CFP® Certification at 50: What’s Next for Financial Planning?
The first CFP® professionals, a class of 42 men and women, were certified in 1973. Half a century later, CFP Board certifies nearly 99,000 CFP® professionals in the U.S. The financial planning profession has grown along with CFP® certification over the last 50 years, and it will continue to evolve over the next 50.
Perhaps the most significant changes ahead for the financial planning profession will arise from the “Great Wealth Transfer” that has already begun. According to financial market intelligence firm Cerulli Associates, Baby Boomers and the Silent Generation will pass down $84.4 trillion in assets during the next two decades. This wealth transfer will usher in a new wave of younger consumers who will benefit from competent, ethical advice to manage these assets.
Younger, more educated consumers view the world differently than previous generations and have distinct goals and priorities. They gravitate to financial planners who understand them and take a holistic approach aligned with their values.
As the financial planning profession shifts to meet future generations’ needs, it will continue to evolve from an emerging discipline to become an established profession. With maturity will come well-defined educational pathways, a robust body of research, a vibrant culture of pro bono service and volunteerism, and widespread understanding among consumers that CFP® certification is the standard for competent, ethical financial planning.
The COVID-19 pandemic not only reshaped where and how we work but also framed career and life goals for many in a whole new way. While most offices have reopened, what people demand from their working life and from employers will continue to affect every profession’s talent pipeline and future growth. Employment in personal financial planning is projected to grow 13% through 2032, which is much faster than average across all professions. CFP® professionals enjoy benefits that are priorities for many young people: work-life balance, remote work, high pay and growth potential.
Every decade, there will be more data and advanced tools available. But just as it was in the profession’s earliest days, good advice still comes down to trust and understanding between financial planners and their clients. That trusted relationship will continue to be the cornerstone for CFP® professionals for the next 50 years.
Read more about this topic in the full Industry Insights article from Kevin R. Keller, CAE, CFP Board’s CEO. Plus, learn more about the value of CFP® certification and how you can be part of the next fifty years of financial planning.