Sokanu rates Financial Advisors with an A employability rating, meaning this career should provide great employment opportunities for the foreseeable future. Over the next 10 years, it is expected the US will need 45,300 Financial Advisors. That number is based on 40,400 additional Financial Advisors, and the retirement of 4,900 existing Financial Advisors.
Demand for Financial Advisors
Significant job growth and security are anticipated for financial advisors, partly due to the large portion of the population approaching retirement. As baby boomers in particular age and company-managed pension plans give way to self-directed retirement savings accounts, individuals will increasingly need professional guidance on investing and retirement planning. The rising number and complexity of investments and longer life spans that lead to longer periods of retirement are adding to this demand. Complex tax and estate laws should create further momentum in financial services. Coupled with these factors, deregulation of the industry is causing banks, brokerages, and insurance companies to expand their services and hire more financial planners and advisors. On the other hand, the entry of these sectors into the financial planning and advice field will increase competition for customers. Despite overall employment growth, competition for jobs in the industry is predicted to be very strong.
After earning a relevant Bachelor’s Degree and gaining three years of relevant work experience, financial advisors may pursue the Certified Financial Planner (CFP) designation. This credential, awarded to candidates who pass an exam administered by the Certified Financial Planner Board of Standards, is highly regarded both in the industry and by investors. While these educational and professional designations are fundamental, it cannot be overlooked that successful financial advisors must possess or develop the sales and marketing skills to build a client base that will generate significant commissions and fees. The extremely competitive nature of the industry sustains a high turnover rate, as new entrants sometimes fail to establish a sufficiently large clientele and leave the occupation.
Supply of Financial Advisors
The Financial Advisor industry is not particularly concentrated in any state.
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