Financial adviser fees: what advice really costs in the UK

Percentage of assets

The most common model for ongoing advice. You pay a percentage of the money the adviser manages for you — typically 0.5% to 1% a year, often with a higher one-off percentage (commonly 1%–3%) for the initial work. On a £250,000 pension, ongoing advice at 0.75% costs £1,875 a year.

• Scales with your wealth — inexpensive when you have little, substantial when you have a lot.
• Aligns the adviser with growing your pot, but the fee rises with markets even in years you hear little from them.
• Always ask for the figure in pounds as well as the percentage.

Fixed fees

Common for one-off projects. A defined piece of work — a retirement plan, a pension transfer review, an inheritance strategy — for a defined price. Typical UK fixed fees run from around £500 for a focused single-issue review to £3,000 or more for comprehensive financial planning.

• You know the cost before you start.
• Well suited to people who want a plan to execute themselves.
• Compare quotes: the same scope can be priced very differently between firms.

Hourly rates

Less common but growing. UK advisers charging by the hour typically bill £150–£300. Best for narrow questions — checking a plan, a second opinion on a recommendation — where the meter runs for hours, not months.

See what advice could be worth to you

Before you weigh the cost, weigh the other side of the ledger — the seven ways an adviser typically adds value, quantified.

• Complexity — defined benefit transfers, business assets, trusts and cross-border situations cost more than a straightforward ISA-and-pension review.
• How much you have — percentage models mean the same service costs more with a bigger portfolio; above roughly £500,000 you should be negotiating the rate down.
• Ongoing service level — annual reviews, rebalancing and access between reviews are what the ongoing fee buys. If you are not using them, question the fee.
• The firm’s own model — restricted firms tied to their own products can look cheaper up front while costing more inside the products; independent (IFA) advice prices the advice separately.

Almost every adviser offers a free initial consultation — including every adviser on Trusted Advisor. It is a mutual fit check: they scope your situation, you judge whether you trust them. You should leave it with a written outline of what they would do and exactly what it would cost, and no obligation whatsoever.

• Ask: "What will I pay in pounds, in year one and every year after?"
• Ask: "Are you independent or restricted?"
• Ask: "What happens if I want to stop the ongoing service?"
• Ask: "Can your fee be paid from the product rather than my bank account?"

• Match the model to the job — one-off fixed-fee advice plus cheap execution often beats years of percentage fees for simpler situations.
• Fees can usually be facilitated from the product — paying advice fees from a pension uses pre-tax money, though it also shrinks the pot that compounds.
• Compare at least two quotes for identical scope — pricing varies far more than quality does.
• Use the free routes for guidance first: MoneyHelper for general guidance and Pension Wise (for over-50s with defined contribution pensions) are government-backed and free. They provide guidance, not personal recommendations — but they sharpen the questions you take to a paid adviser.

Fees only make sense against value. Studies of advised versus non-advised savers consistently find advised clients accumulate more — through better tax use, behaviour in downturns, and structures they would not have found alone. We set out the evidence, including where advice does not pay, on our value of financial advice page.