Find out how much financial advice costs, the various ways that you might be charged for receiving financial advice, and how to negotiate the fees and charges that financial advisers charge.

How much does it cost to get financial advice?

Financial advisers are required to come to an agreement up front regarding how much they will charge you for their services, when those charges will take place, and how payments will be paid to the financial advisers. You are going to be billed in one of these three primary ways.

Fixed prices

A one-time fee that covers everything, from doing the fact search to carrying out the plan, in its entirety. Personalized to meet your requirements, although the exact form it will take is highly variable from one consultant to the next.

It is possible that you will be paid a one-time cost for the suggestions, followed by a flat price either annually for reviews or for each individual piece of work your advisor completes.

Hourly rates of pay

Simple and the proof may be gathered with little effort, but users should be aware that this method may provide less of an incentive for the adviser to complete the task in a timely manner.

You may expect to spend anywhere from $30 to $250 an hour for their services.

What percentage of your total funds you plan to put into the investment?



This represents a proportion of your total assets.

According to the Financial Conduct Authority (FCA), advisers typically charge a fee equal to 0.8 percent of the total amount invested on a yearly basis in addition to 2.4 percent of the amount invested for first advice (1.9 percent p.a with underlying product and portfolio charges factored in).

Some examples of the fees associated with receiving financial advice

Here is a breakdown of what you should anticipate paying for three scenarios that are frequently searched for on adviser comparison sites: VouchedFor. When IFAs charge based on a percentage, the relevant percentage amounts are enclosed in brackets.

How does the information about charges appear on IFAs?

In the past, IFAs were paid on a commission basis, and the cost of doing business was passed on to the clients. IFAs are now required to charge their clients directly in accordance with the new regulations that were made public in 2012 as part of the Retail Distribution Review.

However, a search conducted by Which? in April 2021 on the websites of one hundred IFAs revealed that 89 of them did not display pricing information online. Among the ones that did show price, some of them stated their hourly rate for each consultation, while others listed their implementation fee and recurring percentage fee for various hypothetical scenarios.

Not all of them displayed the relevant product-related costs, but some of them did.

IFAs are not required to show information about their fees on their websites, thus the majority of them will request an initial meeting with you before providing a price. This is done to ensure that the estimate they provide is accurate in light of your current financial status.

It is still crucial to look about and not go with the first independent financial advisor (IFA) that you meet because there may be another that is a better fit for your needs and offers greater value for the money. Before settling on a choice, it is recommended that you receive at least three different estimates.

How much do I need to have saved up before I can receive any financial advice?

According to the Financial Conduct Authority (FCA), the typical advised customer has more than 150,000 pounds worth of assets under guidance. Separately, study conducted in 2019 by Canada Life indicated that out of 250 advisers, just 16 percent would work with a client who had less than £100,000, which is a significant decrease from the percentage of 50 percent in 2014.

Be aware that if you have a smaller amount to invest, an adviser who charges you based on how much is in your pot might be reluctant to take you on as a client because they might feel that the amount of revenue they would generate might not justify the cost of offering you their service. This is something to keep in mind if you have a smaller amount to invest.

You can narrow down your search for financial advisors using the size of your investment pot by using VouchedFor or Unbiased. If you are unable to afford any of the remaining choices, you might be able to pay a one-time, flat price to an advisor in order to receive one-time guidance rather than paying for an ongoing service.

Where can I obtain free assistance on my financial situation?

A great number of financial consultants provide free initial consultations, during which you will outline your requirements with regard to your finances and determine the areas in which you may use some assistance.

A professional counsel will also walk you through your available choices and the resources that are available to assist you in moving forward in the process.

There is no more free space after this point. If you make the decision that you want a professional adviser to manage your financial affairs, the only way you will receive concrete recommendations and a plan is if you move ahead and agree to use the services that they offer after making your decision.

However, there are a few options available to you if you are seeking for general advice, which is also frequently referred to as “guide,” but does not include any recommendations, and this is especially true if you are planning your retirement.

MoneyHelper provides financial and retirement planning advice over the phone, via the internet, and in-person (replaces the Money Advice Service and The Pensions Advisory Service)
Advice from Citizens Advice can be obtained on a wide range of topics, including finances, consumer rights, benefits, and legal concerns.
Over-50s can speak to someone over the phone or in person to better understand their pension options through the Pension Wise programme, which was established when the pension freedoms were made available.

Don’t get fooled by ‘free’ debt advice

There are scores of companies that provide guidance on how to deal with debt, and the advertisements for some of these companies mimic those of legitimate charity that deal with debt.

These companies could end up directing you to adopt techniques that are either unnecessary or pricey.

StepChange is an organisation that helps people who are struggling with debt and they offer free debt assistance. Advice has been provided by it for for than 25 years, and it is now now offered via the internet and via phone.

Various ways to pay for professional financial guidance

The cost of financial advice can frequently reach into the hundreds, and even the thousands, of pounds, depending on the amount of money you have available to invest and the level of sophistication of the services you require from a financial adviser.

However, there are certain things you can do that will make it a little bit simpler for you to handle the costs associated with getting professional guidance.

Allowance for Giving Advice on Pensions



You are permitted to withdraw up to £500 from the savings you have accrued in your pension plan under the Pensions Advice Allowance, which was first implemented in April of 2017. This money can be used to pay for retirement and pensions advice.

This limit of £500 can be used three times, which is designed to allow you to get retirement advice at various points of your life. Specifically, this money is designed to allow you to access retirement advice. When selecting a pension plan, for instance, as well as when determining how to invest your funds, you might wish to get some professional guidance.

However, during the course of the tax year, you are only permitted to make one of your three withdrawals.

If you utilise the money you withdraw to pay for financial advice, you will be exempt from paying any tax on the amount you withdraw. This is the good news.

The Pensions Advice Allowance is offered to people of any age, but they must already be receiving a defined contribution pension in order to qualify for it. Those who have a defined benefit pension, often known as a final salary pension, are ineligible to participate in the programme.

Advice on your finances, provided by your company

Additionally, businesses may offer to pay for their employees’ access to financial counselling without being subject to income tax.

This tax exemption has always been available, however the threshold for qualifying for it has raised from £150 to £500 as of April 2017.

In conjunction with the Pensions Advice Allowance, this means that you may be eligible to receive up to £1,000 to put toward the cost of retirement or pension advice.

What should I do if I have investments for which I am still paying commission?

The term “trail” refers to the recurring commission that financial advisors used to get from the investment funds their clients owned.

If the advice was provided to the client before January 1, 2013, the adviser is eligible to collect trail commission. Even if you switch to a different adviser, you may still be subject to trail fees as long as the new adviser provides you with prompt disclosure of the total amount of the trail fees.

You will be required to pay an additional charge, however, if your financial adviser moves you to a different investment or suggests that you make a greater commitment to your existing portfolio.

It makes perfect sense to get your financial planner to look over your portfolio if you have any reason to believe that you are still involved in funds that pay trail commission.