By Chelsea Summer, Executive Director at INSIDE Public Accounting
In the accounting profession, the leadership handoff is no longer a distant concern, it’s happening right now.
Chelsea Summers
The 2025 Practice Management Report shows that 5% of equity partners retired in 2024 (up from 3.4% the year before), and another 4.6% are expected to retire this year. That translates to nearly 400 partners stepping away, while 591 new partners were admitted in the same period.
The pipeline is shifting — but are firms prepared?
The Retirement Wave
- 31% of managing partners are more than 60 years old
- 12% are above 65
- 8% are at least 67
Without a clear plan, transitions at this scale can disrupt continuity, unsettle clients and create uncertainty within firms.
The Generational Shift
The average partner age has steadily declined, from 53.0 in 2020 to 51.6 in 2025. One-third of firms now report an average partner age under 50. This younger wave of leaders may bring new priorities — from technology adoption to evolving client expectations — that will shape the future of the profession.
Succession Planning Gaps
Despite the urgency, only 55% of firms have a written succession plan for their MP/CEO. Larger firms are more proactive (70%), but smaller firms are at risk of falling behind.
What firms should be doing now:
- Create and communicate formal succession plans
- Develop leadership training for rising partners
- Balance the wisdom of senior leaders with the vision of new generations
- Build confidence with staff and clients by showing continuity is secure
The leadership pipeline is evolving whether firms are ready or not. If your firm isn’t actively planning for succession, you’re not standing still, you’re falling behind.
How is your firm approaching succession and preparing the next generation of leaders?
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