Introduction
While the financial advisor industry was stable in 2024 (and even experienced year-over-year growth in certain areas), economic uncertainty continues to concern advisors and clients.
One thing’s for certain: technology will be the defining factor for financial advisors in 2025. Clients expect a higher level of service and a polished feel to their advisory engagements. Your team needs tools to manage back-office operations, giving them more time with clients.
But tech isn’t the only area to focus on. To prepare for 2025, you need to see what’s on the horizon for the industry as a whole.
Thankfully, these 27+ financial advisor statistics can serve as your guide posts, providing snapshots and insights to help you make more informed decisions for your firm and clients.
Financial Advisory Firms Statistics
Clients like working with financial advisors, as 61% of advised investors strongly agree that having a financial advisor positively impacted the value of their investments. However, financial advisory firms still battle with operational inefficiencies across their organization.
1. According to the Airbase Annual Benchmark survey of 745 financial advisory firms, 38% of respondents spend more than a quarter of their time on manual processes. In a large finance team (over 25 people), this number rises to 44%
2. 41% of employees at financial advisory firms fix errors manually despite scientific proof that manual data entry and categorization causes more errors.
3. According to a Kitces survey of 1,000 financial advisors, advisors spend an average of 27 hours per week on direct client tasks. Advisors spend less than half their time on business development, management, investment management, professional development, and admin.
4. The same survey found newer firms prioritize time spent on business development, while more experienced firms prioritize their clients.
a. On average, firms with 5 or fewer years of experience spend almost 12 hours on business development and only 7 hours per week on client meetings.
b. Meanwhile, firms with 15+ years of experience spend an average of 9 hours per week on business development and 8 hours on client meetings.
Current Financial Advisor Technology Trends
Keeping on top of technology trends in the financial services industry will be key to standing out and keeping your competitive edge in 2025.
According to a National University study, 43% of consumers use AI for financial advice. As a result, 83% of financial advisors believe AI will directly and indirectly impact client-advisor relationships.
5. According to a poll at the Artificial Intelligence in Financial Advice conference, 69% of financial advisors believe the future of client communication is through an online client portal.
6. A digital client portal can also help financial advisors secure more clients. According to an eMoney Advisor survey, 56% of clients who regularly use a client portal are twice as likely to make referrals.
7. In a 2024 Accenture survey of 500 financial advisors in the US and Canada, 97% of participants believe that AI will help grow their book of business by 20%.
8. In the same survey, 79% claimed they are “digitally ready” to adopt AI.
9. 55% of respondents agree that by 2027, AI will revolutionize the financial advice industry.
10. However, according to a 2024 FE Fundinfo survey, only 15% of financial advisors currently use AI in their organizations, with 4% currently implementing AI solutions.
11. 55% of financial advisors increased technology spending in 2024, indicating firms are looking to adopt more solutions.
12. 92% of financial advisors use cash flow forecasting software.
13. In the InvestmentNews Research 2022 Adviser Technology Study, 57% of respondents said that their biggest challenge with technology was the integration challenges between their core applications.
14. Investing in technology is crucial for employee retention: 51% of financial advisors are considering leaving their current employer for one with a better tech stack, according to a 2022 Deloitte report.
Financial Advisor Salary and Demographic Stats
Being a financial advisor in 2025 is still a lucrative career choice.
According to a 2022 DATAUSA ranking based on data from the Census Bureau, financial advisors were #11 on the list of detailed occupations in terms of average annual wage.
15. The U.S. Bureau of Labor Statistics (BLS) estimates that there are 272,190 personal financial advisors.
16. According to BLS, the median annual salary for financial advisors is $99,580. The mean annual average is $150,670. This is higher than the national average for other professions—$60,580.
17. However, Indeed estimates the annual base salary at $72,133 with a $17,800 bonus earned on average.
18. California has the highest number of financial advisors per state, with over 32,000 advisors based in the Golden State.
19. 72% of financial advisors are men, and 28% are women.
20. Only 11% of financial advisors are under 30 years old. 28% are in their 30s, and 61% are over 40.
21. The average age of financial advisors is 44.9 years.
22. Most financial advisors (74%) hold a bachelor’s degree. Only 12% of financial advisors hold a master’s level degree.
Financial Advisor Job Statistics
While the circumstances of financial advisors have not changed in recent years, 10-year predictions show a significant boom in the industry.
23. Only 5% of financial advisors work at an organization with less than 50 employees. However, 29% of the industry works at companies with over 10,000 employees.
24. 61% of financial advisors would like to work in the private sector. When asked about their preference, only 31% would work in the public sector, 6% in education, and 2% in the government sector.
25. In 2024, the unemployment rate of finance advisors was only 1.7%.
26. U.S. News estimates that there are over 42,000 financial advisor jobs available in the United States.
27. According to BLS, the 10-year projected job growth (CAGR) for financial advisors is 10.28% between 2019 and 2029. In comparison, the national average is only 3.71% for the same forecasting period.
What Financial Advisors Should Consider for 2025
While retention is high for financial advisors, it’s not guaranteed. If you want to reassure your clients and your team they’ve made the best choice, you need to ensure your advisory leads the way. From technology to smooth operations to the right pay, there’s a lot to navigate.
But it starts with great tech. A well-connected technology stack that allows you to transition between accounts seamlessly makes client management, operations, and firm growth easier.
CircleBlack combines your applications into one easy-to-use platform, so you get more time to do the work you want—speak with your clients and guide them to success. From our client-friendly portal to our CRM for easy account tracking, you’ll get all the tools and integrations you need to serve your clients from one tab.