More than four in five Financial Planners (84%) expect assets under management and advice to rise this year, according to a survey.

Over two thirds (70%) of 200 Financial Planners surveyed were optimistic about revenue growth for 2025.

Some 47% were confident and 23% very confident.

The findings are from the inaugural Financial Planning Growth Index from Saltus Partnership Programme and L.E.K. Consulting.

Larger firms were more optimistic about growth in assets this year when compared to their smaller counterparts.

Half (48%) of firms with assets under management of over £300m expected their assets under management to grow by at least 10%. One in ten (11%) larger firms expected growth of at least 20%.

Mid-sized firms still expected to see growth but expected this growth to be a more conservative at up to 10% year-on-year. One in five mid-sized firms said they expect growth above 10%.

Firms with £50m or less in assets under management were more cautious about their growth prospects. Just 44% expected growth of around 5%. A quarter (25%) of these smaller firms said they expected their assets under management to remain flat, or to see a decrease in AUM.

Organic growth (40%) and client referrals (32%) were the main drivers of expected AUM growth, followed by improved investment performance (26%), technology and automation (15%), partnerships (10%), and digital marketing or social media (6%).

Only 4% of the Financial Planners surveyed said they expected their business growth to come via acquisition. For larger firms 18% cited acquisitions as a key growth driver.

The top concern for Financial Planning firms for 2025 was compliance (29%), followed by political intervention (20%), rising operational costs (19%), economic uncertainty (14%) and talent acquisition (8%). Just 37% said they felt well prepared to meet these challenges, with half (49%) feeling moderately prepared.

Nick Heath, head of the Saltus partnership programme relationship team, said: “Senior leaders in the Financial Planning sector remain optimistic about the future despite a number of headwinds impacting their businesses. To deliver growth, firms must be adaptable in their approach and focus on streamlining operations, continuing to attract and develop talent and embed innovation to drive the best possible outcomes for clients.”

When asked about longer term prospects and concerns over the next three to five years, the evolving regulatory environment remains a major concern, especially for larger firms, with 21% identifying regulatory changes as likely to have the biggest impact on the industry. Other concerns cited include technological advancements including AI (18%) and a widening advice gap (16%).

• Saltus surveyed 200 senior Financial Planners between October and November.