Analysis of U.S. States by Percent Increase in Median Pay for Financial Advisors
The financial advising industry is constantly evolving, with factors like location, income, client preferences, and market characteristics playing a significant role in shaping the profession. A recent study by SmartAsset has shed light on the changing landscape of financial advising in the United States, particularly in terms of median pay increases for advisors in different states.
According to the study, personal financial advisors in Louisiana saw a remarkable 53% increase in pay over the course of one year. The median income for advisors in the state jumped from $70,220 in 2022 to $107,580 in 2023. Some specific locations within Louisiana experienced even more substantial pay increases, with Lafayette seeing a staggering 101% rise in median income and Baton Rouge witnessing a 71.9% increase. Interestingly, these pay hikes were often accompanied by a significant decrease in the number of advisors in the area.
On the flip side, eighteen states saw a decrease in advisor pay, with Oregon experiencing the largest drop at 31.0%. Other states like Montana, Michigan, Delaware, and South Dakota also saw double-digit decreases in median pay for financial advisors. However, amidst these fluctuations, Maine stood out with a 45% increase in the number of advisors in just one year, signaling a growing demand for financial expertise in the state.
Conversely, Oklahoma experienced a significant decline in the number of advisors, losing 43% of its workforce in just one year. Despite this drop, the median income for advisors in Oklahoma increased by 21.2% to $102,990. Louisiana, which saw the highest income growth at over 53%, also faced a substantial loss of advisors, indicating a complex interplay between pay increases and workforce dynamics in the financial advising industry.
Overall, the study highlights the dynamic nature of the financial advising profession, with location, income trends, and employment figures all playing a crucial role in shaping the landscape for advisors across the United States.
