What is fixed-fee financial advice?
Fixed-fee advice is priced as a set amount in pounds for a defined piece of work or service, so the cost does not rise with the size of your pension or investments.
In 2025, 1,630 UK firms typically charged a fixed fee for initial advice, against 3,272 charging a percentage (FCA retail intermediary market data 2025, Table 24, published July 2026).
Fixed fee vs percentage
| Fixed fee | Percentage of assets | |
|---|---|---|
| Cost as your pot grows | Stays the same | Rises with it |
| Cost on a small pot | Can be high relative to the pot | Low in pounds, often with a minimum |
| Knowing the cost in advance | Known in pounds | Known as a rate; pounds vary |
| Link to the work done | Priced on the work | Priced on the money |
Neither is better in general. A percentage of a small pot may cost less than a fixed fee; on a large pot the reverse is often true. Work out both in pounds over the years you expect to keep the service.
Check the scope
A fixed fee is only as clear as its scope. Ask exactly what is included, whether implementation and follow-up questions are, and what happens if the work turns out to be larger than expected. Ask too whether VAT applies (see VAT on financial advice).
Related definitions
- Hourly-rate advice
- Subscription and retainer advice
- Initial adviser charge
- Fee-only adviser
- What financial advice costs, and how to compare fees
- One-off advice without ongoing fees
Sources
- FCA, Retail intermediary market data 2025 (published 23 July 2026)
- FCA Handbook, COBS 6.1A — Adviser charging and remuneration
General information only, not regulated financial advice or a personal recommendation. FinancialAdvisor.co.uk is not authorised or regulated by the Financial Conduct Authority. Figures are labelled with their source and date; they describe the market, not any firm, and are not quotes. Spotted an error? Report it and we will correct it.