First of all, the profession is growing, not dying. According to the Bureau of Labor Statistics Occupational Outlook Handbook, employment of finance planners is expected to increase by 7% from 2018 to 2028. This is higher than the average for all occupations, which is only 5%.
According to the Bureau of Labor Statistics, the financial advisor industry is expected to grow by 17% through 2033. However, even with this expected growth, change is likely in 2025 and beyond.
The firm's latest study, “The Cerulli Report—U.S. Advisor Metrics 2023,” finds that over the next decade, 109,093 advisors, or 37.5% of the industry headcount, are set to retire—and will take 41.5% of the industry's total assets with them as a result.
Lack Of Fulfillment
They wanted to own their time, work in the markets they liked, and solve problems with people they valued. Unfortunately, most advisors are stuck in traditional financial planning and portfolio management firms that often don't align with their values or goals.
Advisors may quit if they feel that they've been wedged into a role that doesn't fit their skills, or that their firm doesn't encourage them to acquire new skills. It's frustrating, and once frustration sets in, it can be difficult to feel as if you're able to move ahead.
We surveyed over 500 UK adults who currently hold stock market-related investments to find out how the adviser shortage is affecting them. We discovered that one in five consumers (19%) have struggled to find an IFA, financial planner, or wealth manager in the past 10 years. The reasons varied.
The Bureau of Labor Statistics projects 12.8% employment growth for financial advisors between 2022 and 2032.
Undoubtedly large robo-advisors like Wealthfront and Betterment are working on similar solutions, and Harmsen has high hopes that the technology is already available and is only getting better. However, as of now, AI cannot replace the nuanced, comprehensive, and personalized advice human financial advisors provide.
Increased demand for financial advice
According to the data, more businesses are getting financial advice as accounts enquiries are up 122.7% between 5 July and 15 October 2024, compared to the same period in 2023.
Financial Advisor Employment Expansion
The Bureau of Labor Statistics has projected that 55,000 new financial advisor jobs would be added between 2023 and 2033. That will increase the total number of positions 17% over the decade from 321,000 in 2023 to 376,000 in 2033.
AI-powered apps are touted as a big part of the solution to providing affordable financial advice en masse, but winning people's trust is a key challenge.
If you have little experience of dealing with finances or you're confused about making a decision, it may be helpful to get professional financial advice. A financial adviser can help with things like: planning for your retirement. investing or saving money.
If you're wondering whether doom and gloom stories about financial advisors becoming obsolete, here's some reassurance: people will always need financial advice.
There are plenty of other specific reasons people don't reach out to financial advisors—fear, shame, ignorance, self-determination, bad experiences with advisors in the past, or generally good experiences with their DIY efforts—but we can lump virtually all of these reasons into this single category: The pain of ...
Vast majority of wealthy individuals have a financial advisor, with two thirds saying they need more than one to manage their affairs. A recent study from Bank of America Private Bank reveals a strong majority of the country's richest individuals have a financial advisor – and most even have a team in their corner.
Over the next decade, 109,093 advisors plan to retire, comprising 37.5% of industry headcount and 41.5% of total assets. Meanwhile, the rookie failure rate hovers around 72%.
Jobs that are most likely to be automated by 2030 include cashiers, telemarketers, data entry clerks, and customer service agents. Advances in AI's data analysis and decision-making capabilities could potentially affect even some white-collar jobs, such as legal assistants and financial advisors.
While AI technologies have the potential to enhance efficiency and accuracy in real estate transactions, they are unlikely to replace human agents entirely. Real estate transactions involve complex emotional and financial decisions that require human empathy, intuition, and negotiation skills.
A lot of failure within the financial advisor industry comes down to either not knowing or not practicing the fundamentals. For example, every financial advisor should prospect and follow up - that's a fundamental thing. However, when advisors don't prospect, they put themselves in danger of failing.
Most personal financial advisors work full time, and some work more than 40 hours per week. They also may go to meetings on evenings and weekends to meet with existing clients or to try to bring in new ones.
High earning potential
Some financial institutions pay their advisers a base salary and they can earn commission depending on what they do for their clients. Other advisers work independently and can work to build a larger client list to help them earn more money.
Training as a financial adviser offers more than just a secure and financially rewarding career. It gives you great sense of purpose and fulfilment as you make a meaningful impact on the lives of others. As an adviser, you help people and businesses take control of their financial wellbeing and achieve their goals.
The average age of a financial adviser in the U.S. is 56. As they start to retire, younger practitioners will need to step up. It's already happening. When shopping for an adviser, you may find many of them in their 20s and 30s.
The estimated total pay for a Financial Advisor is £49,002 per year, with an average salary of £38,966 per year. This number represents the median, which is the midpoint of the ranges from our proprietary Total Pay Estimate model and based on salaries collected from our users.