It’s not all Lexi and bling

Preconceived notions that financial planners are well remunerated for their efforts to advance the wealth of others are somewhat wide of the mark, with more than 50 per cent of respondents reporting their annual income was less than $110,000.

Results from the Money Management Salary Survey found that 13 per cent of employee planners take home less than $70,000, with a further 40 per cent earning between $70,000 and $120,000 a year.

While less than one in four reported that their current annual income was more than $150,000 per annum, one per cent claimed an annual pay-packet in excess of $500,000.

Gender divide

Outnumbered three to one in the survey, almost two-thirds of female employee planners reported earning less than $110,000, with 18 per cent saying they took home salaries of less than $70,000.

VIEW ALL

View all

While half of their male colleagues reported their salary was less than $110,000 a year, and 12 per cent said they earned less than $70,000 per annum.

At the other end of the income spectrum, female employee planners were less than half as likely to claim incomes of more than $150,000 as their male workmates.

WHAT IS YOUR CURRENT ANNUAL INCOME? – EMPLOYEE FINANCIAL PLANNERS

Modest dreams

When asked what they believed their salaries for their current roles should be, the majority of employee planners felt they were worth more than they were being paid.

However, despite wanting bigger pay-cheques, the survey revealed just one third of respondents felt they deserved a salary of $150,000 or more, with nine per cent believing they should be paid more than $250,000 a year, while two per cent felt that a salary of less than $70,000 was justified.

Men dream bigger

When the data was broken down by gender, there was a significant gap in the expectations of male employee planners and their female colleagues, with 38 per cent of men believing they should be paid more than $150,000 per annum, compared to less than a quarter of women.

Although male planners confessed dreams of bigger pay-packets, 44 per cent felt salaries of less than $110,000 a year were fair remuneration for their efforts, while 46 per cent of female respondents were of the same view.

WHAT IS YOUR CURRENT ANNUAL INCOME? – THE BOSSES

The bosses

Responses from chief executives, managing directors, and practice principals in the planning sector also reported relatively modest incomes, with just one in five claiming to take home more than $250,000 a year.

Despite making up almost 30 per cent of all respondents in this group, the survey found that no female chief executive, managing director or practice principal who took part in the survey, claimed an income of more than $220,000 a year.

While 19 per cent of male respondents in this group said they earned more than $250,000.

Top brass would like more

While metaphorically, many chief executives, managing directors, and practice principals collected wheelbarrows of cash each year, compared to their employee planners, they were also keen to earn a little bit more.

The survey found that almost a quarter of respondents felt they deserved to be paid in excess of $250,000 per annum.

Clients blocking salary bumps

For employee planners, clients undervaluing services and poor organisational management were identified as the main factors preventing them from getting the salary they deserve.

WHAT IS THE BIGGEST IMPEDIMENT TO YOU OBTAINING THE SALARY YOU WANT? – EMPLOYEE FINANCIAL PLANNERS

Almost one in five planners reported that clients not feeling the need for advice, or undervaluing their service offering were among the biggest barriers to boosting their pay-cheque.

While 20 per cent pointed the finger of blame in the direction of their managers, reporting poor organisational management was thwarting their goals of obtaining a higher salary.

Not being a good fit within their current organisation was the main issue for four per cent of respondents, while two per cent reported that their gender was holding them back.

Clients undervaluing services was the single biggest factor preventing chief executives, managing directors, and practice principals from earning more, according to 17 per cent of that group.

Poor organisational management was also recognised as an impediment to their earning potential, with seven per cent of respondents saying so.

HIGHEST LEVEL OF EDUCATION – EMPLOYEE FINANCIAL PLANNERS

Aligned/Non-aligned

Within aligned planning groups, almost a quarter of respondents saw poor organisational management as the key stumbling block preventing them from earning more, while 17 per cent claimed there was a "lack of opportunity" to boost their earning potential, with 20 per cent reporting client apathy as the main problem.

Among respondents working for non-aligned planning groups, the issues of poor organisational management (18 per cent), clients undervaluing services (16 per cent) and lack of opportunity (11 per cent) were again the top three impediments to earning more.

However, 46 per cent of non-aligned planners said other factors were at play, with respondents identifying numerous issues ranging from their practice having "too many management (non-revenue) overheads, which prevent it from paying staff (revenue earners) market rates" to one planner saying working for his father was the barrier to a pay-hike.

WHAT IS THE HIGHEST LEVEL OF EDUCATION COMPLETED? – THE BOSSES

Happy to stay

While many planners reported being keen to see their salaries rise, the survey found almost 60 per cent of planners had no intention of leaving their current role, although close to 30 per cent of respondents said they would be "available to offers", with a higher proportion of female respondents (40 per cent) saying they would be open to an approach from a rival organisation, than men (25 per cent).

While the survey found female planners were more open to considering job offers, there was no significant difference in the proportion of female and male planners who said they felt valued by their current employer (67 per cent).

When it came to feeling undervalued, less than one in five planners reported that they were not valued by their employer, with a further 15 per cent saying they were "unsure".

An educated lot

The survey found that one in four employee financial planners hold a Post Grad (13 per cent) or Masters (12 per cent), while a further 37 per cent hold a BA as their highest level of education.

When broken down by gender, male planners were marginally more likely to have a BA at least (63 per cent), compared to their female colleagues (59 per cent).

Among chief executives, managing directors, and practice principals, the academic achievements were even higher, with 34 per cent holding a Post Grad (20 per cent) or Masters (14 per cent).

While a greater proportion of this group reported holding Post Grad and Masters qualifications, it also had a higher ratio of those without a degree (43 per cent) compared with employee planner respondents (38 per cent).

Professional qualifications

While the survey found that chief executive, managing director, and practice principal respondents were more likely not to have a degree than their employees, they were marginally more likely to hold professional qualifications.

The survey revealed roughly 30 per cent of both employees and their bosses were Certified Financial Planners, while three per cent of chief executive, managing director and practice principals reported being Fellow Chartered Financial Planners, compared with one per cent of employees.

Just over a quarter of leaders said their only professional qualification was the RG146, compared to a third of employee planners.