Advisers who are directly authorized earn significantly more than those within a network, with a 19% difference in average salaries, according to data from a recent census by recruitment firm BWD. The census, which collected information from 540 participants, revealed that the average salary for directly authorized advisers stands at £114,097, compared to £96,773 for network advisers. Despite this wage gap, factors like additional support from networks and compliance costs associated with direct authorization may influence an adviser’s choice of affiliation.
The census also highlighted a 5.5% increase in average adviser salaries over the past year, rising from £79,218 to £83,562. Additionally, more than a quarter of advisers now enjoy base salaries exceeding £100,000, indicating a positive trend in adviser compensation. The data, gathered in January and February 2025, encompassed various aspects such as salaries, bonuses, revenue, and qualifications impact.
Moreover, the report shed light on the gender distribution among advisers, with 79% being male and 21% female. Despite the male dominance, there was a minimal gender pay gap, with male advisers earning an average of £110,190 compared to £108,045 for female advisers. The data suggests that income potential should not deter women from pursuing careers in advising.
Bonuses for advisers saw a significant 31% surge in the past year, reaching an average of £26,133. Various factors influence adviser earnings, including qualifications, age, location, gender, authorization type, organization size, and firm type. Advisers typically experience a salary increase after the age of 40, with those in the 40-50 age bracket earning an average of £115,410 compared to £59,100 for the 20-30 age group.
Chartered status significantly impacts earnings, with chartered advisers earning 31% more on average than those at Level 4 qualifications. The data suggests that qualifications play a crucial role in determining an adviser’s earning potential and career progression.
The census also delved into the paraplanning profession, revealing a 6.2% growth in average salaries to £46,417. Despite relatively lower bonuses for paraplanners, averaging £3,004, the report raised concerns about the earnings gap between paraplanners and advisers. Paraplanners often handle tasks beyond their traditional roles, navigating increasing technical, technological, and regulatory demands.
With the regulator emphasizing the need to meet consumer demands effectively, the report suggested that paraplanners could offer valuable insights and expertise, given their familiarity with client requirements and remote dealing practices. The average age of a paraplanner stands at 44, with minimal gender pay discrepancies observed in this profession, where male paraplanners earn slightly more than their female counterparts.
In conclusion, the data from the census underscores the evolving landscape of adviser and paraplanner earnings, emphasizing the importance of qualifications, experience, and gender diversity within the financial advisory sector. As the industry continues to adapt to changing consumer needs and regulatory requirements, collaboration between advisers and paraplanners may hold the key to enhancing client service and driving professional growth.