Adviser report reveals increasing wealth
Amid the generational avalanche that is retiring baby boomers, Adviser Ratings released their 7th Annual Australian Financial Advice Landscape Report – 2025, earlier this month, which highlighted some fascinating shifts in the adviser ecosystem and in the relationship between clients and financial advisers.
The report reveals an industry at a pivotal point – stable in adviser numbers yet facing persistent challenges in accessibility, demographic change, and evolving consumer expectations.
Consumers and investors
Stagnant advice penetration: Only 10.4 per cent of Australians receive professional advice. That is unchanged since 2024, despite a 189 per cent increase in advice inquiries since 2020, and it suggests structural barriers are preventing those interested in receiving advice from engaging with an adviser.
Shifting priorities: Retirement planning remains dominant (74 per cent of adviser-reported client priorities), but interest in cryptocurrency (up to 30 per cent), intergenerational wealth transfer (39 per cent), and insurance adequacy (33 per cent) is rising.
Perhaps somewhat predictably, Environmental, Social & Governance (ESG) investing interest has eased from its 2023 peak.
Wealth transfer surge: 41 per cent of clients now expect to transfer more than $500,000 to the next generation – up from 31 per cent in 2024 – driving demand for integrated estate, tax, and family governance strategies.
Engagement trends: Recurring relationships account for more than three quarters (77 per cent) of client engagements. Meanwhile, average client portfolios have grown to $758,000, and advisers are increasingly targeting high-value professional niches.
Advisers
Workforce stable: Adviser numbers have levelled at 15,500 in Australia after years of contraction. More than 70 per cent of those advisers have over a decade of experience, with 37 per cent having more than two decades. This reflects a deep pool of expertise but portends a future succession challenge.
Business model shift: 78 per cent of advisers now operate under privately-owned licensees, reflecting the industry’s decisive move away from institutional alignment. In an improving sign for clients, as well as a sign of individual business stability, strategic business optimisation by independent advisers is replacing reactive restructuring.
Profitability and fees: Median advice fees rose 18 per cent in 2025 to $4,668, a 67 per cent increase over five years, driven by higher service costs and a focus on higher-value clients. A 67 per cent increase over five years, is equivalent to an annual compounded growth rate in fees of 10.8 per cent.
Market and technology developments
Separately managed account (SMA) standardisation: The launch of the SMA Reporting Standard addresses the $300 billion managed accounts sector’s lack of uniform data, improving transparency and efficiency ahead of a forecast $3.5 trillion intergenerational wealth transfer.
Technology adoption: 74 per cent of practices are using or planning to use artificial intelligence (AI), with advanced adopters achieving margins up to 29 per cent. Applications include AI-driven underwriting, document automation, and predictive analytics, enhancing scalability and service delivery.
Strategic implications
Advisers that tailor offerings for younger Australians, embed family wealth transfer strategies, engage with emerging investment themes, and leverage technology for efficiency stand to capture significant market share. However, succession planning, advice affordability, and addressing the 90 per cent of Australians without an adviser remain pressing strategic imperatives, with the latter being one I personally hope can be solved by AI-derived solutions.
Roger Montgomery is the Founder and Chairman of Montgomery Investment Management. Roger has over three decades of experience in funds management and related activities, including equities analysis, equity and derivatives strategy, trading and stockbroking. Prior to establishing Montgomery, Roger held positions at Ord Minnett Jardine Fleming, BT (Australia) Limited and Merrill Lynch.
He is also author of best-selling investment guide-book for the stock market, Value.able – how to value the best stocks and buy them for less than they are worth.
Roger appears regularly on television and radio, and in the press, including ABC radio and TV, The Australian and Ausbiz. View upcoming media appearances.
This post was contributed by a representative of Montgomery Investment Management Pty Limited (AFSL No. 354564). The principal purpose of this post is to provide factual information and not provide financial product advice. Additionally, the information provided is not intended to provide any recommendation or opinion about any financial product. Any commentary and statements of opinion however may contain general advice only that is prepared without taking into account your personal objectives, financial circumstances or needs. Because of this, before acting on any of the information provided, you should always consider its appropriateness in light of your personal objectives, financial circumstances and needs and should consider seeking independent advice from a financial advisor if necessary before making any decisions. This post specifically excludes personal advice.
