One-third of financial advisors already say they have“ firsthand experience” with losing a significant amount of assets via generational attrition, according to a recent survey by Natixis. But 46 % view it as an“ existential” threat, reasoning that more money could leave their firms in the future.

The research released last week by the global asset manager finds that advisors are reasonably successful when assets transfer between spouses, with 72 % of advisors retaining those assets. However, Natixis estimates that when assets move to the next generation, asset attrition increases and advisors keep the assets only about half the time.

And even that estimate may be optimistic. The Natixis research reveals that 55 % of next-generation inheritors plan to leave their benefactor’ s advisor.

But the most striking finding is that it is baby boomers who are the most likely to transfer assets after receiving an inheritance. Natixis says this suggests that advisors may be“ more vulnerable” to losing assets to intergenerational transfers than was previously thought.

Fully 66 % of boomers say they will leave their parents’ advisor. To a certain degree, this is understandable since most surviving parents of baby boomers are in their mid-80s or older and probably are invested conservatively. Many of their children, on the other hand, have been enthusiastic participants of the longest bull market in history.

In contrast, 52 % of Gen Xers and 50 % of millennials say they will change advisors. The numbers are also notable when viewed through a gender lens: Women are more likely to leave their benefactor’ s advisor, particularly younger women.

Natixis found that 55 % of female Gen Xers and 51 % of males that age would change advisors. For millennials, those figures are 53 % and 47 %, respectively.

— FA Staff

Annuities Boom As Insurance, Wealth And Retirement Converge

Continued from page 11 district court in Texas. Berkowitz noted that the regulations for determining who is a fiduciary now revert to a five-part test created by the Department of Labor in 1975( which include such requirements that the advisor must give the advice on a regular basis and according to mutual agreement).

“ We’ re back to the five-part test,” Berkowitz said.“ That’ s been the rule since 1975, and it will continue to be the rule going forward.” But he warned advisors not to misread the environment.“ This is not a‘ get out of jail free’ period,” he said.“ If you’ re a bad actor, regulators are coming.”

Instead, the annuities industry is pushing for modernization— not deregulation. That includes efforts to reduce ERISA litigation risk, expand annuities in 401( k) plans and enable electronic delivery of disclosures.

“ We need to make sure the regulatory framework keeps pace with how the business is actually executed today,” Berkowitz said.

Technology is also emerging as a critical piece of the annuities business to shrink transaction times. Replacement transactions that once took 30 to 60 days can now be completed in under 24 hours.

“ Our goal is to shift annuities from hardto-do-business to easier-to-do-business,” Berkowitz said. That simplification could unlock new distribution channels— especially among RIAs, who have historically been reluctant to use annuities.

Overall, industry leaders are calling for expanded insurance-overlay distribution, faster digital processing, clearer regulatory frameworks and new products tailored to advisor needs. There is also growing interest in integrating annuities into 401( k) plans— a move that could open trillions in assets.

— Tracey Longo

12 | FINANCIAL ADVISOR MAGAZINE | MAY / JUNE 2026 WWW. FA-MAG. COM