Advisers experiencing increased career optimism

In 2018, 41% advisers and firms expect the number employed across the industry to grow in the year ahead and 79% are happy to recommend financial advice as a career.

The findings show a huge change from 2016, when just 11% were predicting growth in adviser numbers and only 44% would recommend advice as career. Last year nearly two out of five (38%) predicted growth while 70% recommended advice as a career.

However, there are worries about where new recruits are going to come from, with just 40% saying there are enough new advisers coming into the profession compared with 48% in 2017.

Despite this, there is plenty of work for new advisers. A quarter of those questioned say they are working more than 50 hours a week compared with just 14% in 2017. Prudential’s research found the rise in working hours is driven by a combination of business growth as well as compliance and regulation.

Nearly half of advisers (48%) say business growth has meant longer hours while 44% say increasing compliance requirements mean they put in longer hours with 30% saying the impact of tax and regulatory changes has lengthened their working week.

Prudential’s research found 81% of advisers believe schools and universities need to do more to promote financial advice as a career – and more than three out of four (77%) want providers to develop their own recruitment programmes.

Vince Smith-Hughes, director of specialist business support at Prudential, said: “Demand for advice is growing and that is reflected in the increasing optimism about the future from advisers and the hours they work. The numbers happy to recommend advice as a career is a great story to tell for the industry but there are concerns.

"Key among these concerns are around where new recruits will come from. However, the recent demand for advice shows a vibrant profession, with some advisers running dedicated graduate programs while others are naturally transitioning paraplanners across to advising."