Advisers are positive about recommending careers in the profession but worried about the short-term future of the market, according to new research for Openwork.
Its study found 47% of advisers would encourage graduates and school leavers to pursue a career in financial planning while 46% would recommend it as a career choice for people changing their jobs.
But the research found they are concerned about growth in the sector this year – nearly three out of four advisers (72%) questioned believe the numbers of advisers across the profession will fall in 2020. 55% of those questioned say they intend to retire within five to 10 years.
They want to see action from the profession to promote the benefits of a career in financial advice – 84% believe providers need to work more closely with schools, colleges and universities to promote the sector while 79% say schools and universities should do much more to inform students about the profession.
Around 78% said they would like to see a coordinated approach by trade bodies and providers to support a recruitment drive.
Brexit does not appear to be driving motivations behind retiring, with only 6% of advisers agreeing that the uncertainty around the UK’s departure from the EU has increased the likelihood that they will retire in the next few years.
Mike Morrow, wealth & platform director at Openwork, said: “It remains hugely encouraging to see so many advisers recommending a career in financial advice, representing a strong endorsement of the profession.
“As the demand for advice continues to grow, it’s fantastic that advisers are endorsing the profession to both potential career changers and students. However, there remain concerns about whether schools, universities, providers and trade bodies are doing enough to ensure that there is a strong pipeline over the next few years of potential recruits.
“Moreover, with over half of those surveyed in this research saying they will retire in the next decade, the onus is very much on the on the profession to act quickly to ensure that people will always have access to qualified financial advice.
“At Openwork, we are focused on expanding access to financial advice by recruiting more advisers as well as training a new generation of advisers through our market leading Academy which in the past six years has enrolled more than 400 candidates.”