Financial advisor industry statistics: key data and trends

Overview of the financial advisor industry

According to the Financial Advisory Global Market Report 2025, the industry’s current value stands at $218.96 billion in 2025. This value has grown year-on-year at a compound annual growth rate of 4.6%. As of the latest industry data published by BLS in 2023, there were over 321,000 financial advisors in the United States.

This industry evaluation covers various main services, including corporate finance, accounting and tax advisory services, risk and wealth management, and others.

The financial planning sector has a longstanding history in the US, starting with the introduction of the Securities Act of 1933 and the establishment of the Securities and Exchange Commission (SEC) in 1934.

Richard Felder and John Keeble, the founders of the Financial Services Corporation, developed their first financial plan in 1963. This plan laid the foundation for future financial advisory and planning activities.

The National Association of Personal Financial Advisors (NAPFA) was established in 1983. This paved the way for standardization through the Financial Planning Standards Board (2004) and the Financial Planning Coalition (2008).

What are the key financial advisor industry statistics to know in 2025?

Financial advisor industry data reveals that these will be this year’s key statistics:

Growth trends

The advisory market is expected to grow significantly over the coming years. Projections suggest that it could be worth $273.67 billion by 2029, with a compound annual growth rate (CAGR) of 5.7%.

This growth will be driven largely by ESG investments, fintech collaborations, and changes in the industry's regulations.

Key trends, such as the use of digital technology, advanced technological developments, personalization in financial planning, and the growth of robo-advisors, will also drive future growth.

Financial advisor data from the Adviser Society suggests that the industry grew in 2024, with around 21,000 firms operating in the US—a 5% increase over the previous year. Data from the Bureau of Labor Statistics (BLS) shows a 1.4 % year-on-year rise in the number of advisors in 2023.

Demographics of financial advisors

Demographic data of financial advisors in the US in 2025 notes that 72.3% of advisors are male, and 27.7% are female. The average age of a professional advisor is 44, and the most prevalent ethnicity is Caucasian, at 72.1% of advisors.

Hispanic and Latino advisors comprise an estimated 9.5% of the market, followed by Asian advisors at 8.3% and African American advisors at 5.6%.

Financial advisor statistics from Finance Strategists show that advisors from unknown ethnic backgrounds earn the highest average salary of $68,312 per year, followed by Asian advisors at $67,128.

While women are becoming more represented in the market, they earn less than their male counterparts on average. A female advisor earned around $113,974 per year as of 2022, compared to an average of $192,649 for men.

Education and certifications

Recent financial advisor industry data indicates that the majority of financial advisors hold a bachelor’s degree as their highest attained level of education.

Around 74% of advisors hold a bachelor’s degree. A further 12% have earned a master’s degree. The remaining 14% hold a high school diploma, associate's degree, doctorate, or other qualification.

Advisors with a higher level of education also earn higher salaries on average. Professionals with a doctorate earn roughly $86,634 per annum, followed by those holding a master’s degree who earn $76,666 per annum.

In addition to higher education, many financial advisors hold common certifications like CFP (certified financial planner) and CFA (chartered financial analyst). As of January 1, 2025, there were 103,093 CFP-certified professionals in the United States and over 190,000 CFA charter holders globally.

What are some financial advisor business models?

In the financial advisor industry, these are the most common business models:

Independent advisors vs. wirehouses

Wirehouses have long been the standard model for financial advisory services. Advisors who work as part of wirehouses join established firms and brands and can use existing infrastructure and client bases to provide their services.

Independent advisors essentially own their businesses and are responsible for building their own infrastructure, client bases, and revenue streams.

A report by Cerulli Associates projects that wirehouses’ market share will drop from 15% in 2023 to 14% between now and 2028. Independent brokers held the highest market share, at 16.5%, as of 2023.

Fee structures

The financial advisory market has three main fee structures: fee-only, commission-based, and hybrid. Fee-only advisors are completely compensated through the fees their clients pay, while commission-based advisors earn their income by selling various financial products. They receive a commission as a percentage of each investment product they sell to a client.

Hybrid financial advisors use a combined approach, charging clients fees for their advice and earning commissions from product and service sales.

Cerulli Associates reports that fee-based advisory structures are emerging as the leading fee model for advisory firms. This trend is being driven by the ability of fee-based programs to manage financial portfolios at scale.

What are some client and market trends?

Current financial advisor data reveals the following client and market trends:

Client preferences

Financial advisory clients in 2025 have a number of unique preferences to consider. Younger, technologically literate generations seek highly personalized financial advice and digital-first products and services.

Today’s clients also favor targeted, concise advice in specific niche areas, such as sustainable investments or cryptocurrency asset management.

Although equities may see stable economic growth this year, debates around fiscal policy have created an undercurrent of economic uncertainty. Clients are seeking proactive financial plans and actionable, comprehensible advice to protect their assets during volatile times.

Overall, the demand for fiduciary advisors is growing.

The BLS projects that 55,000 new financial advisor jobs will be added to the market between 2023 and 2033.

Digital transformation

Developments like AI-powered advisory tools, analytics, and automation platforms allow for seamless portfolio management. They also enable advisors to interact more personally with their clients while successfully scaling their operations.

The adoption of robo-advisors, in particular, is surging.

By 2028, the global value of assets, up from under management (AUM) by robo-advisors, will reach around $2.33 trillion globally by 2028, rising from a value of $1.37 trillion as of 2023.

What challenges is the financial advisor industry facing?

Some challenges affect the entire industry and currently include:

Regulatory pressures

The financial service regulatory landscape is shifting rapidly, driven by political changes, strategic tension, advancing technology, and major societal shifts.

Firms and advisors can expect to encounter challenges, such as the industry's growing fragmentation. To meet clients' needs, they will need to focus on fostering resilience and effectively managing risk in changing environments.

Talent shortages

The finance industry is expected to face widespread labor shortages in 2025. The working-age demographic in developed nations reached its peak in 2023 and may decrease by as many as 47 million professionals by 2050.

The Wealth Solutions Report also highlights an ongoing shortage of next-generation financial advisors, which may impact the market in the coming years.

What should financial advisors be considering for the future?

The financial advisor industry is on an upward trajectory in 2025, fueled by advancements in financial technology, a growing trend toward sustainable investing, and shifting client demographics.

A rise in high-net-worth individuals may also provide opportunities for financial advisory growth. The World Wealth Report 2024 cites a 5.1% increase in their numbers during that year.

Work with Unbiased

The financial advisor industry is showing notable growth potential in 2025, powered by factors like fintech developments, technological advancements, financial planning personalization, and a rise in demand for high-net-worth portfolio management and sustainable investment advice.

Make the most of the year’s opportunities, streamline your lead generation strategies, and grow your firm by joining Unbiased Pro today.