What does a financial adviser (or advisor) do?
You have a pension pot, an inheritance or a decision you do not want to get wrong. Here is what an adviser actually does, what it costs, and when you need one.
Delphina provides guidance, not regulated financial advice.
The short answer
A financial adviser looks at your whole financial picture and recommends what to do with your pensions, investments, retirement income or protection. In the UK they must be authorised by the Financial Conduct Authority (FCA), put their advice in writing, and answer to the Financial Ombudsman if it is unsuitable. Most charge 1 to 4 percent up front and 0.5 to 1.5 percent a year.
Before you pay 1 to 4 percent for advice, see whether you are already on track.
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The role of a financial adviser, step by step
Fact-find
They collect your income, spending, debts, pensions, investments, family situation and goals. A good fact-find takes one to two meetings.
Assess your attitude to risk and capacity for loss
They work out how much investment risk you are willing and able to take, which drives every recommendation that follows.
Make a personal recommendation
They tell you specifically what to do: which pension to consolidate, which fund or platform to use, how much to draw down, whether to buy an annuity. This is what makes it regulated advice.
Put it in a suitability report
Every recommendation comes in writing with the reasons it suits you. This report is what gives you the right to complain to the Financial Ombudsman if the advice was wrong.
Implement it
They usually arrange the transfers, open the accounts and place the investments for you.
Review it, if you pay for ongoing service
Typically an annual review of your plan, investments and withdrawal rate, in return for an ongoing percentage fee.
What financial advisers typically help with
- Pensions: consolidating old pots, choosing funds, and how much to contribute.
- Retirement income: drawdown, annuities or both, and a sustainable withdrawal rate. See drawdown vs annuity.
- Investments: ISAs, general investment accounts and asset allocation.
- Defined benefit transfers: advice is legally required to transfer a DB pension worth over £30,000.
- Inheritance tax and estate planning: gifting, trusts and, from April 2027, pensions counting towards your estate.
- Protection: life cover, income protection and critical illness.
- Business owners: taking money out of a company, director pensions and exit planning.
Financial adviser vs planner vs wealth manager vs coach
| Who | What they do | FCA regulated advice? |
|---|---|---|
| Independent financial adviser (IFA) | Recommends from the whole market | Yes |
| Restricted adviser | Recommends from a limited range of products | Yes |
| Chartered or certified financial planner | An adviser with a higher qualification and a focus on long-term cash flow planning | Yes |
| Wealth manager | Manages investments, usually for larger portfolios; may include advice | Usually |
| Financial coach | Helps with habits, budgeting and decisions; cannot recommend products | No |
| MoneyHelper / Pension Wise | Free, impartial guidance from the government | No (guidance) |
| Targeted support (from April 2026) | Pension and investment providers suggesting options to groups of customers in similar situations | Regulated, but not personal advice |
More detail: financial advice vs coaching and guidance vs advice.
How financial advisers charge
| Fee type | Typical range | On a £200,000 pension |
|---|---|---|
| Initial advice (percentage) | 1% to 4% | £2,000 to £8,000 |
| Initial advice (fixed) | £1,500 to £5,000 | £1,500 to £5,000 |
| Ongoing advice | 0.5% to 1.5% a year | £1,000 to £3,000 a year |
| Hourly | £150 to £300 an hour | Depends on scope |
Platform and fund charges come on top. The full breakdown, including what a 0.75 percent fee costs over 20 years, is in how much does a financial adviser cost.
When you need an adviser, and when you do not
Worth paying for
- Defined benefit pension transfers over £30,000
- Complex inheritance tax or trust planning
- Extracting money from a business
- You want someone else to run it all
Still unsure? Read do you need a financial adviser? and is a financial adviser worth it?
Get clear before you pay for advice. If it turns out you need an adviser, you arrive at the first meeting knowing exactly what to ask. If you do not, you have saved the fee.
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Frequently asked questions
What does a financial adviser do?
A UK financial adviser reviews your whole financial situation and makes a personal recommendation on what you should do with your pensions, investments, protection or retirement income. They are regulated by the Financial Conduct Authority, put their advice in a written suitability report, and are liable if the advice is unsuitable.
Is it financial adviser, financial advisor or finance advisor?
They all mean the same thing. Adviser is the standard UK spelling and the one the FCA uses. Advisor is more common in the US, and finance advisor is an informal variant. Neither spelling tells you anything about whether someone is regulated; only the FCA Register does.
How much does a financial adviser cost in the UK?
Most charge an initial fee of 1 to 4 percent of the money advised on, or a fixed fee often between £1,500 and £5,000, plus an ongoing fee of 0.5 to 1.5 percent a year for reviews. On a £200,000 pension, a 0.75 percent ongoing fee is £1,500 a year.
What is the difference between an independent and restricted financial adviser?
An independent financial adviser (IFA) must consider products from across the whole market. A restricted adviser can only recommend from a limited range, sometimes their own firm's products. Both are regulated, but they must tell you which they are before giving advice.
How do I check a financial adviser is regulated?
Search their name and firm on the FCA Financial Services Register at register.fca.org.uk. Check the firm is authorised and that the individual is listed as able to give advice. If they are not on the register, you have no route to the Financial Ombudsman or FSCS if things go wrong.
What does a financial adviser do for complex or high-net-worth clients?
For larger or more complex situations, such as business owners, multiple pensions, property portfolios or inheritance tax planning, advisers typically coordinate with accountants and solicitors, model cash flow over decades, and plan extraction of money from companies tax-efficiently. Fees are usually higher, either as a percentage of assets or a fixed annual retainer.
Do I need a financial adviser?
You probably need one for a defined benefit pension transfer worth over £30,000 (it is a legal requirement), complex tax or estate planning, or if you want someone to manage everything for you. For budgeting, saving, investing in an ISA or checking whether you are on track for retirement, guidance and good tools are usually enough.
What can a financial adviser not do?
They cannot guarantee investment returns, and many will not take on clients below a minimum pot size, often £50,000 to £100,000. Most do not help with day-to-day budgeting or debt. Mortgage advice is a separate permission, and some advisers refer it out.
More on financial advice
- Do I need a financial adviser?: The overview: the four kinds of help and how to tell which you need.
- How much does a financial adviser cost?: Initial and ongoing fees, and what 0.75% a year does to a £100,000 pension over 20 years.
- Is a financial adviser worth it?: When the law requires advice, when it earns its fee, and when guidance is enough.
- Getting a one-off financial review: Fixed-fee advice, Pension Wise, MoneyHelper and coaching: what each covers and costs.
- Financial coach vs financial adviser: What each is allowed to do, how they are paid, and which question each answers.
- What does a financial coach do?: A session-by-session look at financial coaching in the UK.
- Getting a second opinion on your financial adviser: How to check advice you have already been given, and what to ask.
- How to leave your financial adviser: Stopping ongoing fees, moving your pension and what you keep.