Financial adviser fees: what advice really costs in the UK

Since 2013, UK advisers must charge visible fees rather than commission on investment and pension advice. Three models dominate: a percentage of assets (typically 0.5%–1% a year), fixed project fees (around £500–£3,000) and hourly rates (£150–£300). This guide covers the typical numbers, what moves the price, and how to pay less without getting less.

The three ways advisers charge

Percentage of assets — typically 0.5%–1% a year for ongoing advice, often with a 1%–3% initial charge. On a £250,000 pension, 0.75% is £1,875 a year.
Fixed fees — a defined project for a defined price, roughly £500 for a focused review to £3,000+ for full financial planning.
Hourly — £150–£300 an hour, best for narrow questions and second opinions.

What moves the price

Complexity: DB transfers, business assets and trusts cost more.
Portfolio size under percentage models — negotiate above £500,000.
The ongoing service level you actually use.
Independent vs restricted firm models.

The first meeting is usually free

Almost every adviser — including every adviser on Trusted Advisor — offers a free initial consultation. Leave it with the cost in writing, in pounds, for year one and every year after.

Frequently Asked Questions

What is the average cost of a financial adviser in the UK?

For ongoing advice, most UK advisers charge 0.5%–1% of assets per year, often with a one-off initial charge of 1%–3%. Fixed-fee projects typically run £500–£3,000, and hourly advisers charge around £150–£300.

Can adviser fees be paid from my pension?

Usually yes — most providers can deduct the agreed adviser fee directly from the product, which uses pre-tax money but reduces what stays invested.

Is financial advice free anywhere?

Government-backed guidance is free: MoneyHelper for general help and Pension Wise for over-50s with defined contribution pensions. Regulated personal advice is paid, but initial consultations are almost always free.

Do financial advisers charge VAT?

Where advice leads to arranging a product it is normally VAT-exempt; purely standalone advice can attract VAT. Ask whether the quoted fee includes it.