Financial advisers’ average total earnings rose “significantly” in 2024, despite a decrease in average basic salary, according to a report from financial services recruitment firm Paul Harper Search.

In 2024, advisers' average total earnings increased by 12 per cent to just under £110,000, with 52 per cent of financial planners earning above this threshold.

However, the average basic salary saw a slight decline from £79,591 in 2023 to £77,786 in 2024.

Furthermore, the average fee generation per adviser fell by 3.5 per cent, decreasing from £207,302 in 2023 to £200,012 this year.

Paul Harper Search stated that the findings reflected a growing emphasis on performance-based remuneration.

The report also highlighted that there had been some progress on closing the gender pay gap within the industry, with women in financial planning earning an average total of £115,955 compared to their male counterparts earning an average of £107,714.

Female advisers’ average total earnings have surged by 52 per cent since 2021, while men’s earnings grew by 14 per cent over the same period.

However, the report found that women’s average basic salaries remained 9 per cent lower than men’s, widening the gap following progress being seen in 2023.

Paul Harper Search also warned of a “looming crisis” in talent shortage, with the industry continuing to face challenges in attracting and retaining young advisers.

The firm said it had identified a “worrying trend” of young talent leaving the profession, stating that its report underscored the urgent need for firms to employ and nurture young advisers by providing access to client banks and mentorship.

Almost nine in 10 (87 per cent) respondents said that work/life balance was ‘extremely important’ or ‘very important’ in deciding whether to stay with an employer, while 82 per cent said company culture was ‘extremely important’.

The report emphasised that company culture played a pivotal role in adviser retention, and called for firms to offer tailored incentives to drive performance and improve new business acquisition.

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