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20+ Financial Advisor Statistics You Must Know in 2024

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financial advisor industry statistics
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Starting a career as a financial advisor may seem like an exciting endeavor. But is it really a profitable venture?

Well, only an insight into the gathered statistics and data can help us evaluate that.

Whether you are planning to venture as an individual advisor or start an advisory firm— it is important to evaluate the earning potential, future opportunities, and trends within the advisory marketplace to make an informed choice.

These financial advisor statistics cover different aspects of information to help you get a macro perspective on the industry.

Ready to get started? Let’s dive right in.

Financial Advisor Employment Statistics

Let’s have a look at these statistics highlighting the size of the labor force market, job opportunities, payscale, asset value, size of advisory firms, and much more.

1. There are 283,060 financial advisors employed in the US. (source)

While the data from BLS  (Bureau Of Labor Statistics) suggests nearly 283,000 jobs for financial advisors, the data from the dataUSA suggests this number to be 384,361. Another prominent research suggested this number to vary between 240,000-360,000.

What causes this difference is the multifaceted approach of this profession. However, it’s safe to assume that a few hundred thousand professionals are working as financial advisors across the US.

2. Only 35% of the Americans have a financial advisor. (source)

Nearly 57% of the people have no financial representative in the US. While it may seem that people have started adopting a DIY approach to managing their finances, advisors with sound financial planning skills will continue to dominate the market space.

3. The average salary of a financial advisor in the US is $77,923. (source)

Although this average pay is better than professionals working in different industries, finance advisors can earn wages as high as $147,459 and sometimes even more depending on their credentials, expertise, and location.

4. Nearly 60% of financial advisors prefer working for private companies. (source)

Private institutions employ more financial advisors than any other sector. Only 25% of financial advisors are employed by public companies, while less than 5% work for government agencies.

5. As of 2022, there were 15,114 SEC-registered advisors in the US. (source)

Between 2021 and 2022, the number of brokerage firms reduced by 11.1%. However, during the same time, the number of SEC-registered financial advisors grew by 2.1% making it prominent that self-employed advisors or small advisory firms are on the rise.

6. Most Investment advisors are small businesses. (source)

91.7% of the advisory private companies employed less than 100 employees generating industry employment for 971,487 people in 2022. These companies have been managing total assets worth $114.1 Tn of individual clients across the US.

7. The financial advisors market is expected to have a job growth of 4.41% between 2019 and 2029. (source)

According to the Bureau of Labor Statistics financial advisors’ job market is predicted to grow much faster than the national average. The national workforce during the same forecast period is predicted to have a job growth of 3.71%.

Personal Financial Advisors Statistics

Nearly 15% of all financial advisors in the US are self-employed. The following statistics will uncover the top hiring segments for personal financial advisors, their market size, average earnings, and much more.

1. Employment in the personal financial advisor market is expected to have a projected growth rate of 13% between 2022 and 2032. (source)

While the financial advisory market is entirely growing, this segment is projected to grow the largest. The 13% job growth rate is much higher than the normal average recorded for all the other industries.

2. The median wage for personal financial advisors is $154,362 annually. (source)

This is much higher than the national average salary of $59,596.  Even in the field of advisory services, personal advisors tend to earn better, especially when working in securities, commodities, funds, trusts, and other financial investments.

3. The securities, commodity contracts, and financial investments industry employs 20.18% of personal financial advisors. (source)

As of 2021, nearly 204,430 finance advisors were employed in this industry with an average annual wage of $150,540. This industry indeed hires the most personal financial advisors followed by the banking and non-depository credit segment.

4. 62.8% of advisors offer asset management services for individuals. (source)

Amongst the different types of clients financial advisors have, the highest are individual clients followed by institutions and a pooled vehicle. About 56% of the advisors had individual clients with non-high-net worth, while only 14% had a client with high net worth.

It is safe to assume that advisors mostly cater to individual clients across the US.

Financial Advisor Demographics and Geographics Statistics

Let’s have a look at these statistics to get an understanding of financial advisor’s age, gender, race, education, and geographics.

1. Nearly 70% of the people working as Financial advisors are males. (source)

To be precise, only 28% of the people working as financial advisors are female. This indicates that most financial advisors are male.

Additionally, male professionals tend to have higher average pay than females in the field of advisory services. To offer a rough overview, the annual average salary of a male is $176,611 while that of a female is $104,515.

2. The average age of a financial advisor is 44.8 years. (source)

According to a study, 61% of financial advisors are older than 40 years. This is one of those professions dominated by middle-aged people and not younger cohorts. Only 11% of the financial advisors offering financial planning services are aged between 20 and 30 years.

3. Nearly 80% of the personal financial advisors are white. (source)

44-something male whites dominate the market of personal financial advisors. This is followed by black and Asian males constituting a total of 12% market. Females as discussed hold a very negligent share in this male-dominated marketspace.

4. Nearly 74% of financial advisors hold a bachelor’s degree. (source)

Most financial advisors hold a bachelor’s degree to get started as a certified financial planner. And, while a bachelor’s degree is sufficient, 12% of financial advisors hold a master’s degree to benefit from a slightly higher pay.

5. The state of California has the highest employment levels for personal financial advisors. (source)

The top 5 states employing personal financial advisors in 2021 were California, New York, Florida, Texas, and North Carolina. According to statistics, these states combined employ nearly 110,000 personal financial advisors across the US.

6. Alaska is the top-paying state offering an annual mean wage of $229,730. (source)

A personal financial advisor in Alaska earns more than financial advisors in the other states. New York, New Jersey, and Pennsylvania follow this list offering an average annual wage between $163,400 and $203,070.

Financial Advisor Services Statistics

The following statistics highlight the size of the advisory services market, its projected growth rate, assets under management, and the trend of robo-advisors in the market.

1. Between 2023 and 2029, the financial advisory services market is predicted to register a CAGR of 6%. (source)

The market of financial services offered by wealth managers, certified financial planners, investment advisors, and certified public accountants is predicted to grow slowly but consistently over the coming years. This includes common advisory services such as tax and accounting advisory, risk management, corporate finance, and transaction services.

2. The market of financial advisory services is predicted to have a value of $146.8 Bn by 2032. (source)

North America dominates the financial advisory market by taking 40% of the global market share. Indeed, the advisors in the US can hope for a bright future given that they adopt AI technologies to offer more accurate and diverse planning services.

3. The investment advisory services segment is predicted to register a CAGR of 5.5% between 2022 and 2032. (source)

This growth is the result of increased complexity and the evolving financial markets. Investors are actively seeking portfolio guidance, retirement planning, and risk management to gain higher returns in this dynamic market.

4. By 2024, the assets under management in the financial advisory market would reach $62.62 Tn. (source)

Between 2024 and 2028, these assets are expected to experience a whooping annual growth rate of 7.99% resulting in a market volume of $85.14 Tn by 2028.

The statistics reveal that the US will experience a significant surge in demand for financial advisory services to manage high-volume assets in the coming years.

5. Between 2024 and 2030, the global robo-advisory market is expected to register a CAGR of 30.5%. (source)

Robo advisory platforms offering virtual and simplified wealth management services are on the rise. The easy accessibility and cost-effectiveness of these services make them widely convenient and popular for investors. However, only 40% of investors rely on robo-advisors for getting reliable advice.

Conclusion

Despite the advances in technologies and AI, the demand for highly proficient financial advisors will be on the rise.

Whether you are planning to make a career as a personal financial advisor or establish a small-scale advisory business—this profession promises a rewarding scope of work and exceptional earning potential.

It’s indeed a thriving marketplace. We hope the statistics above can guide you on the right path to make an informed choice.

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About the Author

Upmetrics                                                       
            Team

Upmetrics Team

Upmetrics is the #1 business planning software that helps entrepreneurs and business owners create investment-ready business plans using AI. We regularly share business planning insights on our blog. Check out the Upmetrics blog for such interesting reads. Read more

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