In 2023, 75% of financial advisory clients considered switching or switched advisors, according to a survey by YCharts, an investment research and client communications platform, up sharply from 47% between 2020 and 2022.

“Upon reviewing the initial survey results, we were taken aback by the notable increase—compared to our previous year’s findings—of clients who indicated they were considering switching advisors, compelling us to conduct the survey twice to validate. With similar results, a resounding theme was clear: clients want more and better communication from their advisor,” said Sean Brown, CEO of YCharts.

Wealthier and younger clients were more likely to consider their advisory choices. Approximately two-thirds of clients with more than $500,000 under management changed advisors, as did 58% of clients aged 30 to 44.

While the survey did not identify specific reasons why so many clients are examining their alternatives, it did provide some indications.

Approximately 63% of clients reported hearing from their financial advisor at least once every three months, although 79% stated they would prefer to hear from their advisor that frequently. That compares with 47% of clients in 2023 who indicated they wanted to hear from their financial advisor at least once every three months.

According to YCharts, more regular communication with advisors appears to increase client confidence in a volatile economy. Approximately 71% of clients who hear from their advisor monthly stated they felt very comfortable with their financial plan in the case of a recession, compared to 22% of clients who only hear from their advisor a few times a year.

The survey included responses from 775 people who work with a financial advisor. Respondents were 51% male and 49% female. Approximately 57% were under the age of 45, and 60% had less than $500,000 in managed assets.