How much do certified financial planners earn?

Individuals with the Certified Financial Planner (CFP) designation enjoy an above-average salary range as well as promising current and future job availability. The salary range for a certified financial planner should be considered in a broad context, including experience, length of time working in the field, and geographic location.

As with many job titles, the average income of those who earn the CFP varies. This overview article provides current national and regional average salaries for a Certified Financial Planner.

Key insights

The Certified Financial Planner (CFP) is a degree in the financial industry that is earned after passing a series of rigorous exams.
Individuals with a CFP degree can be expected to be knowledgeable about topics such as retirement planning, portfolio construction, investing, and insurance.
CFP professionals can expect an increase in income compared to those without such a designation.

Requirements for the CFP designation

To put salary data into context, it’s helpful to examine the minimum qualifications for this job. The CFP designation is achieved through a person’s education, work experience and test results. This designation is administered by the CFP Board. Becoming a CFP requires at least a bachelor’s degree, specialized financial planning courses, and three years of experience.

After meeting the minimum criteria, the CFP candidate must take the CFP certification exam, which measures the candidate’s competency in financial planning scenarios and professional ethics.

Experience impacts CFP salary

National salaries for CFPs are largely influenced by the experience of the individual. According to payscale.com, a crowdsourced salary information provider, an entry-level CFP with one to four years of experience costs an average of about $68,628 per year. At the other end of the spectrum, the CFP earns an average salary of $103,994 at the end of their career with more than 20 years of experience.

The CFP is one of the fastest-growing and best-paying fields, with job opportunities expected to increase by 17% annually from 2023 to 2033. The primary driver of CFP employment growth is the aging population. Large numbers of baby boomers are expected to retire in the next decade, which will likely create a need for additional planning advice from financial advisors. The Bureau of Labor Statistics reports that the industry can expect to add 27,000 new workers between 2023 and 2033.

How long does it take to get the CFP designation?

According to the CFP Board, successful candidates can expect to earn certification on average between 18 and 24 months.

What is the success rate on the CFP exam?

The latest statistics from the CFP Board show that the CFP exam pass rate is 65% of test takers.

What career paths do CFP professionals pursue?

With the CFP certification, financial professionals can enter the fields of financial planning, financial consulting, brokerage, insurance, estate planning, and money management, among others.

The conclusion

Combining above-average salaries with high job satisfaction and increasing job availability, certified financial planner is an outstanding career path for the financially minded individual. The CFP Board website provides detailed information about becoming a Certified Financial Planner and provides instructions on how to get started in the career.