How much does financial advice cost?

First published on 25 of October 2017 • Updated 08 of April 2019

Your first question about financial advice may be, ‘What can it do for me?’ The second is probably, ‘How much will it cost?’

Advice can cost anything from around £500 for investment advice to £5,000 or more for some kinds of pension advice. The exact cost of advice depends on what kind you need - but good advice should always cost less than no advice at all.

Need a quick estimate? Try the Unbiased Cost of Advice calculator

The quickest way to estimate a specific financial advice fee is to use our free Cost of Advice tool. Read on to find out more about average fees and how these are worked out.

What are the typical fees of financial advisers?

Your adviser’s fees may be based on a number of things: the extent of the advice you need, how much time it will take, and the size of the assets involved. Broadly, advisers often charge between 1 and 2 per cent of the asset in question (e.g. a pension pot), with the lower percentages being charged for larger assets (percentage charges on smaller assets may be higher).

Every adviser is different, but all should be happy to discuss their fees up front. Here are some average fees1 for typical adviser services.

Advice and set up of £10,000 investment ISA

£300

Advice on a £300 a month pension contribution

£500

Advice on defined benefit pension transfer (based on a transfer value of £100,000)

£2,500

At-retirement advice on £250,000 pension  pot

£3,000

Consolidating pension pots with a total value of £500,000

£5,000

Remember, the whole point of taking advice is to be financially better off in the long term. So for most people who take advice, the cost is less than the cost of doing nothing.

How financial advice can save you money…

First of all, a financial adviser can help you save money in many different ways. For instance, they can recommend pension schemes, investments, mortgages and protection products with lower administrative fees, saving you significant costs over the long term. They can also help you save more effectively, so that your money isn’t eroded so much by tax and inflation.

Most importantly, they can help you avoid costly mistakes, such as buying an inappropriate financial product, losing money through an error of judgement, or falling victim to fraud.

…and make you more money

Even more valuable is the way financial advice can help to grow your money. For example, the Value of Advice report2 by Unbiased found that those who took advice on pension saving near the start of their careers saved an average £34,300 more than those who took no advice – not including tax relief or compound interest.

 

Start at age 35

Start at age 25

Cost of advice on a £200/month pension contribution

£500

£500

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%

Financial advice is especially important leading up to retirement, and at the point of retirement itself. It can help you boost the value of your pension in your final years of saving, and then help you set up arrangements that ensure the right level of income in retirement, while minimising the risk of running out of money. Alongside the significant monetary savings, the two greatest benefits of advice are the confidence to make decisions, and the peace of mind that comes from making the right ones.

Unbiased.co.uk research carried out in July 2018
Value of Advice research 2015

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About the author
Nick Green
Nick Green
Nick Green is communications manager at Unbiased, the UK's favourite place to find advice you can trust. He has been writing professionally on finance, business and many other topics for over 15 years.