For those pursuing a career in financial planning, earning the CFP designation can open doors to lucrative opportunities, enhance career prospects, and offer competitive salaries in a growing industry.
In this comprehensive CFP salary guide, we will cover:
- Key factors influencing CFP salaries, including experience, location, and employer type,
- Additional benefits and incentives that CFPs often enjoy,
- Detailed salary ranges for CFP professionals across experience levels,
- Regional salary comparisons within the US and globally.
Check out our comprehensive guide below.
Overview of CFP salaries in the US
The Certified Financial Planner (CFP) designation is one of the most respected certifications in the financial planning industry. CFPs are highly trained professionals who help individuals and businesses manage their finances, including investments, retirement planning, tax strategies, and estate planning.
CFP professionals enjoy competitive salaries due to the high demand for their expertise.
According to CFP Board, median total compensation a CFP range between $100,000 and $325,000. These figures can vary significantly depending on experience, location, and employer type, therefore it is crucial to understand the factors influencing earnings.
Factors that affect one’s CFP salary
Experience: entry-level vs. experienced CFPs
It goes without saying that experience plays a crucial role in determining a CFP’s salary.
Entry-level professionals typically earn at the lower end of the salary range, often between $50,000 and $150,000 annually.
In contrast, seasoned CFPs with over a decade of experience can command salaries exceeding $325,000, especially when working with high-net-worth clients.
Geographic location: High-paying cities vs. rural areas
Location significantly impacts salaries due to cost-of-living differences and regional demand for financial planning services.
High-paying cities such as New York, San Francisco, and Chicago often offer salaries 20-30% higher than the national average. On the other hand, CFPs in rural areas may earn less, although they may benefit from lower living costs.
Employer type: Large firms vs. small firms vs. self-employment
CFPs employed by large financial institutions or wealth management firms tend to receive higher base salaries and comprehensive benefits. Smaller firms may offer slightly lower salaries but often provide more opportunities for profit-sharing and career advancement.
Self-employed CFPs have the potential to earn the most, depending on their ability to build and maintain a strong client base.
Job role and responsibilities: Specializations and client types
The scope of responsibilities and areas of specialization can also influence earnings.
For instance, CFPs specializing in estate planning or tax strategies for high-net-worth individuals often earn more than those providing general financial planning services. Similarly, working with corporate clients or managing significant investment portfolios can lead to higher compensation.
Profit sharing and bonuses: Additional income opportunities
Many CFPs supplement their base salaries with bonuses, profit sharing, or commission-based income. These additional earnings can significantly boost total compensation, particularly for professionals in sales-oriented roles or those managing large, successful client portfolios.
Additional benefits beyond salary
Health and retirement benefits: Insurance, 401(k) match
While the salary of a Certified Financial Planner (CFP) is an important factor, many CFPs also enjoy a range of additional benefits that enhance their overall compensation package. These benefits not only provide financial security but also contribute to a better work-life balance and long-term career growth.
Health Insurance: Many employers offer comprehensive health insurance plans, including medical, dental, and vision coverage. These benefits are particularly valuable for CFPs working in large firms or financial institutions.
Retirement Plans: Employers often provide retirement benefits such as 401(k) plans, with some offering matching contributions. This is a significant perk, as it helps CFPs build their retirement savings while reducing their taxable income.
Performance bonuses and profit-sharing: Additional earnings
Performance Bonuses: CFPs who meet or exceed their performance targets often receive annual bonuses. These bonuses can range from $10,000 to $50,000 or more, depending on the firm and the individual’s performance.
Profit-Sharing: Some firms offer profit-sharing programs, where employees receive a portion of the company’s profits. This can be a lucrative addition to a CFP’s income, especially in successful firms.
Stock options: Long-term financial growth
Equity Incentives: CFPs working for publicly traded companies or large financial institutions may receive stock options as part of their compensation package. These options allow CFPs to purchase company stock at a discounted rate, providing an opportunity for long-term financial growth.
Employee Stock Purchase Plans (ESPPs): Some companies offer ESPPs, enabling employees to buy company stock at a discount, often through payroll deductions. This can be a valuable benefit for CFPs looking to build wealth over time.
Paid time off and professional development: Work-life balance and skill enhancement
Paid Time Off (PTO): Many employers offer generous PTO policies, including vacation days, sick leave, and holidays. This allows CFPs to maintain a healthy work-life balance while taking time to recharge.
Professional Development: Employers often invest in their CFPs’ growth by covering the costs of continuing education, certifications, and industry conferences. This not only enhances the CFP’s skills but also ensures they stay up-to-date with the latest trends and regulations in financial planning.
CFP retirement and deferred compensation statistics
Certified Financial Planners (CFPs) employed by companies often have access to various retirement and deferred compensation plans, which can play an important role in their overall compensation package. These plans provide long-term financial security and can vary based on the employer.
Below are the key statistics regarding the types of retirement and deferred compensation plans available to CFP professionals in the United States:
- 98% have access to Defined Contributions plans (including 401(k))
- 48% receive Profit Sharing
- 17% are offered Stock Options
- 8% participate in Employee Stock Option Plans
- 6% have access to Pension plans
These benefits, in addition to base salaries, help CFP professionals plan for the future and should be considered when evaluating career opportunities.
CFP compensation structures
Finally, the compensation structure for a CFP is an important consideration too. This is because it impacts not only a CFP’s earnings but also the trust and relationships built with clients.
For example, salary-focused professionals may prefer fee-only models for their transparency, while those skilled in business development might excel under commission-based structures. Choosing the right model depends on career goals, ethical considerations, and client expectations.
Here are the three most common CFP compensation methods and the opportunities and challenges each brings:
1. Commission-based compensation
Commission-based CFPs earn income by recommending and selling specific financial products, such as insurance policies or mutual funds. This model often includes:
- Product Commissions: Advisors receive a percentage of the product’s value, such as a 3% commission on an annuity sale.
- Assets Under Management (AUM) Commissions: Some advisors charge a commission as a percentage of the assets they manage. For example, a 0.30% fee on $100,000 in AUM equates to $300 in earnings.
While potentially lucrative, this model may introduce conflicts of interest, as the advisor’s compensation depends on product sales.
2. Fee-only compensation
Fee-only CFPs charge clients directly for their services without receiving additional compensation from third parties. Common fee structures include:
- Flat fees: A set rate for specific services.
- Hourly rates: Charging based on time spent, ideal for clients needing periodic advice.
- AUM fees: A percentage of assets managed, typically around 1% annually. For example, managing $1 million in assets would yield $10,000 in fees per year.
Fee-only advisors are held to a fiduciary standard, meaning they must act in the client’s best interest. This model eliminates conflicts of interest, making it appealing to clients who value transparency.
3. Fee-based compensation
Fee-based CFPs combine fee-only and commission-based structures. They charge clients fees while also earning commissions for selling products.
For instance: An advisor may collect an AUM fee while receiving a commission for selling an insurance policy.
Although versatile, this model can present conflicts of interest, as advisors might have financial incentives to recommend specific products. However, under SEC Regulation, fee-based advisors are required to act in the client’s best interest.
CFP career options & salary breakdowns in the US
Becoming a Certified Financial Planner (CFP) opens up a wide range of career opportunities within the financial services industry. From client-facing roles to advisory positions and even leadership opportunities, there are many paths a CFP can pursue. Each role comes with its own set of responsibilities, challenges, and growth potential, which ultimately impacts the salary associated with it.
In this section, we’ll explore some of the typical career options available to CFP professionals, examining the job scopes and salary ranges for each role. The figures provided reflect average salaries in USD for positions based in the US, offering a clear picture of what one can expect in terms of compensation at various career stages.
Analyst (entry-level role)
With 0 to 3 years of experience, analysts can expect a typical compensation range of $60,000 to $70,500 annually.
This role is an excellent starting point for new CFPs, allowing them to learn the firm’s processes and gain practical experience in client management. Analysts are expected to be responsive and supportive, mastering their tasks while collaborating closely with advisors and other team members.
Analysts often assist senior advisors with client onboarding, helping to ensure a smooth process for new clients. Additionally, they handle routine client questions and service requests, providing vital support for the operations and investment teams.
As an Analyst in a financial planning firm, professionals are typically tasked with gathering and maintaining client data, ensuring that client information is accurately entered into various systems.
Associate advisor (mid-level role)
With 2 to 5 years of experience, typically closer to 5 years, Associate Advisors can expect to earn a compensation range of $70,500 to $79,613 annually. This position provides an excellent opportunity for career progression, offering exposure to more complex financial planning tasks and greater client interaction.
In terms of team responsibilities, Associate Advisors are expected to take on leadership by assigning projects to support staff and other Associate Advisors while supervising the quality and timeliness of their work.
They are also responsible for preparing materials for client meetings and conducting thorough research on potential investments. This role often involves answering routine client questions and service requests, ensuring that clients receive the support they need.
An Associate Advisor plays a crucial role in supporting the financial planning team by helping to draft financial plans, perform asset allocation analysis, and create custom analyses of clients’ financial decisions.
Service advisor (senior role)
Service Advisors are responsible for preparing materials for client meetings, performing research on investments, and answering both routine and more complex client questions. In addition to their client-focused duties, Service Advisors are expected to oversee and assign projects to Support and Associate Advisors, ensuring that work is completed with high quality and in a timely manner.
The Service Advisor role is an advanced position within the financial advisory field, encompassing a wide array of client-facing responsibilities. These professionals draft comprehensive financial plans, conduct asset allocation analysis, and create detailed custom analyses of financial decisions to help clients make informed choices.
With 3 to 7 years of experience, and a median of 9 years, professionals in this role can expect to earn between $80,000 and $122,500 annually. This position provides strong career growth opportunities, as individuals at this level are often on the path to becoming more senior advisors or taking on leadership roles in the firm.
Lead advisor / Managing director
The Lead Advisor or Managing Director role is a senior-level position in financial advisory firms, characterized by significant responsibility and leadership. Professionals in this role are tasked with managing client relationships, identifying and meeting their financial needs, and ensuring that clients receive the best possible financial guidance.
Lead Advisors take the lead in developing and presenting comprehensive financial plans to clients, overseeing the implementation of those plans, and ensuring that all financial decisions align with the client’s long-term objectives.
In addition to their client-facing responsibilities, Lead Advisors or Managing Directors are responsible for leading a team, managing performance, and ensuring the team meets its targets and responsibilities effectively.
This role typically requires 5 to 10 years of experience, with a median of 17 years, and offers a competitive compensation range of $126,945 to $213,126. These professionals are well-positioned for top-tier leadership roles within financial institutions, often guiding the firm’s strategy and growth.
Principal / Partner
The Principal or Partner role is one of the highest-ranking positions within a financial advisory firm, offering both leadership and strategic oversight. Professionals in this role manage premier client relationships, typically the most complex and high-value cases within the firm.
They assume the responsibilities of a Lead Advisor or Managing Director, overseeing the development and implementation of intricate financial plans, but with an added focus on large-scale client portfolios.
In addition to managing client relationships, Principals and Partners often consult with other senior advisors on complex cases, offering guidance and expertise. This role is also responsible for managing a team or potentially multiple teams, ensuring the overall success and growth of the firm.
Due to the high level of responsibility and experience required, professionals in this role typically earn between $170,000 and $346,500, with compensation reflecting their leadership and impact on the firm’s direction and client success.
CFP salary overview: Regional and country comparisons
North America
United States
Certified Financial Planners (CFPs) in the United States enjoy some of the highest salaries in the profession globally.
On average, entry-level positions start at approximately $50,000 annually, while experienced professionals can earn upwards of $120,000 to $150,000, depending on the location and specialization.
Major financial hubs like New York and San Francisco often see salaries on the higher end of the spectrum, driven by high demand and cost-of-living adjustments.
- Entry level: $60,000 to $70,500
- Intermediate level: $70,500 to $79,613
- Mid manager level: $80,000 to $122,500
- Senior management: $126,945 to $213,126
- Director level: $170,000 to $346,500
Canada
In Canada, CFPs also receive competitive compensation. Entry-level roles typically begin around CAD 40,000 to CAD 55,000 annually. Experienced planners can earn between CAD 75,000 and CAD 130,000.
Cities like Toronto and Vancouver tend to offer higher salaries due to their economic activity and financial sector prominence.
- Entry level: C$40,000 – C$55,000
- Intermediate level: C$55,000 – C$75,000
- Mid manager level: C$75,000 – C$95,000
- Senior management: C$95,000 – C$130,000
- Director level: C$120,000 – C$160,000
South America
Salaries for Certified Financial Planners (CFPs) in South America vary greatly across countries due to economic differences. While the figures in the table provide a general average, actual salaries can be higher or lower depending on the country and city, with larger financial hubs offering higher compensation.
For example, entry-level positions may earn as low as $10,000 USD in some countries, while senior roles can reach up to $80,000 USD or more in larger financial markets.
- Entry Level: $10,000 – $20,000
- Intermediate Level: $20,000 – $40,000
- Mid Manager Level: $40,000 – $60,000
- Senior Management: $60,000 – $80,000
- Director Level: $80,000 and above
Europe, Middle East, and Africa (EMEA)
The EMEA region shows significant variation in CFP salaries. Western European countries like Germany, France, and Switzerland typically offer higher salaries, ranging from €50,000 to €100,000 annually. In contrast, professionals in Eastern Europe and the Middle East might see lower compensation, often between €20,000 and €50,000, although these figures can vary based on local demand and economic conditions.
- Entry Level: €20,000 – €50,000
- Intermediate Level: €40,000 – €75,000
- Mid Manager Level: €50,000 – €85,000
- Senior Management: €70,000 – €100,000
- Director Level: €90,000 and above
United Kingdom
Certified Financial Planners (CFPs) are highly sought after in the UK, with competitive salaries reflecting their expertise.
Recent data shows that entry-level CFPs earn between £28,000 and £35,000 annually, while experienced professionals can command over £100,000.
Industry trends highlight that mid-career CFPs typically earn 31% more than entry-level peers, and senior roles see a significant 62% salary increase. These figures underline the lucrative career progression opportunities in financial planning.
- Entry Level: £28,000 – £35,000
- Intermediate Level: £40,000 – £60,000
- Mid Manager Level: £60,000 – £80,000
- Senior Management: £80,000 – £120,000
- Director Level: £100,000 and above
Asia Pacific (APAC)
Australia
The demand for Certified Financial Planners (CFPs) in Australia remains strong despite the declining number of professionals in the industry, which has decreased to 4,492 last year.
Entry-level salaries start at $70,000 AUD, while experienced professionals can earn over $150,000 AUD annually.
- Entry Level: $70,000 – $95,000 AUD
- Intermediate Level: $86,000 – $108,000 AUD
- Mid Manager Level: $95,000 – $132,000 AUD
- Senior Management: $120,000 – $180,000 AUD
- Director Level: $150,000 AUD and above
Singapore
Singapore, as one of the leading financial hubs in Asia, offers significant earning potential for Certified Financial Planners (CFPs).
Entry-level positions typically pay between $50,000 and $70,000 SGD annually, while professionals with more experience can expect to earn upwards of $120,000 SGD, particularly in wealth management and private banking roles.
For a more detailed breakdown of salaries at different career levels, please refer to the table below.
- Entry Level: $50,000 – $70,000 SGD
- Intermediate Level: $70,000 – $100,000 SGD
- Mid Manager Level: $100,000 – $120,000 SGD
- Senior Management: $120,000 – $150,000 SGD
- Director Level: $150,000 SGD and above
If you’re currently a CFP professional, does the ranges above CFP salary ranges fit your current situation? Leave a comment below.
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