Aging Client Base Pushes RIAs to Prioritize Organic Growth

Registered investment advisors face a structural drag on organic growth that most are underequipped to counteract — and the math is getting harder as their client bases age, according to Cerulli Associates’ latest Americas Asset and Wealth Management Edition.

More than half of RIA clients are age 50 or older, and 25% are 60 or older — cohorts either in or approaching the decumulation phase, when withdrawals accelerate and assets decline. Regular income distributions and one-time withdrawals accounted for 56% of RIA outflows in 2025. Even before factoring in client departures, RIAs typically experience annual asset attrition of 2% to 5% of AUM — a persistent baseline headwind that requires continuous new business just to stay flat.

“Without a dedicated business development focus, RIAs immediately put themselves at a disadvantage, as client assets naturally tend to decline throughout the year. In many regards, this can dampen a firm’s ability to expand,” said Stephen Caruso, director, Cerulli Associates.

Referrals remain the dominant new client acquisition channel, accounting for 74% of new business — but most RIAs treat them passively. Only 51% of firms proactively ask for referrals, with 22% planning to implement a formal referral strategy. Marketing investment is equally thin: RIAs allocate an average of just 5% of total expenses to marketing, and only 14% employ a dedicated marketing resource.

Smaller or undercapitalized firms increasingly rely on fractional chief marketing officers, external consultants, or automation technology to fill the gap. Caruso said firms without dedicated resources risk inconsistent follow-through and capacity constraints that limit their ability to convert prospects — a compounding disadvantage in a consolidating market where larger platforms are investing heavily in business development infrastructure.