£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.
Assess an advice fee →
What do common ongoing rates mean?
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.
A larger pension needs a whole-household assessment
At £1m, cash fees and the interaction of pension decisions with other assets can be substantial. Still, the balance does not determine the right retirement strategy. Identify spending, other secure income, dependants, access needs and the purpose of any intended legacy.
Check the history of pension benefits already taken and any relevant protections or allowances. Do not assume every person with the same current pot has the same tax position or tax-free lump-sum entitlement. Obtain accurate records and appropriate advice on the actual facts.
If continued work or contributions are planned, assess them alongside withdrawals. The timing and method of pension access can affect future saving, while other income affects the tax calculation.
Require a detailed justification for recurring cost
A fictional 0.75% annual adviser charge on an unchanged £1m is £7,500 before underlying costs. Ask which work is included, whether tiers or caps apply and which activities would attract additional fees. A larger asset balance does not automatically mean every task is proportionately larger.
Compare a normal year's service as well as the initial planning project. Ask about income reviews, coordination with tax professionals, family planning and access between meetings. The proposal should identify actual responsibilities rather than rely on a premium-service label.
If several household accounts are involved, clarify aggregation and ownership. A household discount may change the charging calculation without changing who legally owns each pension or investment.
Test concentration and future flexibility
Ask how the plan would respond to a large withdrawal, market fall, changed health or loss of a partner's income. Identify which commitments are flexible and which resources are accessible. A large balance can still support an unsustainable spending plan if assumptions are too optimistic.
Keep retirement-income and inheritance objectives distinct enough to see the trade-offs. Future tax changes and family needs should be reviewed from current sources, not assumed permanent. A desire to leave money should not obscure the resources needed during your own life.
The useful service makes these choices understandable, implements agreed actions and defines later reviews. It should not depend on a promise that a large pension deserves a complex product or a high recurring percentage.
Sources and further reading
MoneyHelper - Financial adviser fees ↗
MoneyHelper - Find a retirement adviser ↗
GOV.UK: tax when you get a pension ↗
