Wealth management firms are confronting intensifying pressure to deliver broader, value-added services to high-net-worth clients while simultaneously reducing fees.
According to new research from Cerulli Associates, the prevailing trend of fee compression continues to accelerate, forcing advisors to evolve their service models and pricing structures to remain competitive—particularly among clients with $5 million or more in investible assets.
Cerulli’s latest survey of financial advisors reveals that the traditional “1% of AUM” fee standard is increasingly being replaced with more nuanced and lower pricing tiers for affluent investors. By 2026, 83% of advisors anticipate charging clients with at least $5 million in assets under management (AUM) less than 1%, with the average rate for clients at the $10 million level falling to just 0.66%.
“For advisors targeting the high-net-worth segment, the expectation now is clear: deliver more, charge less,” said Kevin Lyons, senior analyst at Cerulli. “These clients are looking well beyond portfolio construction. They want integrated wealth planning, proactive tax strategy, estate planning coordination, and guidance on complex liquidity events.”
This demand for more holistic wealth management solutions comes as the industry undergoes a significant generational shift. The next wave of clients—many of them business owners, tech entrepreneurs, or inheritors of substantial family wealth—are evaluating advisors not only on performance and fees but also on depth of service. Cerulli notes that a direct correlation exists between the breadth of an advisor’s service offering and the average client AUM—a signal that delivering greater value across disciplines drives meaningful client growth.
To adapt, many RIAs and independent advisors are expanding their service ecosystem. Some are building in-house capabilities around financial planning, tax optimization, and philanthropic advisory. Others are developing networks of vetted third-party professionals, including estate attorneys, business valuation experts, and private bankers, to meet clients’ broader needs through coordinated referrals.
Fee structures, meanwhile, are becoming more customized, especially at the upper tiers of wealth. While advisors remain committed to maintaining premium fees for clients with modest portfolios—projecting average management fees of 1.25% for clients with $100,000 in investible assets—those fees drop sharply as asset levels rise. This tiered approach reflects both competitive pressures and the economies of scale inherent in managing larger portfolios.
Cerulli’s research also reinforces the industry’s ongoing pivot away from commission-based models. Asset-based fees remain dominant, though advisors are experimenting with alternative pricing formats. Despite a growing dialogue around flat-fee and subscription-based models, Cerulli suggests these approaches remain a minority, used selectively rather than as firmwide standards.
“The challenge is twofold,” Lyons noted. “Advisors must clearly articulate the value of their services while maintaining fee discipline, especially in the face of margin compression. Those that can define a repeatable planning process, deliver a superior client experience, and demonstrate flexibility in pricing will be best positioned to win the business of discerning, high-net-worth households.”
For wealth advisors, this research underscores a fundamental market reality: comprehensive advice is no longer a differentiator—it’s a baseline expectation. As high-net-worth individuals increasingly expect their advisor to serve as a central figure in all aspects of their financial lives, from charitable giving to intergenerational transfers, the ability to integrate services into a cohesive client experience has become a strategic imperative.
Cerulli also warns that the commoditization of investment management is diminishing its standalone value proposition. With financial planning software, model portfolios, and AI-driven optimization tools readily available, clients view investment returns as table stakes rather than justification for premium fees. Instead, they are assessing advisors on how well they deliver strategic insights, solve complex problems, and coordinate across the financial spectrum.
This evolution comes at a time when competition for affluent clients is intensifying. Wirehouses, RIAs, and digital-first platforms are all vying for wallet share among the ultra-affluent, often by touting lower fees and enhanced digital interfaces. In this environment, Cerulli recommends that advisors differentiate themselves not on pricing alone, but by demonstrating measurable value across all client touchpoints.
Among the most sought-after services: advanced tax planning, business succession consulting, charitable giving strategies, estate and trust design, and cross-border financial coordination for globally mobile families. Advisors who can efficiently deliver or coordinate these offerings are better positioned to win—and retain—client relationships that extend across generations.
Additionally, Cerulli emphasizes the growing importance of client segmentation. As fee compression reshapes the economics of advisory practices, firms are becoming more deliberate about who they serve and how. Many are narrowing their focus to specific niches—such as physicians, corporate executives, or entrepreneurs—where their service model can deliver outsized value relative to cost.
This strategic clarity also enables more thoughtful pricing. Advisors targeting niche markets often command higher effective fees, not because they manage portfolios differently, but because they offer specialized guidance tailored to unique client needs. Cerulli expects this trend to continue as firms move away from generalized planning and toward hyper-personalized service ecosystems.
For RIAs and independent advisors, the key takeaway from Cerulli’s findings is the imperative to rebalance cost and value in a transparent, scalable way. As client expectations increase, so too must the advisor’s capacity to deliver high-impact outcomes across disciplines without compromising profitability.
In the face of shrinking margins, efficiency will be critical. Leveraging technology, outsourcing non-core functions, and creating modular service tiers are all viable strategies to maintain firm health while enhancing client experience. Ultimately, the firms that thrive in this evolving environment will be those that treat fee pressure not as a threat, but as a catalyst to sharpen their competitive edge.
Cerulli concludes that the most successful advisors will be those who embrace adaptability—not just in pricing, but in process, partnership, and client engagement. “Those who lead with planning, deliver with precision, and price with transparency will be the ones who emerge stronger,” Lyons said.
As wealth management continues to evolve, advisors are being called to deliver more comprehensive services at lower costs, all while deepening client relationships and maintaining profitability. The future of advisory success hinges not just on the portfolios managed, but on the totality of the experience delivered—and the value clearly communicated at every stage of the client journey.
