A paraplanner comes at a cost to the business, as recruitment, training, salary and benefits all need to be factored in. The cost of this support varies throughout the UK.
Linda Todd, head of operations at Bankhall, says the salaries and outsourced costs of a paraplanner very much depends on skills, experience and qualifications.
She says: “Paraplanners who are Chartered or Fellows will command a salary which will reflect their skills and talents, whereas a less experienced paraplanner would expect much less.”
However, Emma Watson, technical development and quality specialist for Towry, says a good paraplanner can become the keystone of a client-focused, commercial planning and advice service.
Far from being a financial burden on the business, effective use of a paraplanner can enable an adviser to go out and reap far more money than they would have been able to without this sort of support.
Ms Watson says the cost varies dependant on location, experience and qualifications.
She says: “You can expect to pay around £35,000 per annum for a Diploma qualified, experienced paraplanner.
“This can rise to in excess of £40,000 a year for a paraplanner who is also authorised to give advice to clients.”
The cost of a paraplanner ultimately depends on what you want them to do, says Damian Davies, director and founder of Timebank.
He says a hardcore technician may want to be better rewarded than a water carrier, to reflect their learning.
In the same breath, Mr Davies says a really efficient, productive ‘water carrier’ may help in delivering service to far more clients than a hardcore technician.
Mr Davies says advisers should remember that paraplanners are often more rewarded by lifestyle than targets and bonuses, and at his company he has found the key to retention and attracting top paraplanners is understanding “people work to live and not the other way around.”
