Show me more money
The difference in financial planner salaries between the capital cities is beginning to disappear, according to Profusion Groupmanager, financial planning, Chris Vine.
“Melbourne and Brisbane planners are paid in the same salary bands as Perth and Canberra,” he said.
“It is demand that is keeping salaries high and the shortage of good planners in the market.”
Estimating salaries for senior financial planners is not easy as there is a wide pay scale.
At the lower end of the salary scale, a senior financial planner might earn $80,000 on paper, but bonus payments could push the final figure out to $250,000.
“The shortage of good senior financial planners is keeping demand high and that is reflected in the packages being paid,” Vine said.
“Packages can also include cars, superannuation and other benefits including a bonus.”
In the past, a bonus could be between 10 and 30 per cent, but for the right planner this figure can be higher, he said.
Another trend is to pay a low base salary and top this up with a very high bonus.
“There is a shortage of good talent and there has been the turnover of planners changing jobs,” Vine said.
“We are all chasing the same people when a position arises.”
Headhunting good planners is easier because of the profile of some people, but luring them away from a practice is not always easy.
But if good senior financial planers are hard to find, experienced paraplanners are even rarer.
One adviser described paraplanners as “hens teeth”, which sums up the difficulty of recruiting them.
“It is more difficult to find paraplanners and the increase in demand for them in the last 18 months [has been] phenomenal,” Vine said.
“A paraplanner with three years experience can expect to earn $85,000 with a bonus of up to 40 per cent.
“The demand for paraplanners with less than three years experience is not so acute, and some are more administration assistants than someone who can prepare a SOA (Statement of Advice).”
However, paraplanners who are more experienced in an administration and support role will still be earning between $45,000 and $60,000.
“There are also career paraplanners who stay in the role and have no interest in becoming a planner,” Vine said.
“But there is a limited supply of these people as most work through their DFP (diploma of financial planning) exams while working as a paraplanner with the aim of becoming a planner after three years in the role.”
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