"The decrease in pay for financial advisors is in line with sluggish pay growth for many other white-collar professions, from attorneys to marketing managers,” Zhao noted. “Lately, the fastest growth in pay has been at the bottom of the income spectrum for workers like cashiers, bank tellers and bartenders," he said.
Despite this "rough patch" for advisors, Zhao is not predicting that robo-advisors will replace humans anytime soon. Rather than competing with automated advisors, human financial advisors should leverage the technology to improve their efficiency, work with smaller and more clients and still provide personalized service, he said.
"We're currently at a transition point where the industry is trying to figure out how to balance technology and the human touch, but the outlook is still bright for financial advisors,” Zhao said.
One driver on the horizon, of course, will be the looming generational transfer of wealth in the US, as baby boomers pass along approximately $48 trillion in assets to heirs and charities.
Demand for financial advice will only going to increase as that wealth changes hands, the population ages and retirees live longer. Financial advisors will benefit from their “non-automatable skills like relationship building,” which is not easily replaced by robots, Zhao said.
“The industry will certainly evolve over the coming years so the opportunity will be there for advisors who can adapt quickly and leverage new technology," he said.
Advisors who obtain certification like a CFP designation will likely have the best career and income prospects, according to the Bureau of Labor Statistics. Advisor employment is projected to grow 15 percent from 2016 to 2026, well above average.