It is one of the most common questions people type into Google before ever speaking to an adviser: what will it actually cost me? It is also, oddly, one of the questions the industry answers least clearly. This guide sets out how advisers in the UK typically charge, what the common ranges look like, and how to decide whether advice offers value for your situation.
The main ways advisers charge
Since commission on investment products was banned in 2012, UK advisers charge fees directly. You will generally encounter four models:
- Percentage of assets. The most common model. An initial fee is charged on the amount invested or transferred, with an ongoing annual fee for continuing advice and reviews.
- Fixed fees. A quoted price for a defined piece of work - for example, a retirement plan, a pension consolidation exercise or a one-off financial review.
- Hourly rates. Less common for private clients, but used for specific, time-bounded tasks.
- Subscription or retainer. A monthly or annual amount for ongoing access to planning, more common with newer firms.
What do typical fees look like?
Every firm sets its own charges, so treat the following as broad industry shapes rather than quotes. Initial advice on investments or pensions is often charged as a percentage of the amount involved, commonly somewhere in the low single digits, with the percentage usually reducing as the amount grows. Ongoing service is typically a smaller annual percentage. Fixed-fee projects vary widely with complexity, and hourly rates for regulated advice tend to sit in the low-to-mid hundreds of pounds.
Two points matter more than the headline number. First, what the fee includes: a percentage fee that covers ongoing reviews, rebalancing, tax-allowance planning and unlimited access to your adviser is a different service from one that covers an annual statement. Second, total cost: adviser fees sit alongside platform and fund charges, and it is the combined figure that affects your returns.
Questions worth asking any adviser
- Are you independent (whole-of-market) or restricted to certain providers?
- What exactly does your ongoing fee include, and how often will we review?
- What is the total annual cost - advice, platform and funds combined?
- Are you a Chartered firm or adviser, and can I verify you on the FCA register?
- Do you charge for an initial conversation?
Is advice worth paying for?
Research over the years has consistently suggested that advised clients tend to accumulate more wealth over the long term than comparable non-advised savers - through better tax use, more suitable investment risk, avoiding panic decisions in downturns, and simply having a plan. That said, advice is not necessary for everyone: someone with straightforward finances and the time and confidence to manage them may be well served by doing it themselves. Advice earns its fee most clearly when the decisions are large, irreversible or tax-sensitive - retirement, inheritance, business sales, or consolidating a working lifetime of pensions.
How we charge at KMD
We publish our charging structure openly on our Fee Structure page, and every fee is confirmed in writing before any work begins. Your first conversation with us carries no cost and no obligation - it exists so both sides can decide whether working together makes sense.
Book a free initial call or read more about what an independent financial adviser actually does.
Important information
The information on this page is for information purposes only and does not constitute individual financial advice.
The value of investments may fall as well as rise. You may get back less than you originally invested.
Pensions are a long-term investment. You may get back less than you put in. Pensions can be and are subject to tax and regulatory change; therefore, the tax treatment of pension benefits can and may change in the future.
THE FINANCIAL CONDUCT AUTHORITY DOES NOT REGULATE TAXATION ADVICE.
INHERITANCE TAX PLANNING, WILL WRITING, TRUSTS AND TAXATION ARE NOT REGULATED BY THE FINANCIAL CONDUCT AUTHORITY.
About this article
All details are correct at the time of writing (see the date at the top of this article). Information within this article is based on our current understanding and can be subject to change without notice and the accuracy and completeness of the information cannot be guaranteed. It does not provide individual tailored advice and is for information purposes only. Some rules may vary in different parts of the UK. We cannot assume legal liability for any errors or omissions it might contain. Levels and bases of, and reliefs from, taxation are those currently applying or proposed and are subject to change; their value depends on individual circumstances.
The value of investments can go down as well as up, and you may not get back the full amount you invested. The past is not a guide to future performance and past performance may not necessarily be repeated.
