A guide to becoming a paraplanner

A career in paraplanning is a great way to build skills that matter in financial services – report writing, research and sharp analysis. It also helps you learn how the industry works, which makes it one of the best first steps onto the financial career ladder.

 Not sure if paraplanning is right for you? This guide explains what a paraplanner does, why people choose the role, what they earn and how to qualify – including the apprenticeship route into the profession.

What is a paraplanner role?

A paraplanner is responsible for carrying out the administrative tasks that a financial professional doesn’t have the time to do. This may include advanced tasks such as compiling extensive reports, conducting research and sourcing important documents or simple duties like handling invoices.

Although the financial professional may be able to do these tasks themselves, they may be time consuming, making it difficult for them to find time while focusing on the client’s other needs. Instead, a member of the financial planning team will carry out these tasks in what’s known as paraplanning.

It will also include a range of duties to fulfil the needs of the financial professional and their client such as grasping an understanding of risk profiles and client objectives, analysing cash flow, identifying opportunities for effective recommendations such as investment strategies and asset allocation, preparing suitability letters, filling out extensive forms, leading review meetings and ensuring compliance is adhered to and all corresponding paperwork is completed.

What makes a good paraplanner? 

Paraplanning today is varied, so there is no single type of person who fits. That said, the best paraplanners tend to be focused, analytical and very thorough. They enjoy research and are comfortable with process-driven, regulated work.

Strong paraplanners are also problem-solvers who can work on their own and as part of a team. They have an eye for detail and can take in a lot of information and summarise it clearly and quickly.

If you are just starting out, you won’t tick every box yet – and that’s fine. If you have the right instincts and personality, paraplanning is well worth considering.

Paraplanner vs financial adviser: what’s the difference?

People often mix up these two roles, so it helps to be clear. A financial adviser meets clients, gives the actual advice and takes responsibility for the recommendation. A paraplanner does the technical work that sits behind that advice – the research, analysis and reports that help the adviser recommend the right thing.

In short: the adviser owns the client relationship and the final advice, while the paraplanner makes sure that advice is well researched, accurate and compliant. Many people start in paraplanning and later move into advising, but plenty choose to stay and specialise – more on that below.

Why do you want to be a paraplanner?

Whether you hold lifelong aspirations of moving into a higher position in the financial services industry or are considering a career change into finance but don’t know quite where to start, working as a paraplanner can offer multiple core benefits.

As previously stated, paraplanning is typically based around a specific member of the finance team and involves carrying out administrative or simply time consuming tasks that the financial planner is unable to do. Working in this role carries many benefits including giving entry-level professionals in the financial services industry the ability to learn fundamental skills first-hand.

For instance, operating as a paraplanner means gaining knowledge and experience of analytical and technical processes, such as preparing and reviewing client files and recommending impactful changes. It also allows them to keep up to date with the latest information on compliance within the finance industry and gives them the ability to shadow an experienced colleague.

Although some people work as paraplanners in order to progress into other roles, paraplanning isn’t solely designed as a stepping stone. Many people specialise in paraplanning, with the role developing in recent times to offer a more client-facing approach and the ability to grow skills without necessarily having to change roles. Not only that, but there’s a demand for paraplanners, and operating as a reliable, effective and skilled paraplanner is a valuable asset to clients and potential employers.

The hidden advantages of being a paraplanner

Regardless of whether you see yourself as a career paraplanner or if you view this role as a stepping stone for another career path later down the line, there are many reasons more and more people each year are opting for a job in this often understated industry. Here are just a few hidden advantages of becoming a paraplanner.

• Earning potential

While you might assume there is big money to be made in financial advising, the truth is that in the current environment firms are not adverse to paying very competitive salaries for high-quality paraplanners too. In fact, according to The Financial Planner Life Podcast, the wage gap between paraplanners and financial advisors is starting to narrow with experienced paraplanners now earning as much as £70,000 per year. Indeed, with the role becoming ever more technical, time-consuming and client-facing, this is a high watermark that is also set to increase. 

• Industry revolution

The financial industry has been slowly aging from years with the average age of a financial adviser today being 51. On the back of this, it is expected that a significant 38 per cent of advisors are expected to retire within the next decade. This expected industry turnover means there are plenty of opportunities to be taken advantage of in this rapidly modernising industry. Pair this with the fact that training to become a paraplanner opens up clear and quick career progression opportunities (you can develop from a trainee paraplanner with a Certificate in Financial Planning to a senior paraplanners with full diplomas in between five and 10 years), there’s a well-trodden route of progression in this sector.

• Plenty of variety

So much more than the glorified administration role it once was viewed as, paraplanner jobs today are highly technical with day-to-day tasks that offer a broad range of variety. From conducting primary research into the financial state of businesses and industries of interest and keeping up-to-date with the latest sector regulatory changes to conducting due diligence and analysing bonds and share markets, every day is different in this role. Paraplanners will also typically be asked to regularly work as part of a team, as well as individually without supervision. With such a diverse range of daily tasks, there is no wonder the demand for trained paraplanners is increasing all the time.

How to become a paraplanner: a step-by-step route

There’s no single fixed path into paraplanning, but most people follow a route like this:

1. Get a foot in the door. Many paraplanners start in a financial services administration or support role, where you learn how a firm and its clients work.
2. Start studying for a recognised qualification. A Level 4 Diploma – such as the CII’s DipPFS or the LIBF’s DipFA – is the benchmark for the role.
3. Build hands-on experience. Work alongside an adviser on real cases – research, reports and reviews – to turn theory into practical skill.
4. Progress and specialise. From there you can move up to senior paraplanner, or train towards becoming a fully qualified financial planner.

An apprenticeship can combine several of these steps at once, letting you earn, learn and qualify together.

How to qualify to be a paraplanner

Like many roles in financial services, you don’t need a university degree to become a paraplanner. Some firms will even take on entry-level paraplanners with no formal qualification – but you’ll still be expected to study for one while you gain experience on the job.

A popular way to qualify is through an apprenticeship, which lets you earn a salary while you train and gain an industry-recognised qualification. Simply Academy offers the Level 4 Paraplanner & Financial Planner Apprenticeship, a 24-month blended-learning programme that includes a professional qualification (the CII’s DipPFS or the LIBF’s DipFA) and is designed for both new entrants and existing staff looking to progress.

(H3) The Level 4 Paraplanner & Financial Planner Apprenticeship explained

This apprenticeship is built for people who want to grow a career in financial planning – whether you’re new to the sector or already working in a firm and ready to move up. Over around 24 months of blended learning, you build the core knowledge, skills and behaviours that paraplanners and trainee advisers need.

Along the way you’ll learn how to research and analyse client information, draft reports and financial plans, manage client relationships and work within FCA rules. You also develop the everyday skills that matter just as much – clear communication, time management and attention to detail. Apprentices are paired with an industry-experienced mentor and complete a professional qualification linked to their role.

On completion, you’ll be well placed to progress into senior paraplanning or move towards becoming a fully qualified, and eventually Chartered, financial planner. You can read the full details on the Paraplanner & Financial Planner Apprenticeship page. Note that apprenticeships are open to people employed in a relevant role; if you’re not yet working in financial services, our other courses are a good place to start.

Get in touch today to find out more.