How much does financial advice cost?

Should you consult a financial adviser or not? Will the cost outweigh the benefits? Remember, the definition of good financial advice is that it leaves you better off in the long term.  But the short-term cost does deter a lot of people. 

A good rule of thumb is that if you have £10,000 or more to invest, then a financial adviser is likely to deliver net benefits. That is, you should gain more in the long run than you would by planning your own finances, even allowing for the cost of the advice. 

Here is a menu of some common adviser services, and their typical cost. Actual prices will vary according to the level of service you are offered, so bear this in mind when comparing advisers (with our adviser checklist) to see who delivers the best value overall.

Download our full cost of advice guide here.

 

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 

 

*based on a survey of 230 advisers 2015