What Does a Financial Adviser Do?
By Georgia Holmes
Discover how a financial adviser can help with pensions, investments, retirement planning and major life decisions. Learn when to seek advice, how to choose the right professional and what financial advice typically costs in the UK.
Managing your money can become complicated, especially when you’re making important decisions about pensions, investments, property or retirement. A financial adviser can help you understand your options, make informed decisions and build a plan around your financial goals.
But what does a financial adviser actually do, when should you consider speaking to one, and how much does financial advice cost in the UK?
In this guide, we explain how financial advisers work, the services they offer and what to consider before choosing one.
What Does a Financial Adviser Do?
A financial adviser looks at your financial circumstances, goals and priorities before recommending suitable ways to manage your money. Depending on their qualifications and specialisms, they may help with pensions, investments, retirement planning, tax-efficient saving, protection and wider financial planning.
Their role is to help you make decisions based on your individual circumstances rather than simply choosing a financial product.
A financial adviser may help you to:
Plan for retirement: Work out whether you’re saving enough into your pension and explore your options for taking an income when you stop working.
Make investment decisions: Understand your attitude to risk, investment time frame and options for growing your money.
Review your pensions: Understand your existing arrangements, charges and whether any changes could be appropriate.
Use tax allowances: Consider how available allowances and tax-efficient arrangements could support your financial goals.
Protect your family: Explore suitable life insurance, income protection or other cover, where this falls within their expertise.
Plan for major life events: Make financial decisions following marriage, divorce, bereavement, an inheritance or the sale of a business.
Build a long-term financial plan: Bring different parts of your finances together to help you work towards goals such as buying a home, supporting your children or retiring comfortably.
A regulated adviser will usually gather information about your circumstances and provide recommendations tailored to your needs. You should receive a clear explanation of the advice, why it has been recommended and what it will cost.
What Is the Difference Between a Financial Adviser and a Financial Planner?
The terms financial adviser and financial planner can overlap, and firms may use them differently.
A financial adviser may focus on a particular decision, such as choosing an investment, reviewing a pension or arranging suitable protection. A financial planner often takes a broader view, helping you understand how your income, assets, spending and future goals fit together over time.
For example, someone approaching retirement may want to know whether their pension is performing well. A financial planner might look beyond the pension itself to consider when they can afford to retire, how much income they will need, their other savings and how they could manage their money throughout retirement.
Neither title alone guarantees the range or quality of service. Check the adviser’s qualifications, experience and the specific advice they are authorised to provide.
What Types of Financial Adviser Are There?
The right adviser depends on what you need help with.
Independent financial advisers (IFAs)
An independent financial adviser…