Don’t count on business sale to fund retirement

Advisors planning to sell their practices and retire will find themselves in a highly competitive sellers’ market in 10 to 15 years, says a survey by Maximizer Services.

In Canada, 57% of advisors are already over age 50. The survey also reveals close to 30% of all advisors plan to retire in the next 10 years and 53% aim to give up work within the next 15 years.

Read: Don’t wait for succession planning to become mandatory

With such a glut of practices up for sale as the majority of owners approach retirement age, it will be difficult for advisors to sell their practices at a premium.

“With so many financial planners looking to retire at around the same time, anyone relying on the sale of their firm and its book of business needs to start building the value right now,” says John Easton, director, Strategic Accounts at Maximizer Services.

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Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.