Succession planning is a concern for retiring US financial advisers, who worry about transferring clients to inexperienced practitioners.

In a new report on the US financial advice market, Cerulli Associates says transferring clients is the primary concern of advisers undertaking succession planning.

The research house’s survey of more than 6000 advisers shows valuing practices and finding buyers rank second and third.

About 20% of senior advisers consider new advisers’ limited financial planning expertise a major challenge when grooming them for succession.

Some 64% say the length of time required to learn the business is a challenge.

Among independent advisers who plan to retire in the next five years, 80% have a written succession plan in place or plan to produce one in the next year.

The figure falls to 54% among employee advisers.

Retirements will cause US adviser numbers to drop from 2019, but until then Cerulli predicts modest growth.

Last year the number grew for the first time in almost a decade, up 1.1% to 308,937 at December 31. This followed a 12.7% fall in numbers from 2005-13.

“Many positive developments led to the headcount growth last year,” Cerulli director Kenton Shirk said. “From the adviser perspective, there is a heavier focus on teaming and on-boarding rookie advisers into multi-adviser practices.”

This has allowed experienced advisers to focus more on improving client bases and succession planning.

Cerulli expects this momentum to continue for the next three years, but it warns advice channels still face headwinds.

“While all of this recent growth has provided some positive momentum, the industry is still not in the clear,” Mr Shirk said.