2014 Salary Survey
Exchange Street Director Andy Taylor outlines recent salary survey results for financial planning professionals
Recruitment and training consultancy BWD have recently revealed the results of a salary survey they have undertaken over the past two years. Surveying 520 individuals from a range of backgrounds (IFAs/financial planning firms, banks, life companies, providers and employee benefit practices) the results make interesting reading.
The highest earners by some way were broker consultants, averaging £87,404 in total earnings for 2013, followed by employee benefit consultants (EBCs) who averaged £67,510 for their 2013 earnings. Interestingly salaries for broker consultants fell from 2013 to 2014 (£51,740 to £51,051), whilst salaries for EBCs rose from £50,018 to £51,051, although they still remain lower than pre-RDR levels.
It seems that existing broker consultants have benefited for two main reasons. Firstly the number of broker consultants has fallen (which obviously was not good news for some) and secondly providers are asking them to focus increasingly on higher producing advisory firms.
Financial Advisers saw their average salary increase from £49,052 in 2013 to £50,898 in 2014 with employed consultants slightly ahead of their self-employed counterparts in relation to 2013 total earnings; £60,441 against £56,327. Of particular note is that the level of bonus advisers receive does not compare with their broker consultant and EBC peers, most likely due to the impact of the Retail Distribution Review on adviser earnings. In fact bonuses over the two years for employed advisers fell in the region of a whopping 30% from 2012 to 2013. Self-employed advisers fared a little better, with their earnings down a mere 6.9% in comparison over the same period.
In relation to non-sales roles the average salary of a paraplanner rose from £28,429 in 2013 to £29,791 in 2014, whilst sales support staff saw a similar rise from £25,661 to £26,848. Compliance professionals though saw a slight drop from £40,767 in 2013 to £40,423 in 2014. Further information about paraplanners’ earnings is found later in the article.
Other interesting points were:
- Directly authorised firms have higher earnings per adviser then network members (£61,243 versus £48,741 in 2013)
- Independent advisers earn more than 4.4% more than their restricted counterparts
- But there has been a reduction in the number of advisers who plan to offer independent advice in the future, from 88% pre-RDR to 66%
- Chartered and certified advisers earn up to 27% more than their Level 4 counterparts
Unfortunately the general pay disparity between men and women is clearly demonstrated within financial planning, with male advisers earning over £13,000 per annum more than female ones. The number of female advisers dropped post-RDR from 12% to 10% of the overall advisory population, although they still account for 68% of paraplanners and 71% of administrators.
The Institute of Financial Planning have also published the results of their paraplanning survey.
72% of paraplanners earn between £20,000 and £39,999, although 14% earn from £40,000 and beyond, with 3% earning over £50,000 per annum. 85% of paraplanners work in-house, with 6% now self-employed and 9% working for outsourcing companies.
23% of paraplanners want to become advisers in the future, the same percentage of paraplanners who are currently CF30 authorised. 61% are Level 4 qualified, with the demand for such individuals far outstripping supply.
Their importance continues to grow, with 82% of firms using a paraplanner for some or all of the research ahead of recommendations, whilst over a third leave it completely to their paraplanners. Just 10% of advisers do it themselves, a shrinking number.
For more information on what this figures mean to you please contact the team at Exchange Street on 0161 973 6900 or email@example.com.