer look at the five major trends shaping our industry’s future, and what it means for 2026.

1. The exodus of financial advisors from wirehouses

The move from wirehouses to smaller regional firms, boutiques and independents has accelerated in recent years, with Registered Investment Advisors (RIAs) becoming the most popular destination for transitioning advisors.

In 2025, 10% of financial advisors are expected to switch firms. Additionally, over the next three years, the projected advisor headcount in independent RIAs will increase by nearly 12%, and nearly 5% in independent broker-dealers. Meanwhile, the number of FAs in wirehouses will decline 5.7%.

This trend has been burgeoning for a while. Today, advisors want more autonomy and less restriction in their work, shunning the regulations and interference of big wirehouses and banks to gain more empowerment, freedom and flexibility. Many “breakaway brokers” leave because they feel like they’re just a number at a big firm – some of which boast advisor headcounts of more than 15,000.

While these huge firms have the big name, money and history attached to them, they can be dragged down by draconian decisions, restrictive management and one-size-fits-all policies. 

The appeal of smaller firms lies in the culture of empowerment. FAs who made the switch tell us their work is more streamlined and they can have a bigger impact, with more autonomy and influence and the potential for higher payouts.

1. RIAs are becoming wirehouses’ Achilles heel

As more FAs flock to the independent channel, RIAs are on-track to controlling nearly one-third of advised assets by 2027, according to Cerulli. In contrast, the big four wirehouses’ share of clients assets under management is expected to fall from 34.1% to 27.7%.

We’re already seeing this shift play out in the ultra-high-net-worth (UHNW) space. Many large private wealth teams managing billions have left wirehouses to form or join so-called “Super RIAs” or multi-family offices – firms like Cresset, New Edge and IEQ Capital. 

The success of these firms in recent years is telling. By moving to boutique independent platforms, UHNW advisor teams can offer their clients a more intimate family-office style environment with a broader range of services (tax, estate, concierge, etc.), often coupled with equity ownership stakes that can be very lucrative for the advisors who join.

The fact that an elite RIA like Cresset has grown to manage over $65–70 billion in assets by 2025 is a testament to how attractive the independent model has become for top teams.

1. How technology is impacting the US wealth management market

Technology continues to reshape the wealth management market, with the increasing use of AI, machine learning and client service automation. Automated investment services are gaining ground, too, with robo-advisors managing over $1 trillion in assets as of 2025. Forecasts predict that figure could approach $2 trillion within the next couple of years, as digital advice tools cement their role in the industry.

The most successful advisors going forward will be those who embrace technology as a tool, rather than see it as a threat. Many wealth management firms are already applying AI in areas like investment research, operations and client service. Roughly 73% are using AI for investment operations and for client servicing tasks according to one industry outlook, though only a small fraction have fully integrated these tools.

Still, the human, face-to-face element of wealth management cannot be replaced by technology. Trust and personal relationships remain paramount, especially when dealing with complex or emotional financial decisions. But technology can enhance the advisor-client relationship. For example, advisors using advanced analytics can deliver more personalized insights, automate routine portfolio tasks, and communicate more efficiently, freeing up time to focus on high-value client interactions.

Those advisors who refuse to embrace technology may find themselves with diminished client pools in the ever-nearing future. 

1. A new workforce is on the horizon

The wealth management workforce has looked the same for many years. But that’s beginning to change in 2025, and by 2026, may look entirely different. 

The advisor population is aging into retirement, creating both a talent crunch and an impetus for firms to recruit fresh faces. McKinsey’s prediction is that 110,000 advisors, equivalent to 38% of the workforce, will retire by 2034. This comes at a time when demand for financial advice is climbing. If firms don’t backfill with younger advisors, there could be a serious capacity shortfall.

Young advisors possess valuable experiences, particularly in the realm of technological fluency, adapting to new trends and connecting with modern clients. As the number of young investors grows, wealth management firms need to ensure they have the right advisors on board to capture these clients.

1. The greatest wealth transfer in history

One of the key challenges facing the industry is ‘The Great Wealth Transfer’, now valued at $105 trillion. With over half of that ($61tn) going to Millennials and Gen Z, wealth managers must start adapting their services to meet the unique needs of younger, tech-savvy clients. 

At the same time, they must start thinking about what talent they have on board, and if they are best placed to serve the next generation of ultra wealthy heirs. As nearly 40% of financial advisors approach retirement, this needs to become a top priority for wealth management firms going into 2026.

The wealth transfer also raises the competitive stakes: it’s a chance for firms to win new multi-generational relationships, but it’s also a risk if a firm fails to connect with the next generation. Notably, a vast majority of heirs do not stay with their parents’ financial advisor. One statistic indicates nearly 70% of women who inherit wealth change advisors after inheriting, often because they feel their advisors don’t understand their priorities.

This underscores how The Great Wealth Transfer is a make-or-break moment: those firms that evolve to serve the next generation, and offer services aligned with younger investors’ values, will capture tremendous growth, while those that don’t may see assets walk out the door.

Which candidates are most in demand? 

Looking forward to the 2026 hiring market, it will remain true that an experienced financial advisor with a strong book of business will be highly sought after by almost any firm, be it a wirehouse, RIA or boutique. With retirements picking up speed and a new generation of clients on the rise, it’s still very much a candidate-driven market, and firms will continue competing hard to attract high-producing advisors that drive growth.

It’s the quality and portability of the advisor’s book that will receive the most scrutiny. Those with the best books will get the best offers. It’s not uncommon for top-quartile advisors to receive very generous transition packages and signing bonuses as firms vie for their signature. 

These experienced, high-earning advisors will continue controlling the market into 2026. They’re commission-based, bring their own teams with them and dictate where they go next. If they are not being looked after at their current firm, they will look elsewhere.

These moves are never taken lightly. Top advisors are acutely aware that changing firms is a complex, disruptive process for them and their clients, so they do extensive due diligence and planning before any jump. But the fact remains: top advisors have options. 

In 2025 we continue to see substantial movement of million-dollar-plus producers between firms, as well as breakaway brokers going independent. The firms that can offer the right combination of economic incentive, cultural fit, platform capabilities, and client-friendly transition support are the ones who will win the recruiting battles of 2026. 

Hanover’s strategy for US wealth management into the future

At Hanover, we are disrupting the US wealth management executive search market. With more than four decades of combined experience, our senior partners lead a dedicated team that understands the nuances of the US wealth management industry.

We believe the service proposition most recruiters offer financial advisors is, quite frankly, poor.

That’s why we take a service-based approach to the market, actively communicating with passive candidates on a regular basis. We frequently meet with advisors, most of whom are not actively thinking of making a career move. We foster these relationships and keep in touch so that when the time is right, we are on hand to help.

Our national coverage and willingness to travel to meet people sets us apart, with a team of highly experienced wealth management recruiters across the US. We’re proactive and targeted, going above and beyond to ensure we get in front of the market’s best and most employable financial advisors.

Reach out to Hanover US

If you have an interest in wealth management executive search and the services we can offer you, don’t hesitate to get in touch. Let us be your agents and help you through the quagmire that is moving within the wealth management market. Contact us here to find out more.