Financial advisors are professionals who help clients manage their finances. According to the latest U.S. Bureau of Labor Statistics (BLS) data, there are around 330,300 financial advisors employed in the country. The latest available demographics and statistics of such profession show the following: Understanding the current landscape of financial advisors in the U.S. can help make informed decisions when finding financial advice. Financial advisors are valuable assets in the management of personal and business finances. According to Zippia, 72% of financial advisors are male, and 28% are female. Data also show that males earn higher than females in this profession. The average annual income of female financial advisors is $58,316. In comparison, that of male financial advisors is $68,662. White is the most prevalent ethnicity among financial advisors, accounting for 76.5% of the population. In comparison, 8.6% are Asian, and 7.6% are Hispanic or Latino, followed by African Americans comprising 5.1%. The minority comprises unrecognized ethnicities, American Indians, and Alaska Natives. There is a considerable wage gap among different ethnic backgrounds. Financial advisors from an unknown racial background have the average highest salaries, earning $68,312 per year. Financial Advisors in the U.S. Overview
Gender Statistics for Financial Advisors
Race Statistics for Financial Advisors
Following closely in the statistics are the Asians at $67,128 per year and white advisors at $65,983. African Americans earn at least $53,785 annually.
Average Age of a Financial Advisor
The average age of financial advisors in the United States is 44 years old, with the 62% majority being above 40 years old.
Financial advisors aged 30 to 40 represent 27% of the population, and young financial advisors aged 20 to 30 make up 10%.
Financial Advisors by Education
Most financial advisors hold a bachelor's degree as their highest level of education, with 74% obtaining one. In addition, 12% have a master's degree, and the rest possess an associate degree, high school diploma, and other kinds of degrees.
The level of education affects a financial advisor’s overall cost. The higher the level of education, the higher the salary. Those with a doctorate earn the most at $86,634 annually, followed by those with a master's degree at $76,666.
Statistics on Financial Advisor Employment
Most financial advisors work in securities, commodity contracts, other financial investments, and related activities in industry accounting. Such accounts for 19.98% of industry employment
The next most significant sector, far behind at 2.2%, is credit intermediation and related activities.
The rest of the financial advisors work in agencies, brokerages, other insurance, and related activities.
Statistics on Financial Advisor Turnover and Unemployment
A review of 33,322 financial advisor resumés by BLS indicated that 42% of financial advisors stay at their job for approximately 1-2 years. 20% of financial advisors look for another job in less than a year. Only 6% were employed in the same place for more than 11 years.
Generally, the trend of unemployment for financial advisors has been decreasing. The trend indicates an increase in job opportunities for financial advisors. In 2010, the unemployment rate was 3.85%, and data from 2019 shows that it is at 1.59%.
Average Annual Salary of a Financial Advisor
The latest available data shows that the average annual salary of a financial advisor in the U.S. is $94,170. The highest 10% earning financial advisor receives more than $208,000, while the lowest 10% earns less than $47,570.
The top-paying industry is where most financial advisors are employed. Most are engaged in securities, commodity contracts, other financial investments, and related activities. The average annual wage is $99,970.
Financial Advisor Job Outlook
The job outlook for financial advisors is positive. The projected growth rate for financial advisors from 2022 to 2032 is 13%, much higher than the average of all occupations. This indicates that more financial advisors will be needed to serve a growing population.
Over the next decade, the average number of opportunities for personal financial advisors is expected to be around 30,500. The anticipated growth can result from the need to replace people who change occupations or leave the labor force, such as retiring.
Final Thoughts
Financial advisors are professionals who help clients manage their finances. There is a growing demand for the profession. The Bureau of Labor Statistics data shows that more than 330,300 financial advisors are employed in the United States.
Statistics show that they came from different backgrounds regarding gender, age, race, and education. The trend of turnover and unemployment and the diversity of financial advisors is encouraging as it opens many job opportunities.
Given the increase in demand, financial advisors can expect to have many opportunities in the near future. The latest available average salary is $94,170, and the job outlook for this profession is expected to be positive in the upcoming years with a 15% growth rate.
The number of financial advisors will continue to increase as people become more aware of the importance of managing their finances and the industry continues to expand. With the proper guidance, investors can make sound decisions and grow their wealth.
How Many Financial Advisors Are in the U.S.? FAQs
According to the 2021 U.S. Bureau of Labor Statistics data, there are more than 330,300 financial advisors employed in the United States with an increasing number projected over the next decade.
It is estimated that in the United States, 35% of people have a financial advisor. This indicates that almost one for every three of the population has sought advice from a professional financial advisor in managing their finances and investments.
The financial advisor industry is estimated to be $59.7 billion in 2023. Financial advisors have been playing a crucial role in providing advice and guidance to individuals and businesses to make wise financial decisions.
The mean age of financial advisors 44, with 62% being over 40; 27% falling within the thirty to forty-year range and 10% comprising those aged twenty to thirty.
New York is the highest-paying state in the U.S. for financial advisors, with an average salary of $158,040. This is nearly 67% higher than the national average salary of $94,170. Other top-paying states include the District of Columbia, $156,670 and Washington, $144,890.
True Tamplin is a published author, public speaker, CEO of UpDigital, and founder of Finance Strategists.
True is a Certified Educator in Personal Finance (CEPF®), author of The Handy Financial Ratios Guide, a member of the Society for Advancing Business Editing and Writing, contributes to his financial education site, Finance Strategists, and has spoken to various financial communities such as the CFA Institute, as well as university students like his Alma mater, Biola University, where he received a bachelor of science in business and data analytics.
To learn more about True, visit his personal website or view his author profiles on Amazon, Nasdaq and Forbes.
