NextWealth Financial Advice Business Benchmarks Report 2025 - Report - Page 9
NextWealth Financial Advice Business Benchmarks Report / October 2025
Figure 4: With more than a third of the client base over 65, 昀椀rms need to plan for a sustainable business in the long term
Average distribution of age across 昀椀nancial advice 昀椀rms’ client base
Q What is the approximate age distribution of your 昀椀rm’s client base?
Client segmentation
We have tracked a quiet but important shift over the past 昀椀ve
years in how advisers view their client banks.
This year, while life stage remains the single most important
segmentation criterion (cited by 50% of small 昀椀rms and 31% of
large 昀椀rms), ‘need for ongoing advice’ has now overtaken client
asset level as the second-most important factor, a signi昀椀cant
change given 昀椀rms’ concerns about demonstrating the value of
ongoing advice for clients with simpler needs or lower balances.
Larger 昀椀rms, however, continue to lean on asset-based
segmentation. Conversely, sole traders are the most likely to
report that they have no common segmentation factor at all.
Segmentation doesn’t necessarily mean many different
propositions; it’s about recognising that different groups
experience the advice journey and outcomes differently
and designing one or two service models to re昀氀ect that. For
prac琀椀cal approaches, see our guide to segmenta琀椀on.
Figure 5: Ongoing advice needs jump ahead of wealth level as the second most common client segmentation factor
Segmentation factor
2025 rank
2024 rank
Change YoY
Life stage
1
1
-
Need for ongoing advice
2
3
+1
Client asset level
3
2
-1
Vulnerability
4
8
+4
Location
5
5
-
Contact frequency
6
9
+3
Profession
7
4
-3
Willingness to engage with the advice process
8
7
-1
Speci昀椀c advice requirements e.g. business ownership
9
10
+1
Level of investment knowledge/experience
10
6
-4
Communication preferences
11
12
+1
Gender
12
11
-1
Q Which of the following factors do you use to segment your client base?
9
