Guide · Adviser fees
Is a 0.75% financial adviser fee expensive?
0.75% is neither cheap nor expensive by itself. Convert it into pounds and compare the service delivered every year.
What does 0.75% cost?
£100,000£750 a year.
£250,000£1,875 a year.
£500,000£3,750 a year.
£1m£7,500 a year.
Where does it sit?
MoneyHelper currently gives a broad ongoing-advice range of 0.5% to 1% for pension and investment advice. 0.75% sits in the middle of that range.
What makes it good or poor value?
Planning depthDoes the service cover more than an annual portfolio review?
ComplexityMore complicated retirement, business or family planning can justify more work.
Tiers and capsCheck whether the percentage falls as assets increase.
Other costsPlatform and fund charges may sit on top of the adviser fee.
Ask for the normal annual cash cost
A useful comparison is what you will pay in a typical year once any initial work has finished, and what the adviser is expected to do for that money.
Sources & further reading