How much does a financial adviser cost?
- Nic Round: Chartered Wealth Manager
- Feb 13
- 3 min read
Updated: 1 day ago
In the UK, financial adviser fees vary depending on the work involved, the size of your assets, and the charging structure used. But behind this question often sits something more personal:
Am I about to overpay?
Is advice actually worth it?
How do I know if I’m getting value?
Could I do this myself instead?
Understanding how adviser fees work — and what they’re meant to cover — helps bring clarity before committing to anything.
How financial advisers typically charge in the UK
There are three common charging structures.
1. Percentage-based fees
This is the most familiar model.
An adviser may charge:
An initial fee (often 1%–3% of assets advised on)
An ongoing annual fee (often around 0.5%–1%)
For example:
£500,000 invested
1% ongoing fee
£5,000 per year
Seeing the cost in pounds rather than percentages often changes how the question feels.
The key consideration is whether the service justifies the cost over time.
2. Fixed fees
Some advisers charge a set amount for specific work, such as:
Retirement planning
Pension advice
Inheritance tax planning
Investment restructuring
This might be several thousand pounds for defined work, regardless of asset size.
For many people, fixed fees feel clearer because the cost is known in advance.
3. Hourly rates
Less common in ongoing wealth management, but sometimes used for:
Second opinions
Technical consultations
One-off planning work
This structure resembles how solicitors or accountants charge.
What adviser fees are intended to cover
Good financial advice is rarely just fund selection.
Fees typically reflect work such as:
Understanding your full financial position
Cashflow modelling
Tax planning
Pension strategy
Ongoing reviews
Behavioural guidance during volatile markets
The value is often in structured decision support over many years, not in a single recommendation.
The real question: is financial advice worth the cost?
This is usually what people are truly asking.
Advice may be valuable when:
Decisions are large or irreversible
Tax complexity is meaningful
Family circumstances require coordination
Confidence is low
Advice may matter less when:
Finances are straightforward
Decisions are small
You are comfortable managing everything independently
The issue is rarely price alone.
It is suitability and fit.
A simple cost comparison example
Consider:
£600,000 invested
0.8% ongoing advice fee
£4,800 per year
If advice helps:
Reduce unnecessary tax
Avoid a costly withdrawal error
Improve long-term sustainability
Prevent panic selling in downturns
The value may exceed the fee.
But if no meaningful planning or review occurs, the fee will feel heavy.
Clarity about what is being delivered matters.
A more useful way to think about it
Instead of asking only:
How much does a financial adviser cost?
A more grounded question might be:
What am I paying for, and does it improve the decisions I’m making?
That shifts the focus from fee comparison to decision quality.
And that is often where confidence is built.
Some of the most common practical questions people ask about financial adviser costs are below.
Do financial advisers charge upfront fees?
Many advisers charge an initial fee for setting up advice, particularly for pension or investment restructuring.
Is 1% a typical financial adviser fee?
Around 0.5%–1% annually is common for ongoing advice, but structures vary depending on complexity and service level.
Are adviser fees tax-deductible?
In most personal investment cases, adviser fees are not directly tax-deductible, though pension-related advice may be paid from pension funds in some circumstances.
Can I negotiate financial adviser fees?
Some advisers may adjust fees depending on asset size or complexity, but charges should always be transparent and agreed upfront.
A calm place to think first
If you are weighing the cost of financial advice, you may not need to arrange a meeting immediately.
Often the most useful first step is simply to clarify:
What decision you are facing
What support you genuinely need
Whether advice would improve confidence or outcomes
Evoa exists to provide that quiet thinking space — before advice, before action.
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