Financial adviser costs in the UK depend on the work required, the firm’s charging model and whether the service is one-off or ongoing. Consumers may see fixed fees, hourly rates, percentages of assets or a combination. The adviser charge is often only one part of the total cost.
Quick answer
Before agreeing to advice, ask for the initial and ongoing adviser charges in pounds, the services included, the method of payment and the other costs that may continue through a pension, investment platform, fund or investment-management service. A lower headline rate is not necessarily a lower total cost.
Key points
- Financial advisers set their own prices, but charges should be clear and fair.
- MoneyHelper currently gives broad illustrations of £100 to £350 an hour, 1% to 3% for initial pension or investment advice and 0.5% to 1% for ongoing advice; these are not fixed tariffs.
- Fixed, hourly and percentage charging can each be reasonable depending on the service.
- Percentage fees should be converted into pounds and tested at different asset values.
- An ongoing adviser charge should correspond to an ongoing service that has been clearly described.
- Platform, fund, product and investment-management costs may be payable in addition to the adviser fee.
- Consumers should compare identical service scopes and understand cancellation terms before proceeding.
How financial adviser costs work
There is no single national price for financial advice. Firms choose their own charging structures and may price the same type of work differently. A straightforward one-off question can cost less than a complex retirement plan involving several pensions, investments, tax considerations and family objectives.
The price can reflect the time required, the adviser’s specialist expertise, the amount of research, the risk and responsibility involved, the number of products or providers, and whether implementation or future reviews are included. Online or telephone-based services may have a different cost base from face-to-face firms.
Consumers should distinguish between a quotation and an estimate. A fixed quotation states an agreed price for a defined scope. An estimate may change if the work becomes more complex. The agreement should explain what happens if additional work is discovered.
The adviser’s charge may also be collected in different ways. It might be paid directly from a bank account, deducted from an investment or pension where permitted, or combined with another fee arrangement. Deduction from a product does not make the advice free: it reduces the amount remaining in the product.
Indicative UK financial adviser cost ranges
MoneyHelper’s fee guide, checked for this page in June 2026, says typical hourly financial-advice fees are often between £100 and £350. It also gives broad illustrations of 1% to 3% of the value for initial pension or investment advice and 0.5% to 1% for ongoing advice.
These figures are not a regulated tariff, a guaranteed average or a quote for a particular consumer. Some advisers use minimum fees, tiered percentages or fixed project charges. Specialist or unusually complex work can cost more, while limited digital services may cost less.
For illustration, a 2% initial adviser fee on £100,000 is £2,000. A 0.75% annual ongoing adviser fee is £750 at a £100,000 asset value. If the value later rises to £140,000 and the same percentage continues, the cash charge becomes £1,050 before considering any tiering or minimum fee.
Percentages can look small, so the pound amount matters. The effect of recurring charges also accumulates over time because money used to pay charges is no longer invested. This does not make percentage charging automatically poor value, but it means the service and long-term cost should be understood.
| Charging example | Illustrative calculation | What to check |
|---|---|---|
| Fixed initial fee | £2,500 for a defined retirement-planning project | Whether implementation, provider work and follow-up questions are included |
| Hourly fee | 10 hours at £225 = £2,250 | The estimated hours, approval for overruns and which staff rates apply |
| Percentage initial fee | 2% of £150,000 = £3,000 | Minimum or maximum fees and whether different bands apply |
| Percentage ongoing fee | 0.75% of £150,000 = £1,125 a year | Exact annual services, review frequency and cancellation process |
The main adviser charging structures
A fixed fee is an agreed price for a defined piece of work. It can make budgeting easier, but consumers should check the boundaries of the project and whether later changes will be charged separately.
An hourly fee is based on recorded time. It can suit a narrow question or consultation, but the final cost is uncertain unless the firm provides a cap or range. Ask whether different rates apply to advisers, paraplanners and administrators.
A percentage fee is calculated from an asset value or amount under advice. It can align the charge with portfolio size, but the same work may cost more as assets grow. Minimum charges can make the effective percentage higher for smaller portfolios.
A combined structure uses more than one method. A firm might charge a fixed planning fee, a percentage for implementation and another percentage for ongoing service. Each layer should be separated and explained.
Some firms use tiered percentages, with a different rate applying to different bands. Consumers should confirm whether the lower rate applies only to the higher band or to the entire portfolio once a threshold is reached.
Initial advice fees and ongoing advice fees
An initial fee pays for work such as fact-finding, research, analysis, a personal recommendation and possibly implementation. The fee should be linked to the agreed work rather than assumed to include unlimited future help.
An ongoing fee pays for a continuing service. Depending on the agreement, this might include scheduled reviews, updates to circumstances and objectives, portfolio monitoring, rebalancing, cash-flow updates or access to an adviser.
“Ongoing advice” is not one standard package. Two firms can charge similar percentages but provide very different services. The client should receive a description of the service, associated charge and cancellation process.
Ongoing service is optional for many consumers. A person may choose one-off advice and manage the arrangement afterwards. Others may value continuing support because their pensions, investments, withdrawals or circumstances require regular review.
The adviser fee is not always the total cost
Investment and pension arrangements can contain several separate charges. These may include platform fees, fund ongoing charges, transaction costs, product charges, discretionary investment-management fees and the adviser charge.
A portfolio using an investment manager may include both adviser and investment-management costs. A pension may contain administration and fund charges even if the adviser relationship ends. Cancelling ongoing advice therefore does not necessarily cancel all other charges.
Ask for the total expected first-year cost and the total expected annual cost thereafter. Where possible, obtain both pounds and percentages. The illustration should identify which charges are estimates and which are contractually fixed.
Existing arrangements should also be considered. Moving to a new platform or product may introduce exit costs, loss of guarantees or different tax treatment. A cheaper-looking annual fee is not sufficient reason to switch.
How financial adviser fees can be paid
A client may pay an adviser directly. Alternatively, a product provider or platform may facilitate payment by deducting an agreed adviser charge from the client’s pension or investment and passing it to the firm.
Facilitation is a payment method, not a provider subsidy. The money still belongs to the client and the deduction reduces the product value. The client should agree both the amount and the payment method.
Where charges are deducted from a pension or investment, ask which account will be used, how often deductions occur and whether sufficient cash must be held. Selling investments to fund charges can have additional consequences.
Consumers should also check whether VAT is included or could apply to any part of the service. The treatment depends on the nature and structure of the work, so the firm should clarify the quoted amount.
Adviser fees and commission
For new investment and pension advice, adviser-charging rules generally require the client and adviser to agree an adviser charge rather than the adviser receiving provider-paid commission for the personal recommendation. Legacy investment arrangements from before the end of 2012 can still contain trail commission in some circumstances.
Commission can still apply in other markets, including certain mortgages, insurance, protection and equity-release products. A blanket statement that advisers never receive commission would therefore be inaccurate.
If commission applies, ask how much is paid, who pays it and whether it affects the products considered. The adviser should explain how the service is remunerated.
How adviser charges should be disclosed
FCA guidance for adviser firms says the total adviser charge specific to the client should be disclosed as early as practical and before the client incurs charges. The disclosure should be in cash terms, in writing and in a durable medium, and the client’s agreement to the amount and payment method should be recorded.
Where a percentage is used, the disclosure should make clear that the cash charge may increase as the fund grows. Where ongoing charges apply, the firm should confirm the ongoing service, the associated charges and how the client can cancel.
A generic fee schedule can help a consumer understand the firm’s model, but it does not replace a client-specific quotation. The consumer should know what they personally will pay for the agreed scope.
How to compare adviser quotations
Ask each firm to quote for the same problem and deliverables. One proposal may include implementation and the other may stop at a report, so headline prices cannot be compared without checking scope.
Convert all percentages into pounds using the same asset value. Show initial and annual costs separately. If asset values may change, test more than one scenario.
List non-adviser charges beside the adviser fee. A firm with a lower adviser percentage may recommend a more expensive platform or investment service. The total package matters.
Check minimum fees, tiering, VAT, cancellation terms and charges for work outside the agreement. Our detailed comparison guide includes a structured quotation checklist.
Cost and value are not the same question
Price is the amount paid. Value depends on the quality and usefulness of the service relative to that amount. Advice may provide value through planning, organisation, risk management, tax awareness, avoidance of unsuitable actions and support during difficult decisions.
Investment performance alone is an incomplete measure because advisers do not control markets. Equally, vague claims about “peace of mind” should not excuse a service that is poorly defined or not delivered.
Value can decline when a recurring service no longer matches the client’s needs. Consumers can periodically ask whether the service is still appropriate and whether a different arrangement would provide better value.
Current position for ongoing advice services
The FCA’s existing adviser-charging rules remain in force. An ongoing adviser charge should relate to an ongoing service, and firms should disclose the service, the charge and how to cancel.
In a 2025 multi-firm review, the FCA reported that 83% of promised suitability reviews in the reviewed data were delivered. A further 15% were declined by clients or could not be completed because clients did not engage. Firms reported making no effort in fewer than 2% of cases. The FCA stressed that the sample was not representative of the whole market.
In March 2026, the FCA consulted on replacing certain annual suitability-review requirements with more flexible periodic reviews based on client need. That consultation has closed, but a Policy Statement had not been issued when this page was reviewed. The proposal should not be treated as a current rule change.
Common mistakes when assessing fees
- Comparing percentages without converting them into pounds.
- Ignoring minimum fees or tiered bands.
- Comparing different service scopes as though they were identical.
- Looking only at the adviser charge and not the total package.
- Assuming a product-funded deduction means advice is free.
- Paying an ongoing fee without understanding annual deliverables.
- Assuming the cheapest adviser is the most suitable or the most expensive adviser is the most comprehensive.
- Failing to check how to cancel or switch.
Questions to ask about costs
- What is the total initial adviser charge in pounds?
- What work is included and excluded?
- Is implementation included?
- What ongoing charge applies, and what will be delivered each year?
- Are there minimum fees, tiered rates or VAT?
- What platform, product, fund and investment-management charges apply?
- How will the fee be paid?
- What happens if the work becomes more complex?
- How can the ongoing service be cancelled?
- What charges continue after cancellation?
Frequently asked questions
How much does financial advice cost in the UK?
There is no standard price. MoneyHelper currently gives broad illustrations of £100 to £350 an hour, 1% to 3% for initial pension or investment advice and 0.5% to 1% for ongoing advice, but actual quotations vary.
Is a percentage fee better than a fixed fee?
Neither method is automatically better. Compare the cash amount, service scope, minimum charges and how the cost changes over time.
Can adviser fees be taken from a pension or investment?
In some arrangements a provider or platform can facilitate an agreed adviser charge. The deduction still comes from the client’s assets.
Do financial advisers receive commission?
New pension and investment advice is generally paid through agreed adviser charges. Commission can still apply to some mortgages, insurance, protection and legacy arrangements.
Do I need ongoing advice?
Not always. The need depends on complexity, preferences and the service offered. One-off advice may be sufficient for some consumers.
Can I cancel an ongoing adviser fee?
The firm should explain how to cancel. Other platform, product or investment charges may continue after the adviser service ends.
How costs can differ by the type of advice
A quotation for accumulation-stage investment advice may be based on the amount invested and the research required. Retirement advice may involve modelling withdrawals, tax, State Pension, longevity and different market conditions. Pension-transfer work can involve specialist qualifications and extensive analysis. Later-life or business-owner advice may require coordination with solicitors or accountants.
The same consumer may therefore receive very different quotations for different questions. A low-cost investment review does not establish the likely price of a complex retirement-income plan. Ask the adviser to divide a broad engagement into identifiable workstreams where that makes the cost easier to understand.
A firm may also price a recommendation to retain existing arrangements differently from implementation into a new product. Consumers should confirm whether the advice fee remains payable when the outcome is “no change”. Paying for independent analysis rather than a transaction can be an important feature of regulated advice.
Advice fees at different stages of the client journey
The first conversation is often free, but a free introductory meeting should not be confused with free advice. Its purpose is usually to understand the issue, explain the firm’s service and prepare a quotation.
Once the client agrees to proceed, the firm may charge for fact-finding and analysis, the final recommendation, implementation and ongoing reviews. Some firms combine these stages in one fee. Others invoice each stage separately.
Staged charging can help the client understand progress and stop before later work begins. However, the agreement should say what is payable if the client withdraws after research has started or if the adviser concludes that no suitable recommendation can be made.
When a provider facilitates a fee from a pension or investment, the timing of deduction may not match the completion of every stage. The adviser should explain when authority is used and how any unused or incorrectly taken amount would be handled.
Small portfolios, large portfolios and proportionality
A percentage fee can appear proportionate because the amount rises with the portfolio. Yet much of the adviser’s work—identity checks, fact-finding, suitability analysis, reporting and compliance—can be similar across portfolio sizes. This is why minimum fees are common.
For larger portfolios, the opposite issue arises. A percentage can produce a high cash charge even if the additional work is limited. Tiered rates or cash caps may reduce this effect. Consumers can ask whether the service becomes more complex as assets rise and how the fee reflects that complexity.
Portfolio size is not the only measure of responsibility. A smaller pension that represents most of a household’s retirement security can be more consequential than a larger investment that is surplus to essential needs.
What a clear cost disclosure should allow you to do
A good disclosure should allow the client to answer four questions without calculation software: what will I pay now, what may I pay later, what service will I receive and how do I stop paying?
It should distinguish adviser fees from all other charges, identify percentage calculations in cash and explain uncertainty. It should also make the payment route clear, particularly where deductions are made from a product.
If the disclosure cannot be compared with another quote, ask the firm to restate it. Complexity in the financial situation does not require unnecessary complexity in the explanation of fees.
Sources and further reading
Important: This guide is for general education only. It does not provide personal financial advice, a quotation or a recommendation to use a particular adviser, firm, product or charging method.
Reviewed by: Financial Adviser Hub Editorial Team. Last reviewed: June 2026.