Over the next decade, the job outlook for financial advisors looks extremely promising, with abundant opportunities nationwide. The Bureau of Labor Statistics predicts employment of financial advisors will expand much faster than the average occupation. Growth is concentrated in cities with strong financial services sectors, but jobs can be found almost anywhere. An aging population seeking help with retirement planning helps fuel demand. Most advisors earn a median salary of $95,390, though pay can surpass $200,000. While artificial intelligence and automation pose potential threats, individuals are still likely to seek human helpers for complex planning needs.
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Financial Advisor Employment Expansion
The Bureau of Labor Statistics has projected that 55,000 new financial advisor jobs would be added between 2023 and 2033. That will increase the total number of positions 17% over the decade from 321,000 in 2023 to 376,000 in 2033. That growth pace is about four times faster than the 4% employment increase forecast across all occupations for the same period.
Employment opportunities for both new and established financial advisors will be even richer than this rapid growth suggests. The BLS predicts around 27,000 financial advisor job openings will become available each year on average. Many of those abundant openings are expected because large numbers of current financial advisors will retire and need to be replaced.
Financial Advisor Demand Drivers
Several factors are causing the rapid expansion of financial advisor jobs. Most significantly, as the baby boomer generation ages, more people will seek professional financial planning services to help them manage retirement.
The decline of traditional pension plans is another driver. Due to this trend, individuals increasingly need to make their own choices about 401(k) plans, IRAs and other investments to fund retirement. That creates demand for financial advisors.
Where the Financial Advisor Jobs Are
Financial advisors work everywhere in all states and cities, including small towns and rural areas. However, some places have more jobs than others.
At the state level, California employs the most financial advisors, with roughly 32,100 jobs. New York and Florida rank next, with 27,440 and 20,920 financial advisor jobs, respectively.
Financial advisors make up the highest share of all jobs in New Hampshire North Carolina, where there are 3.11 and 3.02 financial advisor positions per 1,000 jobs, respectively.
In terms of metro areas, the New York-Newark-Jersey City metro area also leads among metro regions, with 28,610 financial advisor jobs. That is well ahead of second-place Los Angeles, with 11,490 jobs.
What Financial Advisors Do
Financial advisor work activities include meeting with clients and providing advice to help them manage finances and meet goals. Duties typically include:
- Assessing client assets, liabilities, taxes and objectives
- Creating financial plans and investment strategies
- Recommend investments like stocks, bonds and insurance
- Monitoring portfolio performance and adjusting plans
- Educating clients on financial topics
Advisors focus on areas like taxes, estate planning, saving for education and retirement planning. Many buy and sell securities on the client’s behalf.
While advisors must focus on serving their existing clients, adding new clients and growing their assets under management (AUM) are both vital to ensuring their business continues to flourish. However, finding time and resources to devote to marketing and lead generation can be challenging.
That’s where SmartAsset’s Advisor Marketing Platform (AMP) can potentially help. This end-to-end marketing solution can help fiduciary financial advisors grow their practices more efficiently by automating their marketing and prospecting efforts. AMP can deliver up to 540 client referrals per year, allowing advisors to target up to 15 new clients. The platform’s Live Connections feature enables advisors to connect immediately over phone with a new leads, while advisors can leverage the Automated Outreach Tool to create personalized nurture campaigns to stay in touch with leads that have gone cold.
Financial Advisor Earnings
The median pay for financial advisors nationwide was $99,580 in 2023, with the top 10% of advisors in the best-paying markets earning more than $239,200.
Pay also varies by job title and sector. Those who work in securities, commodity contracts and other financial investments make over $104,000 on average, according to the BLS.
Financial Advisor Job Uncertainties
As with any forecast, the future outlook for financial advisors is not set in stone. One uncertainty is the rise of robo-advisors, which are automated investment platforms. However, most experts expect individuals will still seek personalized advice from human advisors for complex planning.
Artificial intelligence (AI) is another factor poised to impact the industry. AI tools are increasingly being integrated into financial advisory services, offering enhanced data analysis, portfolio management, and predictive insights. While these advancements can improve efficiency and provide advisors with better tools to serve clients, they also create potential challenges.
AI could lead to a more competitive landscape by enabling new entrants to offer sophisticated, low-cost financial planning solutions. Additionally, as clients become more comfortable with AI-driven advice, advisors may need to emphasize the value of human judgment, personalized service, and emotional intelligence in their work.
Bottom Line
With an aging population and a shift to individual retirement accounts, financial advisor jobs are rapidly expanding. The profession offers a robust job outlook over the next decade. Financial rewards are also appealing, and the work can be done from nearly any location. Individuals seeking help on financial topics like retirement planning will likely continue turning to advisors, although technology, regulation, tax law changes and the increasing intricacy of the financial world may pose challenges.
Tips for Growing Your Financial Advisor Business
- A financial advisor’s job can be hard enough without having to worry about every marketing detail. SmartAsset AMP (Advisor Marketing Platform) is a holistic marketing service financial advisors can use for client lead generation and automated marketing. Sign up for a free demo to explore how SmartAsset AMP can help you expand your practice’s marketing operation. Get started today.
- You can also leverage social media to help expand your services to new clients. Digital marketing is a popular tool for connecting with your target audience and getting more eyes on your business.
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