CFP® Professionals Earn 10% More Than Other Financial Planners
WASHINGTON, Sept. 5, 2024 /PRNewswire/ — CFP Board today announced new data from a compensation study that reveals that CFP® professionals enjoy higher earnings and greater career satisfaction than financial planners without CFP® certification.
The CFP Board 2024 Compensation Study found that CFP® professionals earn 10% more than other financial planners after controlling for other factors like job experience, company size and the type of services they offer. The median 2023 total compensation for all financial planners was $192,000.
The study shows high career satisfaction among CFP® professionals, with 85% experiencing a high to very high sense of personal fulfillment. Key job areas rated as good or excellent include stability (88%), work/life balance (82%), career advancement (79%) and compensation (74%). Additionally, 89% of CFP® professionals plan to stay with their current company for the next two years and, of those considering leaving, 67% intend to remain in the financial planning profession.
“It’s no surprise that CFP® professionals are extremely happy in their careers. The findings in the 2024 Compensation Study show that a career in financial planning is quite possibly the best job ever,” said CFP Board CEO Kevin R. Keller, CAE. “CFP Board is committed to providing this annual research study as a powerful benchmarking resource for firms and CFP® professionals to demonstrate the value of CFP® certification.”
The study shows that CFP® professionals also have greater income potential than financial planners without CFP® certification. Experience plays a crucial role for financial planners, with those who have more than 20 years of financial planning work experience enjoying a median 2023 total compensation of $325,000. For financial planners supervising staff, compensation scales up significantly. Those who supervise six or more staff reported a median total compensation of $400,000 in 2023.
CFP® professionals not only benefit from cash salaries and bonuses but also from valuable employee benefits, including health, dental, life and disability insurance as well as professional development opportunities. Furthermore, CFP® professionals have access to quality retirement benefits and other deferred compensation plans, with packages including defined contributions (98%), profit sharing (42%), stock options (17%), Employee Stock Option Plans (ESOPs) (8%) and pension plans (6%).
Work/life balance is another key highlight of the study, with financial planners achieving a balance that allows them to thrive both professionally and personally. CFP® professionals have a median of 21 days of paid time off (PTO) per year, with 27% having unlimited PTO. Their median hours worked per week is 44.
Download and read the full CFP Board 2024 Compensation Study.
About the Survey
CFP Board commissioned independent research firm Industry Insights to collect compensation data from financial advisors across the United States. The survey generated 1,455 responses with a margin of error of +/- 2.6% at a 95% confidence level. Strict confidentiality of survey responses was maintained throughout the project.
ABOUT CFP BOARD
CFP Board is the professional body for personal financial planners in the U.S. CFP Board consists of two affiliated organizations focused on advancing the financial planning profession for the public’s benefit. CFP Board of Standards sets and upholds standards for financial planning and administers the prestigious CERTIFIED FINANCIAL PLANNER® certification — widely recognized by the public, advisors and firms as the standard for financial planners — so that the public has access to the benefits of competent and ethical financial planning. CFP® certification is held by more than 100,000 people in the U.S. CFP Board Center for Financial Planning addresses diversity and workforce development challenges and conducts and publishes research that adds to the financial planning profession’s body of knowledge.
SOURCE CFP Board