Peak 65 and the Great Wealth Transfer: How Advisors Can Retain the Next Generation of Clients
We have reached “Peak 65.” This year, baby boomers will reach the retirement age of 65 in the same year than at any time before. The oldest Baby Boomers, born in 1946, are nearing 80 years old, approaching the average life expectancy in many developed nations.
This “Peak 65” demographic milestone marks the beginning of a historic shift: the Great Wealth Transfer, where an estimated $84 trillion in assets will pass from Baby Boomers to their heirs by 2045. However, this transition poses a significant challenge for wealth professionals.
Studies suggest that 80% of heirs dismiss their parents’ financial advisors after inheriting wealth. To avoid catastrophic portfolio runoff, advisors must act now to engage heirs, demonstrate value, and modernize their services—or risk losing trillions in assets under management.
1. What Is the Great Wealth Transfer?
The Great Wealth Transfer refers to the unprecedented intergenerational movement of assets as Baby Boomers, who hold over half of household wealth in most G20 countries, pass their estates to younger generations. This transfer includes real estate, investments, and businesses, reshaping the financial landscape.
For advisors, it represents both an opportunity and a threat: while $84 trillion in assets will change hands, most heirs are predisposed to seek new advisors who align with their values, communication preferences, and technological expectations.
2. Why Wealth Professionals Should Fear Portfolio Runoff
The stakes are high. Advisors who fail to build relationships with heirs risk losing not just inherited assets but also future earnings from younger clients. Consider these statistics:
69% of advisors admit they’re unprepared for the wealth transfer (Portfolio Adviser).
Heirs often associate their parents’ advisors with outdated practices, preferring digital-first, personalized solutions.
Affluent heirs frequently consolidate assets with institutions offering holistic planning, values-based investing, or AI-driven tools.
Without proactive retention strategies, firms could face a “silent runoff” as portfolios scatter to competitors.
3. How Advisors Can Dramatically Improve Retention
Engage Heirs Early
Start conversations well before wealth transfers occur. Invite heirs to participate in family financial planning meetings, educate them on estate structures, and address their unique goals (e.g., property ownership, debt management, values-based investing). Advisors who position themselves as lifelong trusted advisors to the entire household—not just custodians of parental wealth—will demonstrate their value to heirs.
Modernize Communication
Millennial and Gen Z heirs demand seamless digital experiences. Offer virtual meetings, mobile-friendly reporting, and real-time portfolio access. Tools like AI-agents can provide hyper-personalized insights, such as tax optimization strategies, property financial advice, or spending habit analyses, proving relevance to tech-savvy clients.
Prove Value Today
Heirs want advisors who solve their problems, not just their parents’. For example, advisors might help younger clients navigate student loans, homebuying, or digital asset allocations. By addressing their immediate needs, advisors position themselves as indispensable partners for wealth creation.
4. AI-Powered Advice: Bridging the Gap Between Generations
AI is no longer a buzzword—it’s a retention tool. Heirs gravitate toward firms leveraging technology to deliver faster, data-driven decisions. AI-powered platforms can:
Analyze spending patterns to recommend savings strategies.
Simulate long-term financial outcomes based on life events, including property purchases.
Automate routine tasks, freeing advisors to focus on relationship-building.
AI agents can support advisors with breadth and depth of analysis personalized to clients unique situations on a scale that was impossible a few years ago.
Advisors who adopt these tools signal innovation and adaptability, aligning with heirs’ expectations. For example, robo-advisors with hybrid human oversight blend efficiency with personalized service, appealing to digitally native clients.
Adapt or Lose the Trillion-Dollar Opportunity
The Great Wealth Transfer isn’t a distant event—it’s unfolding now. Advisors who dismiss heirs’ preferences risk irrelevance. By engaging successors early, embracing technology like AI, and proving value in real time, firms can secure their place in a competitive, evolving industry. The message is clear: modernize or miss out.
