Financial services salaries jump up in 2014

AVERAGE earnings for people working in financial services distribution or support roles increased 12% to £63,937 in 2014.

Analysis by recruitment consultants BWD, which has undertaken its third annual salary survey, found that earnings – salary and benefits – had gone up by more than £7,000 in the region.

Nationally, basic salaries have increased as companies face greater competition recruiting the right people. In particular, total earnings for financial advisers rose 28% last year.

James Walker, a director at Leeds-based BWD, said: “2014 proved to be a strong and robust year for advisory firms as confidence returned, alongside with an optimism to capitalise on opportunities created by stronger economic growth, stock and housing markets.

“Firms are now upping their game on the recruitment front and increasing basic salaries in order to attract the real talent.”

Linked to this is an undersupply of people beginning their careers in the industry, which is driving average ages – and ultimately average salaries – upwards.

“It’s time the industry injected new blood into the profession, and the minimal flow of new advisers is now a real concern,” he added.

“Even allowing for the time lag in new entrants to the sector qualifying as advisers, this is now a crisis in the making.”

The average age of financial advisers has increased from 42 to 46, storing up problems for companies and their clients, warns Mr Walker.

He said: “Financial advisors are in a business that profoundly impacts the lives of their clients, and the increased price of financial advice linked to rising salaries in the industry may put essential advice out of the reach for many.”