Paraplanning: a career in the making
Wage levels for paraplanners have stagnated over the past year, according to the Money Management Salary Survey.
Our research shows the average salary for paraplanners of all levels of experience has remained the same in each state, with a modest increase recorded for Canberra-based paraplanners.
However, despite this somewhat negative result, many predict there are pay increases on the horizon. According to Conor Donoghue, senior consultant at the Financial Recruitment Group, increased regulation means paraplanners are more essential than ever — no longer are they viewed as a type of apprentice planner.
While many advisers began their careers in paraplanning roles, individuals entering this profession today are more likely to view it as a career path in its own right, rather than simply a stepping stone to financial planning.
“Long gone is the assumption that paraplanning is a junior role,” Donoghue says.
“Some of the younger paraplanners view themselves as the ‘new breed’ of the industry — here to fix the wrongs of the past. They are generally well-educated, know what they want and are not afraid to work hard to get it. Unlike some of the more mature people in the industry, on-going education and utilisation of the latest technology is essential to them and something they are likely to embrace.”
Donoghue says he has even seen individuals move from the role of adviser to paraplanner, after becoming disillusioned with the sales element of financial planning positions.
Andrew Creaser, deputy managing director at Genesys Wealth Advisers, says he “could place 10 good paraplanners tomorrow but I can’t find them”.
However, he adds: “The difficulty is to establish whether or not the predicted upward trend is as a consequence of more value being placed on the role under financial services reform, or in fact, because there’s a dearth of good paraplanners. But certainly supply and demand is in their favour at the moment.”
As the position of paraplanner is cemented as a stand-alone role, salary increases are sure to follow.
We should also expect to see a continual consolidation of advisers in-house systems and staff, according to Donoghue.
“As costs mount from recent FSR implementations, some advisers are actively looking at the fund managers to offer paraplanning and technical services. And they are happy to pay for this if they can get employment costs off the balance sheet.”
In the future, Donogue predicts “a lift in the remuneration of paraplanners”.
“While salaries have not risen dramatically, dealer groups, principals and institutions are willing to take a realistic view on the bonus components, training opportunities and career path for this sector,” he adds.
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