Financial Advisor Industry Statistics

1 min readLast updated May 9, 2024by Rachel Carey

Understand the demographics of financial advisors and clients, the duties of a financial advisor, and the trends that are affecting the industry and its growth.


  • The financial advisory industry is expected to grow to $261.95 billion in 2028. 

  • The growth is partially due to the current economic climate and the increased understanding of the importance of financial planning for retirement and medical purposes. 

  • The financial advisory industry is still primarily dominated by men, a significant proportion of whom are over 40. 

  • The highest-paid financial advisors live in Alaska. 

What does the financial advisor market size and growth look like? 

Financial advisor industry statistics show that the market size has steadily expanded in recent years.  

Industry leaders expect growth from 2023’s $207.76 billion to $215.92 billion in 2024 at a 4.4% Compound Annual Growth Rate (CAGR).  

The reasons for this growth include increasing wealth levels, globalization, market volatility, changing demographic trends, and, of course, the current economic conditions. 

Statistics also predict that the industry will expand at a CAGR of 5%, reaching $261.95 billion by 2028.  

Some of the most influential trends influencing this predicted growth are technological advancements, digital transformation, the focus on ESG investments, an increased number of robo-advisors, and personalized financial planning. 

North America dominates the financial advisory services market. The economic climate and an aging population are making people increasingly aware of the need to save, invest, and plan for retirement and medical emergencies. This awareness has opened the door for the growth within the sector

Prominent financial advisory services giants include Deloitte, Goldman Sachs Group Inc., Bank of America, BCG Group, JP Morgan Chase & Co, Morgan Stanley, and Blackrock

Statistics show that in 2022, the median salary of a financial advisor was $95,390. The highest-paid 25% earned $165,590, while the lowest-paid 25% made $61,960. 

What are a financial advisor’s duties and responsibilities? 

Financial advisors provide a vast array of services, with the primary objective of helping individuals or corporate clients structure long-term plans for creating wealth and managing risk.  

A financial advisor’s duties and responsibilities include: 

  • Advising clients of the various financial products and services applicable to them. 

  • Assessing their clients’ financial status to understand their requirements and structure a strong financial plan. 

  • Helping clients make well-informed financial decisions. 

  • Building a client base with long-lasting positive relationships. 

  • Selling stocks, bonds, and mutual funds. 

  • Staying up to date with financial trends to provide excellent and on-point financial advice 

  • Monitoring, managing, and updating clients’ financial plans to ensure profits. 

  • Ensuring compliance with all rules and regulations. 

  • Communicating with all stakeholders, including solicitors, valuers, providers, and other industry professionals. 

Client trends – who uses financial advisors and why? 

As the financial advisory market continues to expand, let's examine the demographics to gain some insight into the stakeholders.  

Around 60% of financial advisors prefer to work for private companies rather than public entities.  

According to Statista, only 35% of Americans have a financial advisor, with many people believing that it is too expensive or that financial advisors are only for the wealthy or middle-aged sector of the population. 

Those most likely to pay for a financial advisor include college graduates (41%) and people earning above $100,000 (55%).  

Men (35%) are more inclined than women (25%) to employ a paid advisor.  

If you consider the various generations, Millennials (31%) and Baby Boomers (36%) are more likely to hire one than Gen Zers (29%) and Gen Xers (24%).  

These same financial advisor industry statistics show that 60% of those working with an advisor reported they had employed one after a significant life event, such as marriage or divorce (14%) or inheriting or receiving large sums of money (11%). 

What is the impact of technology on the financial advisor industry? 

AI is progressing rapidly in the financial advisor industry and reshaping services and capabilities. Its sophistication can support financial advisors in various ways. 

AI’s ability to automate tasks can assist financial advisors with their duties and reduce the time they spend on admin, allowing them to focus more on their clients.  

AI is also excellent at observing patterns in massive datasets. A combination of the financial advisor’s knowledge of the client’s goals, the economic landscape, and AI’s capabilities could radically improve forecasting.  

AI can also improve communication with clients by sending personalized information to them.  

Tasks like generating leads for new business are also things advisors can release to these digital assistants. In addition, its ability to pick up patterns and anomalies amongst the enormous datasets could help detect fraudulent transactions. 

Robo advisory platforms offering virtual and simplified wealth management services are increasing across the financial industry.  

These robo-advisors draw investors because of their easy accessibility, cost-effectiveness, and convenience. However, only 40% of investors use robo-advisors to get credible advice.  

The global robo-advisory market is predicted to grow at a 30.5% CAGR between 2024 and 2030. 

What are the financial advisor demographics? 

Studies of the demographics of financial advisors show that in 2022, the USA had 15,114 SEC-registered financial advisors.  

Industry leaders project a 15% growth in the employment of personal financial advisors between 2021 and 2031.  

Demographic statistics indicate that only 27.7% of financial advisors are female, while 72.3% are male. 

The metropolitan areas showing the highest salaries in the financial advisory industry include Anchorage, New York, Las Vegas, Oshkosh, and Pittsburgh.  

The states paying the highest mean salaries are Alaska ($229,730), New York ($203,030), New Jersey ($174,490), Pennsylvania ($163,400), and Massachusetts ($154,930).  

According to a study on the demographics of financial advisors, 61% of financial advisors are older than 40 years. This is one of the few professions dominated by middle-aged people rather than younger cohorts. 

What is the financial advisor employment outlook? 

The Bureau of Labor Statistics (BLS) states that from 2021 to 2031, job opportunities for personal financial advisors are expected to increase as fast as employment in other occupations. The projected growth of 15% should see an increase of 50,900 jobs in this field. 

While 330,300 personal financial advisors were employed in 2021, the BLS predicts there will be 381,200 employed by 2031.  

This positive financial advisor employment outlook is partly due to the large number of baby boomers seeking retirement advice. 

Get expert financial advice 

Looking at the financial advisor industry statistics, we can see that it is a rapidly growing sector with the potential to generate billions in the next decade, making it a lucrative career.  

People are increasingly seeing the need for saving and investment, yet a large proportion of the population does not work with a financial advisor.  

Let Unbiased match you with a financial advisor who can offer expert financial advice and help you reach your financial goals.  

Senior Content Writer

Rachel Carey

Rachel is a Senior Content Writer at Unbiased. She has nearly a decade of experience writing and producing content across a range of different sectors.