I read with interest a recent report that revealed planner salaries post Royal Commission, and I have to say, it got me thinking. The fact that a senior financial planner with over 10 years’ experience could expect between $120,000 and $160,000 was a surprise to me. Why? Because the obvious legal and compliance risk associated with being a senior financial planner is so high, that I have to wonder is $120k even worth it.
According to the Financial Adviser Salary Guide by Kaizen Recruitment, this is the going rate. Now, I am well aware that this kind of salary is at the upper end of the scale for the average Australian. But I have to say, compared to fund managers and even accountants, the scrutiny, compliance and general mistrust advisers are having to go through, it feels to me that this isn't enough.
My father used to work in the coal mines as a machinist where I grew up in Gunnedah. He frequently used to attract ‘danger pay’ for some of the jobs he had to do. While I am not suggesting that advisers are in physical danger with the jobs they are doing, the pressure, responsibility and legal burden leads me to believe that this is a profession that needs to pay more in the future to attract people to it.
Most advisers I know are feeling the pressure every day. Even if they have the right model in place, eradicated commissions some years ago and have successful practices. The reputation damage alone has put enormous strain on. The fact that finding new clients in a market that has been told not to trust advisers is another.
In my view, financial advice is one of the most important professions for Australia moving forward. Our ageing population, huge strain on a pension system that is unsustainable in the future and the fact that up to 80% of generation X are likely to fall short of a comfortable retirement means that the financial advisers are one of the few professions with the power and knowledge to help people prepare for the economic tsunami ahead.
Surely that’s worth more from a salary perspective.
Until next time,
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20 May, 2019
The standards body has offered further information and registration details for the upcoming adviser exam.
16 May, 2019