A new study by the CFP Board suggests that compared to their non-certified counterparts, financial planners who've earned the CFP mark tend to be more successful and satisfied on several counts.
The 2024 Compensation Study, which draws from a survey of more than 1,400 financial planners, indicates those holding CFP certification tend to earn more and report higher career satisfaction compared to non-CFP planners.
The highlights of the study revealed that CFP professionals earn 10 percent more than other financial planners, even when accounting for factors such as job experience and firm size. The median total compensation for all financial planners in 2023 was $192,000, with a probability of even more money for those who've got longer professional records and have supervisory roles.
CFP professionals also expressed significant job satisfaction, with 85 percent reporting high or very high levels of personal fulfillment in their roles. Stability, work-life balance, career advancement, and compensation were rated positively by a majority of respondents.
“It’s no surprise that CFP professionals are extremely happy in their careers,” CFP Board CEO Kevin Keller said in a statement Thursday. “The findings in the 2024 Compensation Study show that a career in financial planning is quite possibly the best job ever.”
Benefits were also robust, with most CFP professionals enjoying health, dental, and disability insurance, as well as access to retirement plans. Around 98 percent of respondents reported having defined contribution plans, with others benefiting from profit sharing, stock options, and pension plans.
In terms of work-life balance, CFP professionals reported an average of 21 days of paid time off per year, and 27 percent having access to unlimited PTO. On average, these professionals worked 44 hours per week.
Across all financial planners, experienced professionals with over 20 years in the industry reported a median total compensation of $325,000 in 2023. Those who've had between 11 and 20 years' experience reported $225,000 in compensation, while those with 5 to 10 years' experience reportedly earned a median rate of $150,000.
From a supervisory lens, planners managing six or more staff earned $400,000, while those overseeing one to five people were paid $231,000.
Financial planners' compensation also varied across channels, with bank-employed financial planners earning $200,000 and wirehouse-based planners reporting $230,500 in median compensation. Those at IBDs, RIAs, and hybrid RIAs reportedly earned $225,000, $161,700, and $215,000 in median pay, respectively.
Counting all financial planning professionals, the survey also found compensation outpaced inflation, clocking in at 10 percent over the year from 2022 to 2023.
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