The caption of this photo is mostly in jest. These men are not financial advisors. At least, not all of them — I’m certain that at least one of them is someone who dispenses financial advice, in some sense of the word(s). But, right, to business: How much do financial advisors earn in South Africa?
Of course, it depends on a number of the standard variables: amount of experience, how smart you are, how lucky, and so on. But that doesn’t mean we can’t say anything about it.
PayScale seems to have the best data, with a poll of 168 financial advisors. They report that the median salary for a financial advisor in South Africa is R146,632.
But it depends where you work. Sanlam’s median salary (based off a paltry sample size of 9) is around R160k, while the median salary at Liberty Life Group could be as high as R250k. On the other hand, companies like Old Mutual South Africa and Old Mutual PLC pay less, with median salaries around R100k.
These numbers seem in line with job listings for financial advisors in South Africa. Sanlam, for instance, advertises a salary of R10k – R50k per month — which agrees with the above numbers, although their ads may exaggerate the realities of the pay somewhat. A company known as Calreg says that they’ll even pay some R7,500 per week for a broker/financial advisor position. And there are quite a few less lucrative offers listed as well.
More evidence comes from Skillsportal, which reports that pay is structured around the amount that an advisor sells. So, if someone works at Sanlam for 3 years, specializes in the middle class, and sells 8-12 products each month, they can expect to make around R20k. For the first 12 months, one can expect to make less than that.
That salary is actually on the higher side of things, but that makes sense given that you need more than a year of experience to reach those kind of earnings. On the other hand, given that the median salary is relatively low when compared to the potential earnings of someone with more experience, that might imply that many financial advisors are not sticking it out. Thus, there might be many junior financial advisors, but few with significant experience.