How much does a financial adviser cost in the UK?
Start with the charging model, turn it into pounds, then compare what you actually receive for the money.
The short answer
There is no standard UK price for financial advice. MoneyHelper currently gives broad examples of £100 to £350 an hour, 1% to 3% of the amount involved for initial pension or investment advice, and 0.5% to 1% a year for ongoing advice.
Those are market illustrations, not a tariff and not an estimate of what a named adviser will charge.
The main charging models
What affects the price?
Complexity, the amount of work, how advice is delivered, who carries out the work and how investments are managed can all affect cost. Location may also influence a firm's overheads.
Ask what you will pay in year one and in a normal ongoing year, then compare what service is included.
The adviser fee may not be the whole cost
Investment or pension arrangements can also involve platform, fund, product or transaction charges. When comparing advisers, separate the cost of advice from the cost of the underlying investments or products.
What should you know before you commit?
You must be told how much the advice will cost before you sign up. If there is an ongoing charge, ask what ongoing work you receive for it and whether the charging structure is fixed, percentage-based, tiered or capped.