For the fourth consecutive year, IFP has conducted its annual Paraplanner survey, designed to provide further insight into this important role in the Financial Planning profession.
This year's survey attracted 79 responses, more than ever before. It was open to all UK based Paraplanners, not just IFP members.
75% of respondents were aged 44 or under, with 38% aged between 25 and 34. 60% of respondents have level 4 qualifications, whilst advanced qualifications were also evident. 30% reported having a University Degree and circa 20% having level 6 qualifications such as CFPCM certification. Over 20% are also working towards level 6. Reflecting their positive attitudes towards professionalism, 94% are members of a professional body although just 23% are registered individuals with the FCA.
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The results reveal that use of the strategic Financial Planning tool cash flow modelling is also strong amongst this young and dynamic group. 79% work in firms which use cash flow, with 64% personally involved in delivering it. Paraplanners are also actively involved in the due diligence/research processes on financial products within the firm, with 83 % reporting that they are involved either exclusively (33%) or along with the Financial Planners (49%). It seems that Financial Planner magazine is a popular choice, with 67% saying they read it regularly or occasionally.
Interestingly, the majority of respondents clearly see themselves as continuing their career as a Paraplanner, supporting the view of Paraplanning as a strong career choice in its own right. 65% reported that they wish to remain as a Paraplanner, with 23% indicating that they aspire to become an adviser or Financial Planner in future.
Proving the versatility of Paraplanners, the survey found that the number of advisers supported by an individual Paraplanner varies significantly. Whilst 39% of Paraplanners work with just one adviser or Financial Planner, 24% work with 5 or more advisers, reflecting the role of outsourced Paraplanners. 56% report that they have an excellent working relationship with their Financial Planner/s and 83% indicating that that they feel valued as a team member.
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As the role gains greater recognition, Paraplanners' earnings are rising, reflecting the value that they clearly deliver to the business. 51% of respondents report that they now earn between £30,000 and £40,000 a year.
Sue Whitbread, Communications Director of IFP comments: "This survey has been extremely helpful in providing us with detailed information we can use to support PAraplanners' needs more effectively in future. I'd like to thank all the Paraplanners who took the time to respond. The results will also be of benefit to the whole Financial Planning community as we inform stakeholders of what Paraplanners need to do their job most effectively."