A study by the Certified Financial Planner Board of Standards found high levels of income and career satisfaction among CFP® professionals, reports InvestmentNews.
The board commissioned Industry Insights to collect compensation data from financial advisors across the United States for its 2023 Compensation Study, and generated nearly 1,000 responses. The study addresses many areas of compensation including salary, job satisfaction and benefits.
It found that while the median 2022 total compensation for financial planners was $198,500, CFP® professionals earn 12% more than other financial planners who are not certified.
When it came to career satisfaction among CFP® professionals, 84% of those surveyed reported a high to very high sense of personal fulfillment. Among the factors rated as good or excellent, 88% cited the stability of their job, followed work/life balance (80%), compensation (71%) and career advancement (65%). 89% of the CFP® professionals who responded said they plan to stay with their current company over the next two years. Among those planning to leave their current companies, 75% plan to stay in the financial planning profession.
“The survey findings underscore the benefits of earning CFP® certification and a career in financial planning,” said CFP Board CEO Kevin R. Keller, CAE. “At CFP Board, we are committed to certifying competent, ethical financial planners. CFP® certification is good for financial planners and for the public they serve.”
Annual compensation for financial planners was found to be growing steadily from 2019 through 2022, with a 7% to 9% increase each year. Those with over 20 years of experience in financial planning had a median total compensation of $250,000 in 2022. Certified financial planners who supervise six or more staff reported a median total compensation of $385,000 in 2022.
The board noted that CFP® professionals also receive important benefits, including health, dental, life and disability insurance, retirement and pension plans, and professional development opportunities.
Furthermore, the study emphasized work/life balance, with CFP® professionals working away from the office an average of one day a week, with 20% working remotely four days or more.
The CFP Board said the results would be used to highlight the benefits of the profession for students and people considering a career change.
“Here’s what coming into financial planning means,” said CFP Board Chair Matthew Boersen. “You get all these altruistic benefits and the financial benefits. We now have data to back that [and] a really robust study that just gives much more power to some of the stories that we’re trying to tell.”
Lewitas Hyman PC represents advisors, brokers and other financial professional in all matters involving the CFP Board, including CFP Board investigations. Headquartered in Chicago, our securities attorneys represent clients nationwide. For more information relating to CFP Board investigations and discipline or other matters, contact Lewitas Hyman at (888) 655-6002 or through our online contact form for a free consultation
