Guide · Retirement
£1m pension: is a financial adviser worth it?
At £1m, a small percentage becomes a large cash fee. The advice case may be strong, but the charging structure deserves close attention.
What do common ongoing rates mean?
0.5%£5,000 a year.
0.75%£7,500 a year.
1%£10,000 a year.
1.5%£15,000 a year.
What could the planning involve?
A larger retirement portfolio can involve drawdown strategy, investment risk, spending sustainability, family goals and coordination with other assets or tax professionals.
Ask about tiers and caps
A flat headline percentage may not be the only available structure. Ask whether higher asset bands attract lower rates or whether the annual adviser fee is capped.
Make sure the ongoing service is genuinely ongoing
If the annual cash fee is substantial, ask what work, access, modelling and responsibility continue every year rather than assuming a high portfolio value automatically needs a high recurring fee.
Sources & further reading