How much does a financial adviser cost? (UK)

Most UK advisers charge in two parts: an initial fee of 1% to 4% of the money they advise on, then an ongoing fee of 0.5% to 1.5% a year. The ongoing fee is the one that matters over time. This page shows what it adds up to, so you can decide whether the service is worth it to you. If you are still deciding whether you need an adviser at all, start with do I need a financial adviser.

By Syd Lawrence, DipFA. Founder of Delphina.

Last reviewed 28 October 2026

Delphina provides guidance, not regulated financial advice.

The two fees most advisers charge

Initial fee: 1% to 4%. This pays for the fact-find, the research and the written recommendation. On £100,000 that is £1,000 to £4,000. Unbiased reports that 90% of advisers charge an initial or set-up fee. Some will quote a fixed sum instead, and some cap the percentage on larger amounts.
Ongoing fee: 0.5% to 1.5% a year. This pays for a continuing service, usually an annual review and access to the adviser in between. It is taken from your pension or investments, so it compounds against you in the same way growth compounds for you.

Neither fee includes the cost of the products themselves. Platform charges and fund charges come on top, and an adviser's recommendation can move you to a more or less expensive platform. Ask for the total cost in pounds, every year, before you agree.

Worked example: 0.75% a year on a £100,000 pension

Take a £100,000 pension that grows at 5% a year before charges, with 0.25% a year in platform and fund charges, left for 20 years with nothing added or taken out.

With no advice fee, it grows to about £252,977.
With a 0.75% ongoing advice fee on top, it grows to about £219,112.
The ongoing fee costs about £33,864 by the end: roughly a third of the original pot.

Illustrative only: fixed growth, no contributions, no tax, no initial fee. The maths is the same as the fee-gap figures on our broker and pension comparison pages. It is not a reason to avoid advice; it is the number to weigh against what the service gives you.

What different ongoing fees cost over 20 years

Ongoing advice fee	Pot after 20 years	Cost of the fee
0.5% a year	£229,891	£23,086
0.75% a year	£219,112	£33,864
1% a year	£208,815	£44,162
1.5% a year	£189,584	£63,393

Same assumptions: £100,000, 5% growth, 0.25% product charges, no contributions.

Other ways advisers charge

Fixed fee. A set price for a defined piece of work, such as a pension review or a retirement income plan. Easy to compare, and it does not grow with your pot.
Hourly rate. Useful for a narrow question. Ask for an estimate of the hours before work starts.
One-off advice with no ongoing service. You pay once and leave. See getting a one-off financial review.

Commission on investments and pensions was banned for new advice in 2013, so an adviser must agree their charge with you directly. Anyone giving regulated advice must be on the FCA register.

When the cost is easiest to justify

The fee buys judgement on decisions that are hard to undo. Transferring safeguarded benefits worth more than £30,000, such as a defined benefit pension, legally requires regulated advice. Complex inheritance tax planning, running a business and dealing with a large lump sum are other cases where people often find advice pays for itself. Our guide to whether a financial adviser is worth it goes through each.

If you already pay an adviser and are unsure what you are getting, read getting a second opinion on your financial adviser or how to leave your financial adviser.

Where Delphina fits

Delphina is guidance, not regulated advice, and it does not recommend advisers or products. What it does is show your own numbers: whether you are on track, and what a given fee does to your retirement date. That makes it easier to decide whether paying for advice is worth it to you.

Questions

How much does a financial adviser cost in the UK?

Which? puts typical initial fees at 1% to 4% of the money being advised on, and ongoing fees at 0.5% to 1.5% a year. Some advisers charge a fixed fee or an hourly rate instead. The adviser must tell you their charges in writing before you agree to anything.

What is the difference between an initial and an ongoing advice fee?

The initial fee pays for the first piece of work: understanding your situation, researching and writing a recommendation, and setting it up. The ongoing fee pays for a continuing service, usually an annual review. You can stop paying an ongoing fee if you no longer want the service.

Is a percentage fee or a fixed fee better?

Neither is better in itself. A percentage fee grows as your money grows, so on a large pot it can cost far more than the work involved. A fixed fee is the same whatever your balance. Ask for the fee in pounds as well as percent so you can compare like with like.

Do I have to pay for advice to transfer a final salary pension?

If the safeguarded benefits, usually a defined benefit pension, are worth more than £30,000, the law requires you to take regulated advice before transferring. Expect that advice to cost more than general advice, because it must come from a pension transfer specialist.