If you’re interested in developing your career as a paraplanner or becoming a trainee paraplanner, now is the time. Until around 20 years ago, the role didn’t exist and financial advisers would hop between client-facing and back-office tasks.
Eventually, paraplanning became a vague position that sat somewhere between an administrator and a financial planner – but recently, the role has become much more – and today paraplanners are indispensable.
A good paraplanner can add real value to a firm by creating capacity for its advisers and allowing them to spend more time with clients. It is well documented that trainee paraplanners are in high demand and short supply; and as demand continues to grow, salaries are being pushed upwards as firms compete to attract the best talent. Skilled paraplanners are some of the hottest talent in the financial services market right now – so if you want to progress your career, now is the perfect time!
The golden age of paraplanning
Historically, the role of the paraplanner was seen as a stepping stone for those who wanted to get their foot on the career ladder and become a financial adviser. But what was once thought of as an administrative position has become an increasingly technical role in its own right – and paraplanners today are now highly valued by their colleagues and seen as an integral part of financial planning.
One of the key catalysts for change was the Retail Distribution Review, which meant that financial firms were under pressure to provide consistent client outcomes. Paraplanners are a source of referral and guidance. They are there to ensure that any advice given is suitable, of the very best quality and fully documented on the file – and in today’s compliance-orientated post-RDR world, the role of the paraplanner is essential.
In a recent study, two-thirds of financial planners and advisers said paraplanners free them up to concentrate on more valuable activities, whilst nearly half said they also add value in other non-financial ways. And in a survey of some 200 advisers, only 8% saw paraplanners as not adding any value. As advisers find themselves under increasing time pressure, the demand for trainee paraplanners and qualified paraplanners will only continue to grow – so if you’re thinking about progressing your career as a paraplanner, here are five reasons why now is the right time…
1) Variety is the spice of life
Far from being just a glorified administration role, paraplanner jobs today are challenging, exciting, and offer a great deal of variety. The role is incredibly varied: on any day, paraplanners can be involved in everything from conducting due diligence to research into the latest products and industry area. They could be looking at bonds, crunching numbers or keeping up to date with regulatory changes; every day is different! Paraplanners work both independently and as part of a team, there’s a huge level of responsibility in achieving agreed outcomes without supervision, and attention to detail and excellent interpersonal skills are a must. That’s quite a list – it’s no wonder experienced paraplanners are in such high demand!
2) Be at the forefront of financial knowledge
As industry standards continue to increase, paraplanning is becoming even more technical. Paraplanners today need to have a broad knowledge of financial services as well as strong technical knowledge on key products and busy areas such as taxation, regulation, legislation and compliance – and as a result, paraplanners now enjoy recognition in the industry and are seen as highly-trained, invaluable employees. After all, it’s the paraplanners that dig at the detail and provide advisers with the information they need. Behind every good financial adviser is an excellent paraplanner who will be able to answer technical questions, carry out complex calculations and provide up-to-date research. Basically, without the technical knowledge of a paraplanner, financial advisers can’t do their jobs to the best of their abilities.
3) Enjoy incredible earning potential
Firms today aren’t afraid to pay for high-quality paraplanners – and the salaries on offer clearly reflect the growing importance of paraplanning and the increasing dependence placed on them by financial advisers. In fact, the wage gap between the two roles is starting to narrow: high-end paraplanners and paraplanning managers can now earn up to £60,000-£70,000 – and as the role continues to become more technical, demanding and client-facing, salaries are only set to rise further. All of this means that rather than treating paraplanning as a springboard to another role, there has never been a better time to develop your paraplanning career and reap the rewards.
4) Be part of the next generation of the industry
It’s no secret that the financial advice industry is on the brink of disruption. As advisers age out of the industry, the next generation isn’t entering the field fast enough to fill the gap. The average age of a financial adviser today is 51, and 38% of advisers are expected to retire in the next 10 years. However, paraplanners are younger than most advisers. In fact, 80% are between 25-44 years old, and ⅔ of paraplanners are female, as opposed to the male-dominated world of financial advice. In addition, 62% of paraplanners want to remain as career paraplanners, clearly showing that paraplanning is no longer being viewed as a ‘stepping stone’ to becoming an adviser, but rather an outright career choice in itself.
5) Benefit from clear career progression
The job role and level of support paraplanners can give financial advisers will vary depending on the amount of experience they have. From a trainee paraplanner with a Certificate in Financial Planning to Senior Paraplanners with 5-10 years+ experience and full diplomas, there’s a well-marked progression route. There’s a clear examination path to follow, from certificate level qualifications through to Diploma level qualifications and then on to advanced level qualifications and obtaining a CFP licence and internationally recognised qualifications. Not only is this great for paraplanners who want to progress their career, but it also helps the industry to become more attractive too. For those looking for a clearly defined career path where knowledge and experience is rewarded both financially and with professional standing in the industry, paraplanning as a great choice.
The future is bright
The future has never been brighter for an ambitious trainee paraplanner who wants to progress. As paraplanners continue to become indispensable to financial advisers, the salaries on offer are starting to reflect the growing importance of paraplanning and the wage gap between advisers and paraplanners is narrowing. It’s an exciting time to start a career in paraplanning – so if you are interested in finding out more about the paraplanner roles we are currently working on at Recruit UK, contact our team today.