A financial advisor’s career offers a promising blend of fulfilling work and attractive compensation. From offering retirement planning to advising on investments, financial advisors in the UK can significantly influence their clients’ financial health.
This article salary for financial advisor explores average earnings across different experience levels, how location impacts salary, and other key factors that determine a financial advisor’s compensation.
What is the Average Salary for Financial Advisor in the UK?
In the UK, financial advisors typically earn between £25,000 and £60,000 annually. Newcomers to the field tend to fall on the lower end of this range, while experienced professionals, particularly those in wealth management, can earn considerably more.
Additionally, bonuses and commissions can significantly impact total earnings, especially for advisors who handle high-value portfolios or manage high-net-worth clients.
Below is a summary of the normal wage range:
| Experience Level | Average Salary | Bonus/Commission |
| Entry-Level Advisor | £25,000 – £35,000 | Potential bonuses and commission based on performance. |
| Mid-Level Advisor | £45,000 – £65,000 | Higher bonuses based on client portfolios and performance. |
| Senior Financial Advisor | £70,000 – £100,000+ | Commissions and performance-related bonuses often substantial. |
At senior levels, experienced advisors managing large portfolios can significantly increase their overall compensation through performance bonuses and commissions, making the job highly lucrative.The earning potential for financial advisors can be heavily influenced by the specific services they provide.
For instance, those specialising in areas like wealth management or retirement planning often command higher fees due to the complexity and long-term nature of their advice. This, combined with the advisor’s experience and client base, sets the foundation for significant salary growth.
Compensation for Financial Advisors by Experience Level
Entry-Level Financial Advisor Salary
At the entry-level, financial advisors generally earn between £25,000 and £35,000. These early years are typically focused on building client relationships and developing a portfolio of clients, which can lead to higher earnings over time.
New advisors might also receive performance-based bonuses, particularly if they are involved in selling financial products or advising on investment portfolios.
Mid-Career and Experienced Advisors
With 5–10 years of experience, salaries can rise to £45,000 to £65,000. At this stage, advisors are likely to have established a more solid client base, often managing larger portfolios or providing specialised advice such as estate planning or tax-efficient investing.
Financial advisors with more experience are often tasked with more complex financial scenarios, allowing them to charge higher fees.
Chief Financial Advisor Salary
At the senior level, particularly for chief financial advisors, earnings can exceed £100,000 per year. These roles are typically held by individuals managing significant assets or those responsible for overseeing financial strategy within large firms.
In addition to base salaries, these senior advisors often receive a percentage of profits or hefty bonuses tied to the success of their financial strategies and client retention.
Here’s a more detailed look at compensation across different stages of a financial advisor’s career:
| Role | Salary Range | Typical Job Responsibilities |
| Entry-Level Financial Advisor | £25,000 – £35,000 | Building a client base, learning about financial products, and selling financial solutions. |
| Mid-Level Financial Advisor | £45,000 – £65,000 | Managing client portfolios, providing specialised advice, and achieving sales targets. |
| Senior/Chief Financial Advisor | £70,000 – £100,000+ | Overseeing large portfolios, handling high-net-worth clients, and creating long-term financial plans. |
| Top 10% Earners | £100,000+ | Specialising in wealth management or estate planning, with large, affluent client bases. |
As advisors gain more experience, they tend to manage larger portfolios and higher-value clients, leading to greater earnings potential.
Financial Advisor Pay Rate Based on Location
The geographical location in which a financial advisor operates plays a crucial role in determining their salary. Advisors based in London and the South East typically earn the highest salaries, with averages starting at around £40,000 and rising to over £70,000 in some cases.
This is largely due to the concentration of high-net-worth individuals and corporations in these areas, which increases the demand for financial advisory services.
In contrast, financial advisors based in the Midlands or Northern England might earn between £30,000 and £55,000, while those in Scotland and Wales may see starting salaries closer to £25,000.
These regions tend to have lower living costs and less concentrated wealth, leading to slightly lower salaries. However, even in these regions, experienced advisors managing large portfolios can still command competitive earnings.
| Region | Average Salary |
| London & South East | £40,000 – £70,000+ |
| Midlands | £30,000 – £55,000 |
| Northern England | £25,000 – £50,000 |
| Scotland & Wales | £25,000 – £45,000 |
Highest Paying Cities for Financial Advisors in the UK
Here’s a breakdown of the highest-paying cities for financial advisors, which showcases regional salary variations:
| City | Average Salary |
| Liverpool | £61,353 per year |
| Peterborough | £56,850 per year |
| Cardiff | £54,787 per year |
| London | £54,696 per year |
| Birmingham | £53,489 per year |
| Leeds | £48,434 per year |
| Leicester | £46,776 per year |
| Bristol | £37,829 per year |
| Blackburn | £37,476 per year |
Top Companies Hiring Financial Advisors in the UK
Here is a list of prominent companies in the UK that offer competitive salaries to financial advisors:
| Company | Salary Range | Median Salary |
| St. James’s Place | £36K – £78K per year | £50K |
| Foresters Financial | £24K – £49K per year | £24K |
| Wesleyan | £46K – £75K per year | £60K |
| Lloyds Banking Group | £25K – £63K per year | £39K |
| Barclays | £26K – £60K per year | £35K |
| HSBC | £27K – £52K per year | £40K |
| IDEX Consulting | £60K – £66K per year | £65K |
| Santander | £22K – £44K per year | £24K |
These figures highlight how salary ranges differ between financial institutions, with larger banks like HSBC and Barclays offering many open positions at competitive rates. St. James’s Place and IDEX Consulting also provide higher salary opportunities, especially for experienced advisors.
Factors Influencing Financial Advisor Income
Education and Certifications
The level of education and professional certifications an advisor holds can significantly influence their earning potential. For example, obtaining qualifications such as the Certified Financial Planner (CFP) or the Chartered Financial Planner designation can boost an advisor’s salary by 10-20%.
These certifications not only enhance credibility but also allow advisors to offer more specialised services, attracting higher-paying clients.
Clientele and Portfolios
The size and quality of a financial advisor’s clientele play a crucial role in their income. Advisors managing larger portfolios or serving high-net-worth individuals are likely to earn more through commission and performance-based bonuses.
Those advising corporate clients or working in wealth management often have access to more lucrative opportunities, significantly increasing their earnings potential.
Specialisations
Advisors who focus on specific financial areas, such as investment planning, retirement advice, or tax-efficient investing, can earn more than generalist advisors.
Specialisation allows them to provide higher-value services, particularly in areas like estate planning, where comprehensive knowledge is essential.
Starting Pay for Financial Advisors
The starting salary for a financial advisor typically ranges from £25,000 to £35,000. While this may seem modest, entry-level advisors often supplement their income with commissions, especially those selling financial products or insurance.
The ability to grow their client base early on also plays a critical role in setting the stage for future salary growth.
Salary Comparison: Financial Advisors vs Other Financial Roles
When compared to other financial roles, financial advisors generally earn more, especially once they have built a portfolio of clients. Here’s a quick comparison of salary ranges for related financial professions:
- Accountants: Typically earn £35,000 to £50,000. Their focus on auditing and managing accounts generally yields lower salaries compared to financial advisors, who deal with investment planning strategies and portfolio management.
- Investment Bankers: These professionals generally earn higher salaries, with mid-level bankers earning £70,000+. However, their roles often involve managing large corporate transactions and high-stakes financial deals.
- Insurance Agents: With median salaries around £30,000 to £45,000, insurance agents usually earn less than financial advisors due to the smaller transaction sizes involved in selling insurance products.
High-Earning Financial Advisors: What Sets Them Apart?
Financial advisors in the top 10% of earners can make over £100,000 annually. These high-income advisors typically manage large portfolios and have long-standing relationships with high-net-worth individuals or corporate clients.
Advisors working in wealth management often earn commissions on top of their base salary, driving their earnings even higher.
What sets these top earners apart is their ability to retain high-value clients and offer bespoke financial services. High-net-worth clients often require tailored investment strategies, which justifies the higher fees and commissions.
Future Outlook for Financial Advisor Salaries in the UK
The future for financial advisors in the UK is bright, with demand expected to grow by about 5% over the next few years. The aging population and increased need for retirement planning are key drivers of this growth.
Additionally, financial advisors who adapt to emerging technologies like fintech and robo-advisors will be better positioned to take advantage of new market opportunities, potentially increasing their earnings.
While automated tools are changing the landscape, they are unlikely to fully replace the human element that financial advisors bring, particularly when it comes to complex financial planning or managing large investment portfolios.
This hybrid approach by combining technology with personalised advice, will likely continue to be in demand, ensuring a steady rise in financial advisor salaries.
Conclusion
Financial advisors in the UK enjoy substantial earning potential, with salaries influenced by factors like experience, location, and specialisation.
While entry-level advisors earn a modest starting salary, the potential for growth is vast, especially for those specialising in high-demand areas like wealth management.
As the demand for financial planning services continues to grow, driven by an aging population and rising awareness of personal finance, the future looks promising for UK financial advisors.
Frequently Asked Questions (FAQs)
What is the salary range for financial advisors in the UK?
Salaries for financial advisors range from £25,000 for those just starting out to over £100,000 for senior advisors and wealth managers.
How much do entry-level financial advisors earn?
Entry-level financial advisors typically earn between £25,000 and £35,000. Commissions and bonuses may supplement their income.
Does location affect financial advisor salaries?
Yes, financial advisors in London and the South East earn more, often starting at £40,000, while those in rural areas earn slightly less, beginning at £25,000.
How do certifications impact earnings for financial advisors?
Certifications like the Certified Financial Planner (CFP) can increase earnings by 10-20%, as they demonstrate expertise and attract high-paying clients.
What is the salary difference between financial advisors and financial planners?
Financial planners often earn slightly less than advisors, with average salaries between £35,000 and £50,000, while advisors may earn higher through commissions.
Can financial advisors earn commissions?
Yes, many financial advisors earn commissions or bonuses based on performance, especially when dealing with investment products or insurance sales.
How does the salary of a financial advisor increase with experience?
Salaries increase significantly with experience. Entry-level advisors earn £25,000, but this can exceed £100,000 for senior advisors with established client bases.
