No exit strategy: Why many financial advisors aren’t ready to hand off your portfolio

When you work with a financial advisor, you’re placing enormous trust in them, not just to manage your investments, but to guide your biggest life decisions. What happens if that advisor retires, switches firms or is suddenly unable to continue?

That’s where succession planning comes in. A succession plan outlines who will take over your advisor’s responsibilities and how the transition will happen, ideally, without disrupting your financial goals.

But according to a new survey commissioned by Investment Planning Counsel (IPC), the majority of financial advisors don’t have a formal succession plan, and most clients don’t know what will happen if their advisor exits the picture.

The disconnect between advisors and clients

The survey data reveals a troubling mismatch between what clients expect and what advisors are actually prepared for:

• 83% of Canadians who work with an advisor say they’re concerned about what happens when their advisor retires
• Over half say their advisor hasn’t clearly communicated what that transition would look like
• 43% worry their investments won’t be properly protected by a new advisor
• 35% fear a successor won’t understand their long-term financial goals
• 36% say trust will be harder to rebuild with someone new

Despite these client concerns, many advisors admit to putting off the succession planning process. While 65% of advisors surveyed in 2025 said they’ve at least started working on a plan or have an idea in mind, that still leaves a significant number with no concrete plan in place.

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Why advisors are hesitating

Advisors know succession is important, but that doesn’t mean they’re acting on it.

According to IPC’s survey of 361 independent advisors, nearly four in five cited reasons for delaying their succession planning. Some pointed to complexity or time constraints. Others simply don’t see retirement on the horizon.

Interestingly, almost 20% said they’re delaying retirement due to economic uncertainty and market volatility — a reminder that even the most experienced financial professionals are not immune to the financial pressures they help clients navigate.

And while they help others plan for retirement, advisors are often less prepared for their own transition. That’s a contradiction with consequences: No succession plan means less continuity for clients, especially if a sudden exit occurs.

What advisors say and why that’s not enough

“Developing a succession plan — which should always include a business continuity plan — is a must for financial advisors regardless of what stage they are at in their business,” John Novachis, EVP of Advisor Growth and Succession at IPC said in a statement.

“This will help maintain trust with clients and reassure them that their wealth planning needs will be taken care of both now and in the future.”

In fact, nearly 80% of advisors said that maintaining client trust and ensuring continuity for both clients and staff were very important when planning a transition. But acknowledgment alone isn’t solving the problem. Implementation is still lagging.

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What you can do as a client

If you're working with a financial advisor, here’s how to protect yourself and ensure your financial life won't be thrown off course:

1. Ask the tough questions Ask your advisor if they have a succession plan — and if so, who the successor is and how they’ve prepared them to take over.

2. Get it in writing A verbal commitment isn't enough. There should be a documented transition plan or formal partnership agreement in place.

3. Meet the successor If your advisor names a successor, request an introduction. You need to feel confident that the next advisor understands your goals and preferences.

4. Reassess your fit If your advisor can’t or won’t provide clarity, it may be time to explore alternatives. Financial stability depends on continuity and transparency.

Bottom line

Succession planning isn’t just a business detail for your advisor. It’s a critical safeguard for your financial future. Without it, even the best-laid plans can be jeopardized by an unexpected transition.

The data makes one thing clear: If you haven’t had a conversation with your advisor about succession, now is the time.

Survey Methodology

IPC commissioned Environics Research Group and Pollara Strategic Insight to conduct research on their behalf. Environics Research conducted an online survey of 361 independent financial advisors, fielded between April 21 and 26, 2025. Pollara Strategic Insights conducted an online survey with a sample of 1,545 adult Canadians between May 15th and 21st, 2025. Results have been weighted by gender, age, and region, using the latest census data, to be representative of the Canadian population.

• Previous Advisor-focused research study conducted for IPC by Environics Research in March 2021 which included a total of 358 independent financial advisors.

With files from Nicholas Sokic