The U.S. wealth management industry is at a pivotal moment. As clients increasingly seek comprehensive guidance—including tax, retirement, estate, and life-stage planning—advice revenues have soared from around $150 billion in 2015 to $260 billion in 2024.
Yet, this demand is colliding with a talent crunch. By 2034, the industry faces a projected shortage of 90,000–110,000 advisors unless structural change occurs.
Insight:
To thrive, forward‑thinking advisors must adopt a holistic approach—not just to serve more clients, but to stand out, drive productivity, and attract the next wave of talent.
Demand dynamics: 52% of affluent clients now seek comprehensive planning—up from 29% in 2018
Value premium: Nearly 80% are willing to pay at least 50 bps more for human, holistic guidance
Advisor shortage: Headcount growth slowing to –0.2% annually; retirement expected to outpace hiring
Key takeaway: Clients need more, and fewer advisors are available—holistic practice is a competitive edge.
Evolving scope: McKinsey expects the future advisor to become a “life and wealth coach” offering deep, analytically driven, multilayered advice.
Holistic services to integrate:
Investment planning
Tax optimization
Estate and legacy structuring
Insurance and risk planning
Lifestyle and personal financial wellness
Business model implications:
Fees tied to comprehensive planning, not just AUM
Future-proof branding based on trust and depth
Three productivity levers McKinsey emphasizes:
Lead gen centralization → frees up 3–4% advisor capacity
Team-based model: Teamed advisors manage ~20% more AUM than solos
Tech & AI integration: Gen‑AI boosts load by 7–15%, automates proposals, compliance, and insights
Workflow in action:
Automated financial planning engines
AI-assisted reporting and rebalancing
Workflow automation for onboarding, compliance, and event tracking
Goal: Deliver deeper advice without increasing headcount—critical in the face of advisor scarcity.
Talent pipeline crisis: 110,000 advisors (~42% of assets) set to retire in a decade
Hiring gap: Industry must recruit 30k–80k net new advisors vs only ~8k over the past decade
Best-fit recruitment strategies:
Retention via development: Structured mentorship, clear growth paths, emphasis on service roles vs product pushing
Step-by-step plan:
Holistic audit: Assess your current service coverage, identify gaps
Modular offering creation: Define tiered packages—from planning-only to ultra-comprehensive
Build multi-disciplinary teams: Onboard specialists (tax, insurance, estate) to supplement advisors
Enable with tech: CRM, financial planning software, secure portals, AI tools
Train & develop: Bring your team up to speed in holistic planning, behavioral finance, client experience
Marketing for position: Promote your holistic identity through branding, digital channels, and referrals
Case study highlight: Example advisor who integrated tax, estate, and risk planning, doubling engagement rates in 12 months
Time constraints: Use tech and delegation to offset the new scope
Financial modeling fears: Start small with add-on services before full integration
Tool concerns: Leverage trusted platforms—e.g. iVaultx with eMoney, RightCapital, Advizr, and AI tools like Redwood Payments
Regulatory considerations: Update agreements and ensure compliance measures align with expanded service offerings
As demand intensifies and advisor supply shrinks, becoming a holistic advisor is more than an advantage—it’s essential. Invite readers to:
Download your full Holistic Advisor Guide
Contact your firm to explore where you stand as a firm. Use this comparison matrix for reference.
Attend webinars or training sessions on wealth-tech integration
References
McKinsey & Company. (2020). The future of US wealth management: Imperatives for success. Retrieved from https://www.mckinsey.com
McKinsey & Company. (2025, February). The looming advisor shortage in US wealth management. Retrieved from https://www.mckinsey.com