Strained friendships, rejection, harassment: New joiners find it tough going as financial advisers

Despite knowing that his degree could land him a relatively well-paying job after graduation, data scientist graduate Kyler How found himself hesitant to look for a nine-to-five role. 

Realising that he would spend years working for someone else as he slowly climbed the corporate ladder made him feel trapped. 

But with little capital to start something of his own, the 25-year-old knew he had few career choices that would offer him autonomy, flexibility and a generous pay cheque. 

He decided not to apply for any desk-bound jobs and instead went for a financial advisory (FA) internship.

"Financial advisory ticks quite a few boxes for me: It's future-proof, offers good money, allows me to be self-employed, and serves as a stepping stone for bigger endeavours," he said of making the choice to join the industry this year, eventually securing a full-time position in July.

In Singapore, financial advisers are generally self-employed, though they typically operate under one firm that oversees compliance and training.

A steady stream of young professionals and fresh graduates like Mr How have been joining the industry over the last few years and making up a significant proportion of insurance firms' workforce. 

Insurance company Prudential said that 35 per cent of its 5,400 financial representatives are aged 28 and below, and the number of new joiners aged 20 to 28 rose by 50 per cent between 2022 and 2024.

Data from other insurance companies suggests that young professionals continue to form a significant portion of new joiners in the financial advisory industry.

AIA has observed that 60 per cent of its new joiners are aged 21 to 30, a proportion that has been consistent over the past three years.

"The upward trend of young adults aged 21 to 30 entering the financial advisory industry over the past five years is an industry-wide observation," said Mr Alvin Fu, chief distribution officer at AIA Singapore.

Another firm, Income Insurance, reported a similar trend with their percentage of new financial advisers under the age of 30 at around 58 per cent from 2020 to 2024. 

"We're seeing a clear mindset shift among this generation where many are no longer motivated by traditional office structures or fixed nine-to-six jobs," said Mr Tan Hong Tau, chief executive of Manulife Financial Advisers (Manulife FA), who declined to provide details on the proportion of the company's new joiners aged 30 and below. 

FLEXIBLE SCHEDULES, AUTONOMY, POTENTIAL EARNINGS  

For many young professionals, the decision to become a financial adviser was not driven by a single factor.

Among the common reasons cited however were flexible timings, the autonomy to shape their career in their own way and the earning potential.  

Ms Slyvia Ng, 27, who switched from marketing to a career she has now held for over a year, said: "For me, it was largely about the money, but also the freedom and flexibility. I wanted to be able to plan my schedule and decide how I wanted to run my business."

AIA said that its consultants earned an average annual income of about S$94,500 (US$72,479) in 2024 across all ages and experience levels.

Earnings vary widely depending on factors such as individual performance and client base and new consultants typically take more than two years to reach this average annual income, it added.

High performers can also be promoted to the rank of financial services manager where they take on a larger job scope including mentoring other consultants after around two years, earning roughly S$200,000 annually.

For Mr How, it was the flexibility of time that appealed to him especially after he saw how his mentor had diversified his income stream beyond financial advisory by owning other businesses. He encouraged others to do the same and treat their FA work as a second income stream.

He found that many advisers around him also run their own businesses or pursue personal interests such as fitness coaching alongside their FA work.

Mr Rom Lee, chief agency officer (CAO) Prudential Singapore said that financial advisers enjoy a greater degree of flexibility and job independence compared with other roles, allowing them to "choose how they spend their time" as well as fulfil their entrepreneurial ambitions.

The challenging job market is another reason young workers are turning to the industry.

Mr How recalled hearing from peers about relentless job application rejections and poor work-life balance, which made self-employment seem like a promising path.

For some, like Ms Charmain Chong, 23, personal experiences played a significant role too. Her first encounter with the concept of insurance was at the age of 19, when her mother suffered a stroke.

"We didn't really know what insurance was about, but the agent sat me down and ran me through what my mum was covered for, which gave me reassurance," she recalled.

The experience left a lasting impression, even before she had to decide whether to continue down the electrical engineering route she had started in polytechnic.

After graduation, Ms Chong found herself at a crossroads. She was unsure about continuing in engineering, which she saw as a male-dominated field and potentially limiting without further studies. She also worried about having to face the challenge of a mid-career switch later on.

Curious about alternative paths, she decided to try out a personal assistant role at a financial advisory firm. 

Around the same time, further family health crises – her second aunt's stroke, her grandfather's third cancer diagnosis, and her grandmother's first – reinforced her interest in the industry. 

Four years later in 2023, she officially began her career as a financial adviser. 

"All of this built the momentum for me to enter this line," she said.

"Now, I have a very strong conviction that I'm here to serve and help my clients."

While some enter financial advisory as a deliberate choice shaped by personal experiences, others stumble into it through recruitment pitches and the promise of financial know-how.

Across university group chats, glossy recruitment messages often advertise internships promising opportunities to learn about financial planning and personal growth.

Ryan, who declined to give his full name as he is still working in the finance industry, was a first-year business student at a local university when he saw one of these advertisements on Telegram, which proved too intriguing to ignore.

The post highlighted the chance to gain financial literacy and wealth management skills – competencies that seemed directly relevant to his course of study.

"I honestly didn't realise it was an FA role at first, I just wanted to be more financially literate," said the 25-year-old. 

As part of the programme, he completed several Capital Markets and Financial Advisory Services (CMFAS) examinations, eventually earning his licence and stepping into the role of a FA for seven months while still a student.

LOST FRIENDSHIPS, IRATE CLIENTS  

From the outside, young FAs often appear to lead glamorous lives – their social media feeds showcasing award ceremonies, networking events, and big-ticket milestones such as new cars or condominium units. 

Financial advisers CNA TODAY spoke to however said that the work often carries pressures and challenges hidden beneath its polished exterior.

One of the first hurdles is public distrust, largely fuelled by a handful of "black sheep" with questionable sales practices.

The Financial Industry Disputes Resolution Centre (FIDReC) reported that the number of claims handled by the centre involving licensed financial advisers and insurance brokers rose from 25 in 2023 to 80 this year, as at the end of October.

Of the total cases FIDReC handled up to October this year, about 13 per cent involved market conduct issues such as misselling or misrepresentation, though these were not limited to financial advisory cases.

Like many in the field, Ms Ng has had to contend with the fallout from others' missteps – agents who missell products to clients unfamiliar with the plans, especially seniors. 

"As a result, some elderly might even shout at you when you approach them, and just because you represent the same firm, you end up bearing the repercussions of other agents' mistakes," Ms Ng said.

Public distrust aside, there's also the need to have a thick skin to deal with the high rate of rejection.  

Ms Chee Kai Xin, 23, currently a university student FA, knows this struggle well. 

When she first joined the industry in 2024, she avoided approaching her "warm market" – her direct network of friends and family – and opted instead for roadshows.

The experience was gruelling: For three months, she struggled to earn even S$1,000 a month, covering the cost of renting a booth out of her own pocket.

"It was so stressful that I cried every morning when I had to go for the roadshow," Ms Chee recalled. 

"The cold market is tough, you need a long time to build trust. Can you imagine talking to a random stranger and having to tell them your income?"

The pressure was enough for her to quit initially. But with encouragement from a classmate who was also a student adviser, she rejoined the field, determined to try again.

While financial advisory work is often portrayed as a path to easy earnings, the reality is far more demanding than just having a few conversations with clients over coffee. 

"In a corporate job, you're usually fine as long as you don't mess up. Here, we need to perform well to even earn," said Ms Chee. 

She added that closing a deal can take about a month on average, with more complex cases, such as family planning, sometimes stretching over a year.

Ms Ng echoed the sentiment. 

"A lot more goes into this than people realise. You need to let clients build trust at their own pace, which can take a long time – sometimes even a year," she said.

Meanwhile, Ryan, who was lured to the industry by recruitment advertisements, found that day-to-day work differed from expectations of the lavish lifestyle promised during introductory sessions.

"Within the culture, we were often encouraged to post weekend updates of ourselves at our laptops to show we were grinding – practices that, to some extent, felt performative to me," he said.

He said that despite the messaging that the industry was there to help clients, it turned out to be more sales-focused than he had expected.

New FAs often set targets with their directors, and in one instance, Ryan recalled being asked to call 100 personal contacts while a supervisor watched.

After seven months, he decided to leave as he didn't feel he was truly helping anyone.

"I just didn't enjoy what I was doing or how it was making me feel," he said. 

Long hours and high sales target aside, there's the added issue of harassment for female FAs who have to frequently interact with clients one-on-one. 

Ms Ng noted that some of her female colleagues receive unsolicited messages every day from prospects, often using inappropriate terms of endearment such as "babe".

"It's unfortunately very common for female advisers to face this, but I always try to stand up for myself," she said.

And finally, there is the challenge that can cut deepest: seeing friendships fray under the weight of career-related misconceptions.

Ms Chee described how some friends were hesitant to admit they were uncomfortable with her new role as a financial adviser.

While a few eventually became open to having an honest conversation about her job, others gradually stopped texting her.

For Ryan, the impact was even more personal – moments when he genuinely wanted to catch up with friends were sometimes misread as attempts to prospect them.

"By the third friendship I lost, I was done (with this job)."

COMMON FOR YOUNG ADVISERS TO LEAVE EARLY

Given the challenging nature of the job, the high joining rate for young graduates is offset by young FAs leaving the industry burnt out and disillusioned. 

Insurers GE and Manulife told CNA TODAY that they did not track retention rates by age groups while Income declined to disclose their retention rate. Meanwhile, AIA said that their first-year retention rate was 85 per cent. 

Prudential Singapore's Mr Lee said the first two years are crucial for new joiners to decide if the role is right for them and it can be "common for young FAs to leave early".

"Generally, retention among younger FAs is relatively lower than other profiles, as many are still exploring career options before settling on a path," said Ms Jesslyn Tan, chief executive of Great Eastern Financial Advisers (GEFA).

But for those who stay, the conviction is unwavering.

Ms Ng reflected that even when deals didn't close after months of prospecting, the support of loyal clients kept her going. She recalled roadshow moments where clients bought drinks and pizza as encouragement.

Ms Chee said that, despite its challenges, she enjoys the career for its growth opportunities, the people she interacts with, and the income it provides.

"I see myself doing this for life, and I hope people can give us a chance," said Ms Chong.