The Future of Financial Planning
- Claire Carpenter
- Oct 14
- 2 min read
If you’re considering financial planning and wealth management as a career path, you’ve likely heard that the job market will be significantly more accessible and dynamic by the time that you graduate. That projection holds true–financial planners will be in high demand in coming years. In fact, the still-young wealth management industry is undergoing many notable changes as it matures.
Wealth management firms in the United States could be 100,000 financial advisors short of reaching market equilibrium to meet consumer demand by 2034. This can be attributed to the wave of experienced financial planners expected to retire within the next 10 years. This timeline makes sense– the first CFP exam was established in 1972, stimulating growth and prestige for the wealth management sector. Now, as the average age of a financial planner exceeds 50, a large generational shift is looming. The CFP board has seen an increase in test takers, but not enough to offset the anticipated surge in retirees. This transition period offers students a rare opportunity to establish themselves professionally with momentum driven by the high mobility of an underserved job market.
Financial planning used to be a simple market: fewer investment options, fewer necessary qualifying certifications, and less-digitalized processes made smart decisions more obvious. One of the most significant shifts in this industry is in the growing integration of Artificial Intelligence systems. Deloitte recently released a platform called FinanceAI, an artificial intelligence tool available to answer questions and offer solutions to human financial experiences. One of many new applications of AI, Deloitte’s program signifies the upcoming battle which both current and future financial planners will have to combat to stay competitive in this rapidly-changing landscape. However, many firms are taking action to stay client-oriented and seem more personable. The Financial Planning Association (FPA) conducted a study in June of 2024, which showed that 88% of financial planning firms around the country are working harder to understand client values to better integrate these into asset allocation procedures. This shift towards a more client-centered approach in financial planning indicates a drive to stay ahead of artificial intelligence and accomplish what it cannot.
There are many factors that will shape the future of the wealth management industry, with rising retirement and artificial intelligence being the drivers of change. While the future of the personal finance sector is certainly set to experience major shifts in the coming years, aspiring financial planners can rise to meet these changes, successfully adapting to establish themselves in a swiftly changing market.
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