Guide · Pension fees
How much does a pension adviser cost?
Pension advice can be charged as a fixed fee, percentage, hourly rate or combination. Compare the cash amount with the decision being made.
What do pension adviser fees look like?
MoneyHelper currently gives broad examples of 1% to 3% of the amount involved for initial pension or investment advice and 0.5% to 1% a year for ongoing advice. Actual charges vary by adviser and complexity.
Percentage fees need translating into pounds
0.5% on £250,000£1,250 a year before considering other platform or investment costs.
0.75% on £500,000£3,750 a year.
1% on £500,000£5,000 a year.
1% on £1m£10,000 a year.
One-off and ongoing advice are different purchases
A one-off pension decision and a permanent ongoing service solve different problems. Ask whether continuing advice is necessary for your circumstances and exactly what is included.
What should you compare?
Compare the initial adviser fee, ongoing adviser fee, platform charges, investment charges and any other relevant product costs separately. A lower adviser percentage can still sit inside a higher total-cost structure.
Sources & further reading