Over the next decade, the job outlook for financial advisors looks extremely promising, with abundant opportunities nationwide. The Bureau of Labor Statistics predicts employment of financial advisors will expand much faster than the average occupation. Growth is concentrated in cities with strong financial services sectors, but jobs can be found almost anywhere. An aging population seeking help with retirement planning helps fuel demand. Most advisors earn a median salary of $95,390, though pay can surpass $200,000. While automation poses a potential threat, individuals are still likely to seek human helpers for complex planning needs.
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Financial Advisor Employment Expansion
The Bureau of Labor Statistics has projected that 42,000 new financial advisor jobs would be added between 2022 and 2032. That will increase the total number of positions 13% over the decade from 227,600 in 2022 to 369,600 in 2032. That growth pace is about four times faster than the 3% employment increase forecast across all occupations for the same period.
Employment opportunities for both new and established financial advisors will be even richer than this rapid growth suggests. The BLS predicts around 25,600 financial advisor job openings will become available each year on average. Many of those abundant openings are expected because large numbers of current financial advisors will retire and need to be replaced.
Financial Advisor Demand Drivers
Several factors are causing the rapid expansion of financial advisor jobs. Most significantly, as the baby boomer generation ages, more people will seek professional financial planning services to help them manage retirement.
The decline of traditional pension plans is another driver. Due to this trend, individuals increasingly need to make their own choices about 401(k) plans, IRAs and other investments to fund retirement. That creates demand for financial advisors.
Where the Financial Advisor Jobs Are
Financial advisors work everywhere in all states and cities, including small towns and rural areas. However, some places have more jobs than others.
At the state level, California employs the most financial advisors, with roughly 32,670 jobs. New York and Florida rank next, with 26,800 and 24,640 financial advisor jobs, respectively.
Financial advisors make up the highest share of all jobs in New York and North Carolina. In these states, 2.94 of each 100,000 jobs are for financial advisors.
In terms of metro areas, the New York-Newark metro area also leads among metro regions, with 29,000 financial advisor jobs. That is well ahead of second-place Los Angeles, with 13,050 jobs.
What Financial Advisors Do
Financial advisor work activities include meeting with clients and providing advice to help them manage finances and meet goals. Duties typically include:
- Assessing client assets, liabilities, taxes and objectives
- Creating financial plans and investment strategies
- Recommend investments like stocks, bonds and insurance
- Monitoring portfolio performance and adjusting plans
- Educating clients on financial topics
Advisors focus on areas like taxes, estate planning, saving for education and retirement planning. Many buy and sell securities on the client’s behalf.
Financial Advisor Earnings
The median pay for financial advisors nationwide was $99,580 last year, with the top 10% of advisors in the best-paying markets earning more than $239,200.
Pay also varies by job title and sector. Securities and investment advisors make over $150,000 on average.
Financial Advisor Job Uncertainties
As with any forecast, the future outlook for financial advisors is not set in stone. One uncertainty is the rise of robo-advisors, which are automated investment platforms. However, most experts expect individuals will still seek personalized advice from human advisors for complex planning.
The job may also become more difficult, thanks to the increasingly complex landscape including proliferating varieties of different financial services and investment products. Taxes are also constantly changing so advisors must stay on top of new developments there. Financial advisors are also heavily regulated and the possibility of increased oversight or stiffer licensing requirements also exists.
If you’re a financial advisor then you shouldn’t have to worry about all the uncertainties related to running your firm, such as marketing. SmartAsset’s Advisor Marketing Platform (AMP) offers financial advisors services like client lead generation, automated marketing and more. Learn about SmartAsset AMP today.
Bottom Line
With an aging population and a shift to individual retirement accounts, financial advisor jobs are rapidly expanding. The profession offers a robust job outlook over the next decade. Financial rewards are also appealing, and the work can be done from nearly any location. Individuals seeking help on financial topics like retirement planning will likely continue turning to advisors, although technology, regulation, tax law changes and the increasing intricacy of the financial world may pose challenges.
Tips for Growing Your Financial Advisor Business
- A financial advisor’s job can be hard enough without having to worry about every marketing detail. SmartAsset AMP (Advisor Marketing Platform) is a holistic marketing service financial advisors can use for client lead generation and automated marketing. Sign up for a free demo to explore how SmartAsset AMP can help you expand your practice’s marketing operation. Get started today.
- You can also leverage social media to help expand your services to new clients. Digital marketing is a popular tool for connecting with your target audience and getting more eyes on your business.
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