More than half, 53 percent, of financial advisors' clients are between 50 and 70 years old, according to research from global analytics firm Cerulli Associates.
"Advisors are finding it increasingly difficult to attract young investors," Kenton Shirk, associate director at Cerulli, said.
"The endless availability of online resources, as well as easy-to-use direct platforms is diminishing the need for advisors within the do-it-yourself generations."
Cerulli's "Advisor Metrics 2013: Understanding and Addressing a More Sophisticated Population" report focuses on advisor trends and consumer information, including market sizing, advisor product use and preferences, and advice delivery.
"eRIAs are emerging threats to advisors. They are able to deliver scalable offerings at extremely low costs," Shirk said.
"Advisors must understand that it will be nearly impossible to compete on price. To win clients in this market, advisors need to differentiate their offerings and deliver things that eRIAs cannot, such as sophisticated tax planning and long-term care advice."
Cerulli encourages advisors to branch out beyond offering only asset allocation and retirement advice to attract new clients. If advisors can offer or team with tax planning professionals, they will be able to offer tax and estate advice to clients, it says.
Long-term care decisions also impact the financial picture of families and should be considered a part of retirement planning, according to Cerulli.