Findings published today by the lang cat from its annual State of the Advice Nation (SOTAN) report reveal that paraplanners increasingly view the profession as a career path in its own right.
Contrary to the stereotypical view of paraplanners transitioning into advisory roles, twice as many see their future within paraplanning (51%) rather than moving into advice (24%). This indicates a strong desire for recognition and career development within their current roles.
When asked about remuneration, however, the majority (75%) agreed that they are often renumerated unfairly and don’t share in the wider success of the firm.
Paraplanning as a career in its own right
Hampered by administration
Reflecting last year’s findings, half of paraplanners (49%) feel their role is hampered by provider administration, and state this is the biggest inhibitor of their day-to-day work. This was closely followed (42%) by clarity on work and their relationship with advisers.
Embracing AI
On the upside, paraplanners remain bullish about the adoption of artificial intelligence (AI), with most confident that it will present opportunities rather than a threat. Similarly, 39% believe the biggest impact on their profession will be of tech as an enabler that delivers benefits like slicker processes.
Essential skills
On another positive note, paraplanners and business owners largely agree on the essential skills that paraplanners bring to the table, such as technical competency, report writing, and research skills. However, 44% of paraplanners also emphasize their communication skills, and around 50% believe they could harness these more to be more client facing.
Involvement in key tasks
In terms of their daily tasks, our findings show paraplanners play a critical role in suitability report construction, cashflow modeling, and the wider client review process. However, their involvement in Centralized Investment Propositions (CIPs) and Centralized Retirement Propositions (CRPs) varies significantly across firms.
Commenting on the findings, Steven Nelson, Insights director at the lang cat said: “Paraplanners are often the unsung heroes of the advice sector and for that reason, the lang cat wants to give them a voice. Continuing our work from last year, we actively targeted the paraplanning profession to make sure we fairly represented their views among the wider group of 501 professionals who took part. What’s clear is the passion for paraplanning as a career runs deep. Our research showed that around 70% of respondents believe there should be a dedicated Chartered pathway. Alongside the fact that half feel they could take their communication skills even further and play a more client-facing role. All signs of a confident, ambitious profession that knows it’s worth and is ready to grow.”
“The issue of renumeration and the dissatisfaction surrounding it was a real mic drop moment for us and hopefully provides some real food for thought for the wider industry that is so dependent on paraplanners’ skills and expertise.”
