Price of advice

How much can you expect to pay for financial advice? Here is a menu of some popular advice scenarios and their approximate costs, based on a survey of 140 advisers in 2014.

 

Advice scenario

Typical cost

General

 Initial financial review / review

£500

Investment 

 Advice and set up of £11,000 investment  ISA

£358

 Investment strategy for a £50,000  inheritance for a 50yr old seeking medium  term growth

£1,500

Retirement planning 

 Advice on an £80 a month pension  contribution

£450

 Advice on a £200 a month pension  contribution

£500

At retirement       

 Converting a £30,000 pension fund into a  lump sum and annuity

£675

 Converting a £100,000 pension fund into a  lump sum and annuity

£1,500

 At retirement advice on £100,000 pension  pot (client requires full advice)

£2,000

 At retirement advice on £100,000 pension  pot (client knows what they wish to do)

£1,000

 At retirement advice on £200,000 pension  pot (client requires full advice)

£3,000

 At retirement advice on £200,000 pension  pot (client knows what they wish to do)

£1,000

 Set up of a drawdown scheme on a  £300,000 pension pot

£3,000

 At retirement advice where the client has a  £200,000 SIPP, some DB income,  £100,000  of investments and a £250,000  investment  property, incorporating estate  planning

£3,500 


Cost of advice vs value of advice

Remember, the definition of good financial advice is that it saves you money in the long term. An IFA or whole-of-market financial adviser is required to work in your best interests, so they should only offer you advice that they genuinely believe will make you financially better off overall.

Don’t be shy about asking your adviser how they charge (see Ways to pay) and be sure to request a breakdown of their fees. You should always know in advance how much you will pay for the advice (either as a fixed fee or as a percentage of assets), and sometimes you can spread the cost over a period of time (e.g. the course of an investment).

Use our checklist to find out more about advisers and how they charge.