10 things your paraplanner is thinking about that might surprise you.

Paraplanning is a great place for people looking to learn the skills needed to become an adviser.

Paraplanners today, however, don’t all want to move into advice.  The research, by the lang cat​, indicates a strong desire for recognition and career development within their current roles. ​

1. In fact, twice as many see their future within paraplanning (51%) rather than moving into advice (24%), according to new research.

2. A large majority (70%) of paraplanners also believe there should be a dedicated Chartered pathway for their profession.

3. When asked about remuneration, for example, there was considerable dissatisfaction. The majority (75%) agreed they are often remunerated unfairly and don’t share in the wider success of the firm.

4. Provider administration woes, often the bug bear of financial advisers, is a frustration shared by paraplanners.  

5. Half of paraplanners (49%) feel their role is hampered by provider administration, and state this is the biggest inhibitor of their day-to-day work – echoing last year’s findings from the same survey.

6. This was closely followed (42%) by clarity on work and their relationship with advisers.

7. On the upside, paraplanners remain bullish about the adoption of artificial intelligence (AI), with most confident that it will present opportunities rather than a threat. ​  

8. Similarly, 39% believe the biggest impact on their profession will be of tech as an enabler that delivers benefits like slicker processes.

9. On another positive note, paraplanners and business owners largely agree on the essential skills that paraplanners bring to the table, such as technical competency, report writing, and research skills.  

10. However, a large proportion of paraplanners feel their skill sets are being underused.  More than two fifths (44%) emphasised their communication skills, and around 50% believe they could harness these more to be more client facing.

In terms of their daily tasks, the findings show paraplanners play a critical role in suitability report construction, cashflow modelling, and the wider client review process. ​  

However, their involvement in Centralized Investment Propositions (CIPs) and Centralized Retirement Propositions (CRPs) varies significantly across firms.

Commenting on the findings, Steven Nelson, insights director at the lang cat said: “Paraplanners are often the unsung heroes of the advice sector. What’s clear is the passion for paraplanning as a career runs deep.  

“Our research showed that around 70% of respondents believe there should be a dedicated Chartered pathway. Alongside the fact that half feel they could take their communication skills even further and play a more client-facing role. All signs of a confident, ambitious profession that knows its worth and is ready to grow.”

“The issue of remuneration and the dissatisfaction surrounding it was a real mic drop moment for us and hopefully provides some real food for thought for the wider industry that is so dependent on paraplanners’ skills and expertise.”

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