April 22, 2021

Not to Be Deterred

Despite the pandemic, firms aim to enhance profitability.

Reported by PLANADVISER staff

Nationwide’s sixth annual Advisor Authority study highlights how top-performing advisers stay focused on protecting their clients and their practice for future profitability.

The impact of COVID-19 has been felt by even the most profitable firms. Nearing the close of last year’s second quarter, only 57% of successful advisers and financial professionals expected their practice’s profitability to increase in the next 12 months, compared with 81% in 2019—a decline of 24%. Moreover, these top performers said the pandemic was their No. 1 reason for concern (33%).

To confront their profitability worries, successful advisers, besides adopting defensive and protective measures, are targeting new clients as a strategy for future growth, the study says.

Advisers Who Expected Their Firm’s Profitability to Grow*

Successful advisers

All other advisers

2020

57%

52%

2019

81%

74%

2018

90%

82%

2017

83%

80%

2016

85%

74%

2015

86%

80%

*All findings are from a survey conducted May 27, 2020, through June 25, 2020. Advisers were asked to project for the next 12 months.
Source: Nationwide Retirement Institute, Advisor Authority Survey, conducted by The Harris Poll for Nationwide

The Generation Successful Advisers Are Targeting for New Clients

Generation X (born 1965 – 1980)

37%

Millennials (born 1981 – 1996)

28%

Baby Boomers (born 1946 – 1964)

19%

Generation Z (born 1997 or later)

10%

Matures (born 1945 or earlier)

All generations

Source: Nationwide Retirement Institute, Advisor Authority Survey, conducted by The Harris Poll for Nationwide