People taking the CFA exam are pretty young these days
If you're looking for a qualification to embellish your financial services CV, the exams by the CFA Instituteare a good place to start, Every year, over a hundred thousand people globally sit for the three part 'CFA Program.' Many of them then go on to get jobs at leading investment banks.
However, is it worth starting the CFA Program if you're no longer in the first flush of youth? Maybe not.
If you're aged 30+, you're a CFA outlier
The CFA Program isn't easy. Every exam requires 300 hours of study, which is tough when you also have a job and a family.
In 2014, the CFA Institute tells us that the average CFA I candidate was aged 26.5, that the average CFA II was aged 28.2 and that the average CFA III candidate was aged 29.7.
If you're embarking upon the CFA Level 1 aged 30+, you are therefore 'old'. If you're embarking on the CFA Level 1 aged 40+, you will feel like a dinosaur when you reach the exam room.
The CFA is becoming an accreditation pursued by students
You cannot achieve the full CFA Charter without adhering to the CFA Institute's work experience requirements. These say that you must have 48 months of relevant work experience(with relevant defined here).
This hasn't stopped students with no relevant work experience from sitting the CFA exams as part of their university courses. In fact, the CFA has actively promoted its exams as part of university degree courses. There are over 150 universities worldwide with integrated CFA examinations as part of their academic offerings.
The upshot of this is that the CFA exams are becoming a student-thing. And as a result, the age of candidates taking the CFA exams is falling - especially CFA Level I. In 2009, the average CFA Level I candidate was aged 27.4. They're now a whole year younger. Equally, as the chart below, taken from the CFA's own website, shows, students now account for nearly a quarter of all CFA exam candidates.
Source: CFA Institute
"If you have a wife and family, there are better uses for your time..."
One 40-something ex-analyst who took the CFA Level I exam told us he hasn't bothered with Level II due to the enormous time commitment required. "Once you have a wife and family, a house and kids, there are just better ways of spending your time," he said.
"The CFA exams are becoming a rite of passage for people in their 20s who have nothing going on," he added.
This particular ex-analyst took the CFA exams while he was between jobs as something to add to his CV. Now he's in work again, but he said the CFA pass didn't do much to make him more employable: "No one's ever been overtly impressed by my first time pass."
This may come as no great surprise to others who've passed CFA exams too. The Institute's June 2014 Candidate Survey found that while 47% of candidates were taking the CFA to advance their career and improve their chances of finding a job, the majority were taking the exams for more nebulous reasons like 'attaining a higher level of knowledge,' 'challenging themselves', or joining a community of globally respected finance professionals.
"I came out knowing a lot of random stuff about accounting and investing which I wouldn't have known otherwise," complained the ex-banker. "But it's not easy and the time requirement is frankly insane."
FAQs
If you have more than 2 – 3 years of full-time work experience after university, it will be very difficult to get in at the Analyst level (estimated age cut-off of 25, but it may be more like 27 – 28 depending on when you started the degree).
Is 50 too old for CFA? ›
However, the CFA isn't just a young person's game. Eight candidates noted in the same forum that they were over the age of 45, with five acknowledging that they were 50 years or older. One said he was 60.
Is 65 enough to pass CFA? ›
To pass CFA Level I, you probably need to target 70% in as many topics as possible... In other words, you don't have to get more than 70% in everything to pass. Some say you can get as low as 65%, or even 63%. You don't even need to get more than 51% in everything to pass.
What is the average age of CFA exam takers? ›
The average age of a CFA level I test taker was 26.6 in 2018. 11 However, these days, younger students frequently enter the program in their last year of school or shortly thereafter.
Is 45 too old to CFA? ›
Vidhu Shekhar: There is no age limit for taking CFA exams. There are many candidates who do CFA in their forties and fifties.
Is 38 too old to start a new career? ›
It's arguably never too late to change your career if you're armed with the right strategies. If you're in your 30s, 40s or 50s, don't despair. We've put together a guide on how to change careers at 30, 40, 50 that includes steps like networking and developing your online presence.
Can you pass CFA with 60? ›
Passing Scores
Candidates must get a minimum passing score (MPS) of 70% on the multiple-choice questions on the CFA Level I exam, a minimum score of 65% to 70% on the multiple-choice questions on the CFA Level II exam, and a minimum passing score (MPS) of 60% on the multiple-choice questions on the CFA Level III exam.
Is being a CFA a big deal? ›
Although the CFA designation is not required, the study and work requirements represent a high level of expertise. Holding the qualification indicates a high level of specialization to employers and potential clients.
Is passing CFA a big deal? ›
If you're aiming to work in roles such as financial analysts, portfolio managers, or investment bankers, the CFA designation can be a valuable asset. However, if you want to pursue careers in other areas of finance, an alternative certification or qualification may be more relevant.
Is it common to fail CFA Level 1? ›
Very few candidates pass all three CFA exams on their first attempt. CFA Institute estimates it takes the average successful candidate four years to complete the CFA Program. So failing one level, if not two, makes you an average candidate.
Are CFA Practice Questions Harder than the Actual CFA Exam? CFA practice questions are designed to be similar to the actual exam questions at every level. If candidates are experiencing difficulty with practice questions this usually means that candidate is not fully prepared or their nerves got the best of them.
What percentage of people pass CFA Level 1? ›
Here's what you should know about pass rates on the CFA: Average pass rates tend to fluctuate. Level 1 pass rates have hovered around 37% Level 2 pass rates have been around 45%
How many times can I fail CFA? ›
How many times can you retake the CFA? Candidates have six maximum attempts to pass each level of the CFA exam, and each level can be attempted only twice per year (at least six months apart).
Who is the youngest CFA in the world? ›
Africa Rising: Ghana Born Isaac Simpson, Youngest CFA Charterholder. As the Wall street journal succinctly puts it, “The CFA (Chartered Financial Analyst) Exams is the most difficult exam on wall street.” Isaac at 26, has been awarded the CFA Charter.
What is the shortest time to become a CFA? ›
CFA is a professional course that consists of three levels namely knowledge, skill and professional level. This course takes about two to three years for completion wherein you'd be required to clear 10 examinations at each level.
Is 25 too late to start a career? ›
Is 25 too old to start a career? No, 25 is usually not too old to start a new career. Many successful people only found their stride later in life.
Can I become an investment banker at 40? ›
"Most people who get entry-level jobs in banking are aged 20 to 25 years-old," says one former trader. "Once you get beyond 28 years-old, it becomes a lot more difficult to get a front office job (in trading, sales or M&A) in a bank," he adds. "Of course, there will always be exceptions, but it's tough."
Is 28 too late to start a career? ›
It is never too late to start a career from scratch, but it will not be a walk in the park. If you are ready for a tough road ahead, with the determination to excel, you can try most anything.
