CFP professionals report strong career satisfaction and receive higher earnings than financial professionals without CFP certification, according to the Certified Financial Planner Board of Standards' latest compensation study, released Wednesday.
The median 2024 total compensation for all financial planners is $185,000, according to the study. For their part, CFP professionals earn 13% more than financial planners who do not have CFP certification, even after accounting
for other factors such as years of experience, company size and job role.
This finding means that "the CFP marks are a very good career ROI for the cost, and more broadly means that consumers really are collectively 'rewarding' advisors with CFP marks over those who don't when it comes to who they choose to do business with," Michael Kitces, publisher of the Nerd's Eye View blog, said in a LinkedIn post.
"Of course, the caveat is that it doesn't mean the impact of getting the CFP marks is immediately (no, it doesn't make the phone start ringing with prospects), the effect occurs over time."
Eighty-four percent of CFP professionals in the study reported high career satisfaction, the study found. They also indicated high satisfaction in these areas:
- Stability – 86%
- Work-life balance – 83%
- Career advancement – 79%
- Professional development – 76%
- Compensation – 73%
Moreover, 89% of study participants said they planned to stay with their current company for the next two years, while 74% of those who are considering leaving their current company intend to remain in the financial planning profession.
“This study shows that CFP certification delivers rewards beyond higher pay, including strong career satisfaction,” CFP Board chief executive Kevin Keller said in a statement. “Those outcomes reflect what CFP certification represents at its core: a commitment to competent, ethical advice that delivers real value to the public and helps build stronger client relationships.”
Industry Insights, an independent research firm, collected compensation data from 1,489 financial planners across the U.S. from mid-April to mid-June.
More Comp Details
Experience is crucial for financial planners. Those who have more than 20 years of financial planning work experience received median 2024 total compensation of $359,000.
Compensation scales up significantly for financial planners in supervisory roles. Supervisors of five or more staff members reported median total compensation of $400,500 in 2024.
Across channels, planners reported the following median total compensation:
- RIA: $160,000
- Bank: $189,400
- Hybrid RIA: $207,500
- Wirehouse/Brokerage: $220,000
- Independent Broker-Dealer: $222,500
Financial planners receive cash salaries and bonuses but also employee benefits like defined contribution retirement plans, professional certification/designation dues, and health, dental and vision insurance. Fifty-seven percent of respondents had a hybrid work option.
The study also showed that financial planners have a median of 20 days of paid time off per year, and 26% have unlimited paid time off.
Most financial planners also have access to maternity, paternity, adoption and family medical leave.
— Melanie Waddell and Katie Rass contributed to this report.
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