The idea that the IFA market is dominated by advisers approaching retirement has been exploded as a myth by FSA research, which shows the average age of advisers is 46.
Figures buried on page 95 of the FSA’s Financial Risk Outlook 2007 report show the average age of advisers is 46 – nine years younger than the commonly quoted figure of 55 – with two-thirds aged between 35 and 55.
The report says: “There have been concerns about the demographics of the sector, with the average age of financial advisers commonly quoted as being 55 years and the implications of this being a sudden outflow of advisers when they reach retirement.
“However, our research suggests the average age of advisers is closer to 46 which should diminish concerns over the impending retirement of many advisers.”
But the report says the industry may be failing to recruit and retain new talent.
Buckle Green & Partners paraplanner Mike Dyke, 26, says: “I am surprised that the average age is as young as 46. It is good to enter the industry early because you can train as a paraplanner first before giving advice.”
SimplyBiz chairman Ken Davy says: “I have never been concerned at the fears surrounding the age of IFAs because in my experience the age issue has always been exaggerated.”
Institute of Financial Planning communications director Sue Whitbread says: “We would expect the average age of advisers to continue to decrease.”