Can you pay a financial adviser by the hour?
An hourly rate only tells you the cost of time. Ask how many hours are expected, which staff rates apply, whether there is a minimum fee and when the adviser would seek agreement for extra work.
Understand financial advice costs →
An hourly quote needs more than a rate
| Illustrative work | Calculation | Price before other charges |
|---|---|---|
| Four hours | 4 × £200 | £800 |
| Eight hours | 8 × £200 | £1,600 |
| Four hours with a £1,200 project minimum | The minimum exceeds £800 | £1,200 |
These examples use an invented £200 rate and £1,200 minimum. Ask whether the estimate includes preparation, analysis, meetings, a written recommendation and VAT where applicable.
What does MoneyHelper say about hourly fees?
MoneyHelper currently says typical hourly financial advice fees are often between £100 and £350 an hour. The final cost depends on the work and complexity.
Ask for an estimated total, not only the hourly rate
A £150 hourly rate can cost more than a £250 rate if the scope or time required is very different. Ask how many hours the adviser expects the work to take and what would trigger extra charges.
Hourly advice can suit defined questions
It can be attractive when you want professional input on a specific planning problem rather than an indefinite percentage-based service. Availability varies by firm.
Compare outcome and scope
Check what you receive at the end of the engagement, whether a personal recommendation is included and whether implementation is separate.
Ask for the likely job cost as well as the hourly rate
An hourly rate tells you the price of time, not how much time your case requires. Ask for an estimated range of hours, the tasks included and who performs them. Research, meetings, administration and report preparation may be charged differently or combined in the quoted rate.
Find out whether the estimate is a fixed commitment, a working assumption or a ceiling requiring your approval before it is exceeded. A clear review point is useful when the amount of provider research is uncertain. Ask the firm to notify you before a material change in scope creates more billable work.
Confirm the minimum billing unit and whether brief calls or emails are charged. These details are not inherently a problem; they simply affect how the arrangement works in practice.
A comparison based on total time
Consider two invented quotes: £200 an hour for eight estimated hours and £300 an hour for five. They produce £1,600 and £1,500 respectively. The lower hourly rate does not necessarily produce the lower bill, and neither figure says whether the work is equivalent.
Compare what each estimate includes: information gathering, analysis, a written recommendation and discussing it with you. If one excludes implementation or charges separately for support staff, add those likely costs before comparing. Ask whether VAT applies to the quoted service and whether the written total includes it; treatment can depend on the work.
This arithmetic is a way to interrogate a quote, not an estimate of normal market rates. The appropriate time depends on the case and the agreed service.
| Example | Rate and time | Calculated fee |
|---|---|---|
| Quote A | £200 × 8 hours | £1,600 |
| Quote B | £300 × 5 hours | £1,500 |
Use hourly work for a defined purpose
Hourly advice can suit a bounded question or a review where you want to pay for professional time without an asset-based relationship. It still needs enough information to support any personal recommendation. Asking for one hour does not make a complex pension decision safely assessable in one hour.
Prepare organised documents and concise questions, but do not withhold material facts to save time. Ask the adviser which preparation reduces duplication and whether they need to verify records independently.
At the end, request a record of the work performed, the conclusion and any unanswered questions. Agree whether follow-up is included. If further work is proposed, treat it as another scope decision rather than assuming that the original estimate remains open-ended.
