The financial planning landscape has transformed considerably in the post-pandemic era. The latest Kitces Study on “How Financial Planners Actually Do Financial Planning,” drawing insights from over 600 advisors, reveals fundamental shifts in how we serve clients and deliver value.
While some changes were accelerated by the pandemic’s disruption, others represent surprising reversals of long-held industry practices. Below, we identify the four key trends that are challenging traditional assumptions about client service delivery and value creation—trends that could reshape how you position your practice for the future.
1. Virtual meetings are here to stay (but so are in-person meetings)
The pandemic fundamentally altered how we interact with clients, and some changes appear permanent. Before the pandemic, in-person meetings were the norm. Video calls were pretty uncommon.
According to the study, by 2022 the percentage of teams holding initial planning meetings in the office plummeted to just 28%. In contrast, 26% of teams began holding all their meetings via video calls, while 32% used video calls on a case-by-case basis, likely reflecting client comfort levels.
The effectiveness of virtual meetings is evidenced by the fact that teams using video calls have maintained the same level of client service hours and touchpoints as those meeting in person, with the typical advisor having 16 client touchpoints per year regardless of meeting format.
However, there is good news for those that are strong supporters of the in-person return. In 2024, the share of advisors who reported primarily relying on in-person meetings partially rebounded to 49%, while the share of advisors primarily relying on video calls also ticked up to 38%.
As a result, the proportion of teams taking a hybrid approach declined, indicating a shift toward more defined meeting preferences rather than a blend of both.
Pro tip: Whether you prefer in-person meetings or virtual, it is clear that virtual meetings have become more normalized in the industry and likely won’t be disappearing completely. While the shift in meeting formats has changed how we connect with clients, an equally important transformation is happening in the services we deliver to clients and the depth of services that clients are expecting. In short, do not replace meaningful contact with clients with Zoom meetings and less thoughtful services.
2. Financial plans are becoming more focused
One of the most striking findings is the reversal of “scope creep” in financial planning. After years of expansion, we’re seeing a return to core services.
The study reveals that advisors covering more components aren’t automatically more productive. In fact, between 2022 and 2024, the share of advisors including 13+ components dropped from 54% to 44%, suggesting that advisors found that simpler, more focused plans can actually deliver better outcomes for clients without needing to include every possible planning component.
Areas where advisors have scaled back include property and casualty insurance, credit card debt management, and disability insurance. Instead, advisors are prioritizing investment strategy, tax planning, and retirement planning—the areas clients perceive as most valuable.
Teams appear to have recognized that they overextended themselves and are focusing on delivering value through their core offerings.
The study also suggests that this shift is likely attributable to improvements in the functionality of comprehensive planning tools, which now address areas that previously required specialized software. As a result, advisors don’t need to stretch themselves thin by offering additional one-off services that require specialized tools. Instead, they can focus on delivering high-value insights within a streamlined, comprehensive framework.
However, these findings from the study seem to contradict other recent studies that show that top growing firms are actually adding additional services. The Charles Schwab RIA Benchmarking Study indicates that firms are expanding the scope of their services in order to protect their fees and retain clients.
Our anecdotal experience is consistent with the Schwab survey, as the proliferation of niche software is enabling advisors to dive into niche areas that were previously too difficult to address in a thoughtful and scalable manner.
While advisors are narrowing their focus, this shift appears to be improving client outcomes rather than limiting them. By streamlining services, advisors can dedicate more time to in-depth analysis and personalized recommendations, potentially leading to better financial results and stronger client relationships.
Pro tip: Think strategically and deeply about which services your clients value most. Don’t be tempted into offering low-value services. And review the next section in conjunction with this section, which may explain why plans are becoming less comprehensive.
3. The rise of ‘collaborative’ planning models
The shift toward collaborative planning, where the advisor is building or modifying the financial plan with their client in real time, represents perhaps the most significant evolution in service delivery.
In 2020, only 33% of advisors used a collaborative approach, but by 2024, that number surpassed 50%. In fact, advisors using real-time financial planning software to update plans on-screen with clients reported greater client engagement and retention. However, this growth has largely come at the expense of the traditional comprehensive planning model which has fallen to less than 20% adoption.
This may be why we see less topics covered, as discussed in the previous section. The study demonstrates that the rise in collaborative planning (growing from one-in-three advisors in 2020 to over one-in-two today) has contributed to plans becoming more focused, as advisors breaking planning into smaller, more manageable pieces over time naturally reduces the pressure to cram every possible component into a single comprehensive plan deliverable.
Collaborative planning promotes better engagement by allowing clients to actively participate in real-time plan updates and see immediate impacts of different scenarios, rather than being passive recipients of a pre-made plan. Additionally, breaking planning into smaller, more manageable pieces over time makes the process more digestible for clients while creating natural touchpoints for ongoing advisor-client interaction. And it has the added benefit of creating a more sustainable workflow for advisors.
Be careful to consider the drawbacks of focusing too much on the engagement aspect at the expense of building comprehensive plans. Perhaps the solution is to break out pieces of the plan and address other items through the year, as we do with our annual service calendar.
Pro tip: While service delivery and planning approaches evolve, a critical question remains: Are advisors becoming less comprehensive in their approach so as to increase client engagement by being more “collaborative?”
4. Consider your pricing structure
The study reveals some concerning trends in pricing models and profitability.
Particularly, the research shows that teams earning revenue through planning fees have implied hourly rates of less than $200/hour for their client work, compared to $558 for advisors primarily relying on AUM fees, despite hourly advisors serving clients with higher average net worth ($2.85M versus $2M), highlighting a significant disparity that isn’t explained by client affluence.
This disparity exists despite the number of years in business and serving similarly affluent clients.
The study found that AUM fees, while dominant among 86% of firms, present their own challenges. It concluded, based on the responses, that many advisors undermine their pricing structure in three key ways:
- First, there’s a widespread lack of AUM “minimum” enforcement. The study found that over a third of firms have no AUM minimums at all, and of those that do have minimums, the enforcement is remarkably weak—71% waive them occasionally and 19% waive them regularly, with only 11% strictly enforcing their stated minimums. This widespread flexibility in minimum enforcement particularly hurts firms serving less-affluent clients, where the cost of service can exceed the revenue generated.
- Second, fee structures often work against profitability. Advisors using graduated fee schedules typically charge 10–15 basis points less than those using cliff schedules—a counterintuitive finding given that cliff structures apply discounted rates across entire portfolios. This suggests many advisors are over-discounting at higher asset tiers.
- Third, and perhaps most telling, is how advisors handle planning fees. Kitces found that firms that bundle planning into their AUM fees charge roughly the same as those offering planning as a separate service. This means bundled-fee advisors are essentially giving away their planning services for free. The solution? Either raise your minimum, raise your AUM fees to reflect the true value of comprehensive service or implement separate planning fees.
This pricing hesitancy reflects a broader challenge in the industry: advisors’ reluctance to charge what their services are worth, even when market data suggests clients are willing to pay more.
Pro tip: Review your pricing structure against your earnings yield (revenue: AUM being managed), service offerings, service matrix and segmentation.
Looking ahead…
The financial planning profession is continuously evolving and the most successful firms will be those that continue to deliver an exceptional and personalized client experience at an appropriate fee.
The firms that thrive won’t just react to these changes—they’ll use them as catalysts to build stronger, more profitable practices. Take time this quarter to evaluate where your firm stands on each trend and develop an action plan to address any gaps.
Remember: The goal isn’t just adaptation for adaptation’s sake. It’s about building a more profitable, sustainable practice that delivers exceptional client value while ensuring your firm captures its fair share of that value.