The most influential financial planning trends for advisors in 2025

Advancements in artificial intelligence. Updated regulations. A generational shift toward younger investors. In financial planning, everything is changing at once, and it’s reshaping how advisors work and how clients interact with money.

Clients now expect personalized service, sustainable investing, and fee transparency. Technology is enabling real-time planning, while regulatory shifts are forcing firms to reevaluate compliance processes.

In response to all these factors, advisors are moving away from one-size-fits-all models. They’re rethinking how they build relationships, deliver advice, structure services, and design long-term strategies — especially in the retirement planning space.

In this article, we break down six trends shaping financial advice right now: what’s changing, why it matters, and how you can adapt.

Leveraging AI and data to personalize advice 

AI tools can save advisors between 20–30% of their weekly workload by automating tasks like:

• Categorizing financial transactions

• Generating compliance reports

• Sending account review reminders

• Analyzing market trends for client portfolios

• Scanning documents for relevant changes

• Eliminating the need for manual data entry. 

But AI isn’t just a time-saver. It analyzes financial data to uncover patterns, predict outcomes, and provide tailored recommendations. Unlike traditional software, AI updates advice as new information becomes available, allowing advisors to respond immediately to changes in markets, cash flow, or client behavior. Over time, these systems learn from past decisions to improve recommendations.

And this is already happening: According to a recent Advisor360° survey, 85% of advisors describe generative AI as a benefit to their practice, and 76% are already seeing tangible improvements.

Unlike traditional financial planning software that relies on static inputs and templates, AI systems update advice based on new information as it becomes available, enabling advisors to respond immediately to changes in markets, client behavior, and cash flow — rather than having to wait for quarterly reviews. They can learn from past decisions to improve recommendations over time.  

And clients reap the rewards too, with advice that reflects their current financial situation, not just general benchmarks. 

This real-time, up-to-date, AI-assisted advising helps advisors to build trust with their clients.

ESG and sustainable investing

ESG investing considers environmental, social, and governance factors when selecting investments. Examples include:

• Environmental: Carbon emissions, water usage

• Social: Labor practices, community impact

• Governance: Board structure, shareholder rights

Global ESG assets surpassed $30 trillion in 2022 and are on track to surpass $40 trillion by 2030. This growth reflects a shift toward values-aligned investing, particularly among younger clients. More than half of investors under 40 now expect ESG to be part of every portfolio conversation. In contrast, clients over 55 tend to assess ESG options case by case.

Advisors can use several approaches to incorporate ESG:

• Exclusionary screening (removing certain industries)

• Positive screening (favoring high performers)

• Thematic investing (e.g., clean energy)

• ESG integration (weighing ESG factors in analysis)

• Impact investing (targeting measurable outcomes)

Performance varies by strategy and market conditions, but Morningstar reports that over half of sustainable funds outperformed traditional funds in 2023. This makes ESG a key consideration for advisors who want to keep pace with evolving client expectations.

Addressing demographic shifts — and tech adoption 

A significant wealth transfer is occurring, with an estimated $84 trillion moving from Baby Boomers to younger generations. This shift is reshaping who receives financial advice and how that advice is delivered.

Different generations have different technology expectations. Younger investors often prefer digital interactions, while older generations may rely more on phone calls or in-person meetings. 

To engage younger investors, advisors are using digital strategies like:

• Mobile-friendly onboarding

• Educational videos on financial topics

• Interactive planning dashboards

• Text-based customer support

• Visual data summaries

Modern clients expect tools that are easy to use and that work across devices — secure portals, mobile apps, digital document storage, and real-time messaging. These tools need to connect with existing systems to create an efficient experience for both advisors and clients.

Redefining fee structures and embracing fee transparency

Financial advisors earn income through different fee structures. In 2025, approximately 75% of advisors are using a fee-based model, while others use commissions or a combination of both. This shift reflects changing client preferences and updated fiduciary standards. 

Alternative fee models that are gaining popularity include:

• Flat fee: A fixed amount for defined services (e.g. $2,000 per year)

• Subscription: Monthly payments for ongoing support (e.g. $150 per month)

• Hourly rate: Charges based on time spent (e.g. $150-$400 per hour)

• AUM (Assets Under Management): A percentage of investment assets (e.g.. 1% annually)

• Hybrid: A mix of different fee types based on services provided

The one thing these alternative fee structures have in common is greater fee transparency. Just in the past year, over 60% of firms have updated their pricing structures for more transparency, according to a study from CPA.com, BILL, and Hinge Research Institute..

Younger clients, in particular, are more likely to ask questions about fees and compare options across firms. But across all age groups, transparent models build trust between clients and advisors. 

Transitioning to new models often happens gradually, giving firms time to update processes and agreements. Clear communication is essential — clients should understand exactly what they’re paying for and why.

Navigating regulatory and compliance changes 

Regulatory expectations continue to evolve. Updates to fiduciary standards clarify when advisors must act in a client’s best interest. The SEC and Department of Labor have issued new guidance on fee disclosures and conflicts of interest.

Data privacy laws have also expanded, requiring stricter consent protocols, encryption, and retention policies. Firms must demonstrate how they protect sensitive information.

AI introduces additional compliance challenges: If an algorithm recommends an investment, regulators may ask how the decision was made and whether it meets the same standards as human advice.

Key practices financial advisors can adopt to stay compliant:

• Use software to track advisor actions and client communications

• Conduct regular internal audits

• Train teams on new regulations

• Maintain detailed process documentation

Staying proactive on compliance not only reduces risk but positions your firm as a trusted partner in an increasingly regulated environment.

Overcoming talent shortages and scaling your practice

The financial advisory industry faces a talent shortage as experienced advisors retire and fewer new professionals enter the field. Over 30% of financial advisors are expected to retire in the next decade, while the number of new certified planners isn't keeping pace.

This shortage affects succession planning, the process of preparing new leaders to take over when current advisors leave. Without a clear plan, firms risk losing client relationships and operational continuity.

Technology can help bridge the gap by automating routine tasks and streamlining workflows. 

When evaluating new tools, financial advisors should consider:

• Compatibility with existing systems

• Ease of use and training requirements

• Security and compliance standards

• ROI based on time saved, errors reduced, and client satisfaction

Once a new tech platform has been adopted, firms should measure its efficiency and return on investment by tracking time saved, error reduction and client satisfaction scores.

Meanwhile, firm culture plays a major role in retaining top talent. 

Elements that support retention include:

• Clear communication and transparency

• Recognition 

• Flexible work arrangements

• Opportunities for collaboration

• Work-life balance

Investing in technology and culture enables firms to grow sustainably. 

Strategic takeaways for adaptable advisors

The trends reshaping financial advice in 2025 are interconnected, and the firms that adapt quickly will have a competitive edge.

With all these new tools, client expectations, and regulatory considerations, what should advisors do to take the shifting financial planning landscape as an opportunity?

Priority actions to consider:

• Integrate AI tools to automate tasks (3–6 months)

• Expand ESG capabilities (6–9 months)

• Update fee structures for transparency (6–12 months)

• Implement secure, mobile-friendly client portals (3–6 months)

• Develop digital onboarding for younger clients (6–9 months)

These actions represent a shift toward more responsive, data-driven, and inclusive financial planning that aligns with the future of financial advice.

For advisors looking to simplify retirement plan offerings for business-owner clients, Human Interest provides tools that support affordable retirement planning and compliance automation. Get started here.

The information provided on this page does not, and is not intended to constitute legal or financial advice and is for general informational purposes only. The content is provided "as-is"; no representations are made that the content is error free.