The Cost of Advice

How much does financial advice cost?

You may be wondering if it’s worth your while to seek financial advice. The definition of good financial advice is that it costs you less than the benefits it delivers – but what can you expect to pay for it now?

The first thing to do is consult our Cost of Advice guide. This sets out a range of common advice scenarios, along with the average prices charged by financial advisers in the UK. You’ll need to speak to your own adviser about their fees of course, but this guide will give you a clear idea of ballpark figures.

Putting figures to the value of advice

Our Value of Advice report found that those who had taken advice when planning their retirement had on average £48,279 more in their pension pot (after tax relief and interest) compared to those in a similar income bracket who did not take advice.

The table below is another illustration of the long-term benefits of taking retirement advice early, this time excluding tax relief and interest.

 

Start at age 35

Start at age 25

Cost of advice on a £200/month pension contribution

£580

£580

Boost to retirement savings

extra £25,730 in pension pot (excl. tax relief and interest)

extra £34,300 in pension pot (excl. tax relief and interest)

Return on the initial cost of advice

4,336%

5,813%

These figures dramatically demonstrate the long-term value of seeking financial advice.

Before you search for an adviser take a look at typical financial advice scenarios and their fees in our full breakdown below.

Full Cost of Advice breakdown

 

Advice scenario

Typical cost*

General

 Initial financial review / review

£500

Investment 

 Advice and set up of £11,000 investment  ISA

£450

 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

£500

 Advice on a £200 a month pension  contribution

£580

Advice on transferring a £30,000 pension with guaranteed annuity rates

£900

Advice on transferring a £100,000 pension with guaranteed annuity rates

£2,000

Specialist advice on defined benefit transfer

£1,500

At retirement       

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

£825

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

£1,750

 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)

£2,500

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

£1,100

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

£3,500

 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

£5,000