Succession plans are only becoming more important as the advisor population ages, according to George Hartman, co-founder and managing partner, Elite Advisors Canada Inc. in Toronto. Yet, few are actually starting the process because they remain stuck in the “Terrible Toos.”

Speaking at the 12th annual Institute of Advanced Financial Planners (IAFP) Symposium in Calgary on Monday, Hartman said only 10% of financial advisors have a written plan and only 40% have even given the idea of succession some kind of thought.

“It’s a big issue for our industry,” said Hartman. “It’s an issue in terms of who is coming up and how we will replace the knowledge, the expertise, the wisdom that’s embodied in [financial advisors].

According to Hartman, most advisors put off succession planning because they are stuck in the “Terrible Toos.” For example, advisors will give the excuse that they are too busy, or it’s too soon to make a succession plan and they are simply too attached to their business.

As well, advisors often put off talking to their team members and clients about their retirement because they are afraid they will get a negative reaction. However, Hartman said that clients and staff are in fact hoping advisors will start the conversation.

“If you are not already having these conversations with your clients about your eventual successor or transition plan, they are taking amongst themselves and they are concerned,” he said. “They want to be well taken care of and [to be sure] that the plans that you worked on together will be implemented and executed over a long period of time.”

In addition to putting their clients’ minds at ease, Hartman said advisors should start the succession planning process so as to take control of their own retirements. The largest asset advisors have is likely their business, said Hartman and it is probably their retirement nest egg. As such, creating a succession plan will allow advisors to be the ones in control of their exit or transition into retirement.

As well, creating a proper succession plan for your business will ensure your legacy as a financial advisor. “The decisions you make around succession after you are gone will be what people remember,” he said. “So, if you really want to stand out and be remembered for all the good work that you did that succession plan has to be [in place].”