More than 72% of Rookie Advisors Still Fail out of the Industry: Cerulli
June 27, 2023 | Lisa Fu | AdvisorHub
Teaming and better educational support could help improve poor success rates among rookie advisors and stave off a potential shortfall in advisors as more experienced colleagues retire, according to a report from Boston-based consulting firm Cerulli Associates.
High failure rates among novices have plagued the industry for years. Last year, more than 72% of trainees dropped out before becoming full-fledged advisors, Cerulli said. That percentage was roughly the same as the failure rate in 2021. At the same time, more than 106,000, or 40%, of veteran brokers are planning to exit the industry over the next decade, which leaves almost $12 trillion in assets up for grabs, Cerulli said.
