Middle-Income Households Slowly Gain Traction with Advisors, Providers
U.S. households are projected to control over $102 trillion in financial assets as of year-end 2025, marking a 12% increase compared to 2024, finds a new report from Cerulli Associates.
The findings note that while ultra-high-net-worth households will likely represent the bulk of assets, middle-income households are slowly gaining ground among providers and advisors as their wealth grows. Even as financial assets for middle-market and mass-affluent households fell from 43% in 2013 to 24% in 2025, those with $100,000 to $2 million in assets have experienced an increase in wealth from $14 trillion to $25 trillion in the same period.
As this group, which comprises of 46.9 million households, tends to skew younger, many do not receive guidance from financial professionals. That could all change however, as more advisors and providers look to connect with prospects earlier in their careers.
“Traditionally, wealth management firms have preferred to begin client relationships only after prospects have reached addressable asset minimums ranging from $250,000 to more than $1 million,” says Scott Smith, senior director at Cerulli. “Though this strategy has proven effective, it faces increased pressure as competitors seek additional options to connect with prospects earlier in the financial lifecycle.”
According to Cerulli, openings for providers to work with prospects falls abruptly as they age, from 44% for prospects under age 30 to 24% for those in their 50s.
A segment of affluent respondents are also likelier to stick with a financial professional who can help them across a wide range of services. Thirty-two percent said they would prefer to use the same provider for investing and banking needs.
“Future prospects are likely to have several financial services provider relationships, including banking, retirement plans, insurance, mortgages, and tax preparation, before meeting wealth management minimum asset-under-management benchmarks,” said Smith. “To optimize long-term client acquisition, providers will need to engage with prospects earlier or find more effective strategies to displace incumbents. As mass-affluent households continue to accumulate wealth, providers must define for clients and prospects what a premium experience entails as a starting point, rather than hoping a minimum viable offer will be perceived as offering differentiated value.”
Amanda Umpierrez is the Managing Editor of 401(k) Specialist magazine. She is a financial services reporter with nearly a decade of experience and a passion for telling stories and reporting news. She is originally from Queens, New York, but now resides in Denver, Colorado.