Financial planner

What does a financial planner do?

• Meet clients to understand their goals, finances and attitude to risk.
• Analyse income, spending, debts, savings, investments, pensions and insurance.
• Build financial plans and explain the options in plain language.
• Recommend suitable products and record why they suit each client.
• Review plans regularly as clients' lives and markets change.
• Follow rules on suitability, fees, disclosure and anti-money laundering checks.
• Build a client base through referrals and networking.

Where do they work?

Financial planners work for independent advice firms, banks, wealth management firms, insurers and accounting firms. Many are self-employed or partners in small practices. The work is office-based, with client meetings in person or online, and some meetings take place in the evening to suit clients. Depending on the country and the firm, planners may be paid a salary, client fees, commission or a mix, and income can depend on building a client base.

What skills do you need?

• Knowledge of investments, pensions, tax and insurance
• Financial analysis and planning
• Listening and building trust
• Explaining complex ideas simply
• Ethics and regulatory compliance
• Relationship building and sales
• Financial planning software
• Attention to detail

Official skills profile (ESCO)

Essential skills listed for this occupation in ESCO, the European Commission's multilingual classification of skills and occupations.

• offer financial services
• advise on financial matters
• obtain financial information
• apply technical communication skills
• synthesise financial information
• provide financial product information
• identify customer's needs
• review investment portfolios
• maintain credit history of clients
• assess risks of clients' assets
• create a financial plan
• budget for financial needs

Essential knowledge: customer service · financial forecasting · banking activities · economics · investment analysis · financial markets · modern portfolio theory

How do you become a financial planner?

A degree in finance, economics, accounting or business is common but not always required. Many people start in support roles, such as client assistant or paraplanner, before becoming advisers. The key step is passing the qualifications your national regulator requires and becoming authorised, or working for an authorised firm. Requirements differ: for example, the United States uses licensing exams and registration with state or federal regulators, while Australia requires an approved degree, an exam and a supervised professional year. Many planners also gain the Certified Financial Planner (CFP) certification, which is available in many countries. People from banking, insurance and accounting often move in.

1. Degree and trainee role. A degree in finance, economics, accounting or financial planning gives you a strong technical base. Some degrees are approved by professional or regulatory bodies, which means they count towards the qualifications you need. Graduates often join banks or advice firms as trainees or paraplanners and qualify as advisers over time.
2. Move from banking, insurance or accounting. People who already work in a bank, insurer or accounting firm often move into financial planning. They take the exams required by the regulator and learn to give full advice under supervision. Existing knowledge of financial products and experience with clients make the change easier.
3. Professional certification. The CFP certification is offered through national bodies in many countries and is widely respected. It usually requires education, an exam, work experience and a commitment to ethics. It is voluntary in most places, but it shows clients and employers a high standard of knowledge and conduct.

Degrees that lead to this career

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• Business management

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Do you need a licence to work as a financial planner?

Financial planning is a licensed activity in most countries. Before you give financial advice to the public, you usually need to pass approved exams and be authorised or registered with the national financial regulator, either personally or through your firm. You must then meet ongoing training, conduct and record-keeping rules. Some countries protect titles such as financial adviser or financial planner, and some restrict commission payments. Requirements vary a lot, so check your national regulator's rules.

How much does a financial planner earn?

Pay in the United States

• $105,070Median annual wage, May 2025
• $50,190–$357,020Range from the lowest-paid 10% to the highest-paid 10%
• 266.8KPeople employed in the US

US Bureau of Labor Statistics, Occupational Employment and Wage Statistics, SOC 13-2052, May 2025. National estimates across all industries; excludes the self-employed.

Earnings of Professionals around the world

Most countries do not publish pay for single job titles. The International Labour Organization collects median monthly earnings for broad occupation groups instead. This career belongs to ISCO-08 major group 2, "Professionals". The table covers the whole group, which includes financial planner and many other occupations.

Source: ILOSTAT, median monthly earnings of employees, latest year available. PPP$ adjusts for price differences between countries so figures can be compared. "vs all employees" compares the group's median with the median for all occupations in the same country.

Career progression

1. Client assistant or paraplanner
2. Trainee or junior adviser
3. Financial planner
4. Senior planner or wealth manager
5. Partner or owner of an advice firm

Job outlook

Ageing populations, more personal responsibility for retirement savings and growing wealth in many countries increase the need for financial advice. At the same time, digital platforms and automated advice services now handle many simple investment decisions, so human planners focus more on complex situations and long-term relationships. Stricter qualification rules in some countries have reduced the number of advisers. Building a client base takes time, and trust and reputation are essential.

Questions about becoming a financial planner

What qualifications do you need to become a financial planner?

It depends on the country. Most regulators require you to pass approved exams before advising the public, and some also require a relevant degree or supervised experience. You then need to be authorised or work for an authorised firm. Many planners add a voluntary certification such as the CFP to show a higher level of expertise.

What is the difference between a financial planner and a financial adviser?

The titles are often used in the same way. In general, a financial planner looks at a client's whole financial situation and long-term goals, while a financial adviser may focus on recommending specific products such as investments, pensions or insurance. In some countries the titles have legal meanings, so check how your regulator uses them.

Do financial advisers need a licence?

In most countries, yes. Giving personal financial advice to the public is regulated to protect consumers, so advisers must pass approved exams and be authorised or registered, personally or through their firm. The name of the licence and the exams differ between countries. Giving advice without the right authorisation can be a serious offence.

Is financial planning a good career?

It can be rewarding if you enjoy working with people and helping them reach their goals. There is steady demand for trusted advice, and experienced planners can run their own firms. However, qualification requirements are demanding, building a client base takes time, and in some roles your income depends on sales or fees. Rules also change regularly.

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Sources

1. US Bureau of Labor Statistics — Occupational Employment and Wage Statistics — SOC 13-2052, national estimates, May 2025
2. ILOSTAT — Median monthly earnings of employees by occupation — ISCO-08 major groups, latest year per country
3. European Commission — ESCO occupation profile — ESCO code 2412.4

How to cite this page: CourseToJob (2026). How to become a financial planner: degrees, skills and salary. https://coursetojob.com/careers/financial-planner/ (accessed September 26, 2026)

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