" So, while the average age is gradually reducing, the structural challenge facing the sector is still very real "
new advisers through academy programmes, particularly within larger firms, with the 30 – 39 age group growing as a result.
That influx of new talent is an encouraging sign for the long-term sustainability of the sector. And, while many of these advisers are starting their careers within larger firms, it’ s reasonable to expect that a proportion will, over time, look to establish their own businesses. If so, this could help to rebalance the market and support the next generation of smaller, independent firms.
At the same time, however, there remain some important demographic realities. Around half of the adviser population is now over the age of 50, while there are only 171 advisers in the UK under the age of 25. So, while the average age is gradually reducing, the structural challenge facing the sector is still very real. Before we consider why this matters, it’ s worth looking at some of the factors driving these changes.
As you’ d expect, one is the increasing regulatory burden. Over the past few years, expectations around governance, oversight and management information have increased substantially, particularly following the introduction of the Consumer Duty. For many smaller firms, meeting these expectations can be both operationally and financially challenging.
The second factor is the rising cost of running an advice business. Professional indemnity insurance, compliance costs and the need to invest in modern technology platforms all place pressure on margins.
Thirdly, many smaller firms are heavily reliant on one or two key individuals. This creates vulnerability. If an adviser becomes ill, dies or needs to step away from the business unexpectedly, clients can suddenly be left without support and the firm may have limited continuity options.
" Ensuring continuity of advice and service is therefore no longer a‘ nice to have’ – it’ s an essential part of meeting regulatory expectations."
A fourth issue is that many firms delay succession or exit planning. Without a clear plan in place, the options available become increasingly limited over time.
Finally, the broader trend towards consolidation cannot be ignored. Larger firms are often able to achieve greater scale, efficiency and stronger alignment with regulatory expectations. At the same time, this creates both challenges and opportunities across the market, particularly for firms considering their long-term strategy.
All of these factors together are reshaping the advice landscape.
I’ m sure everyone reading this understands why this matters. Firstly, because consumers benefit from choice. If we believe in personalised advice – and the vast majority of advisers I’ ve spoken to recently very much do – then maintaining a diverse market remains critically important.
But perhaps the most important question is what happens to the clients of firms that no longer exist? Where do those clients go? Who ensures continuity of service? And are their interests properly protected?
These are questions the sector needs to take seriously, and they lead directly to the role of the Consumer Duty, which has heightened expectations across the board. Continuity planning sits right at the heart of avoiding foreseeable harm.
July 2026 | 5