The three charging models
| Model | Typical range | Best suited to |
|---|---|---|
| Fixed fee | £1,000–£5,000+ per project | Defined jobs: a retirement plan, a pension consolidation review |
| Hourly rate | £150–£350/hour | Narrow questions; second opinions |
| Percentage of assets | 1–3% initial, then 0.5–1% per year ongoing | Ongoing management relationships |
Since 2013, UK advisers can't take sales commission on investments and pensions — you pay fees directly (commission still exists for some mortgage and protection business, which the adviser must disclose).
Percentages hide the pounds
"1% initial and 0.75% ongoing" sounds tiny. On a £300,000 pension it's £3,000 up front and roughly £2,250 every year — rising as the pot grows. Over a decade that ongoing charge alone can exceed £25,000. None of which means it's bad value: a good planner can be worth multiples of that around big decisions. It means you should always do the conversion before signing.
Do the conversion yourself
Our fee impact calculator shows what a difference in annual charges compounds into over 10, 20 or 30 years on your own numbers. Take the result into any fee conversation.
What to ask before you sign
- "What will my first year cost, in pounds?" Insist on a cash figure covering initial and ongoing charges.
- "What's included in ongoing service — and what triggers extra fees?" Reviews, rebalancing, ad-hoc questions, tax-year-end planning.
- "What are the total costs including platform and fund charges?" Adviser fees sit on top of product costs; ask for the all-in figure (advisers must disclose aggregated costs).
- "Can I take the initial advice without committing to ongoing service?" The answer tells you a lot about the business model.
- "How do I cancel, and what happens to my money if I do?"
Is ongoing advice worth it?
It depends on what you're getting. Ongoing percentage fees are good value when your situation genuinely changes year to year — drawing retirement income, managing tax across multiple wrappers, family changes. They're poor value if the "annual review" is a templated letter while your money sits in an unchanged portfolio. The honest test: list what the adviser actually did for you in the last twelve months, price it at an hourly rate, and compare.
Cheaper and free alternatives
- Free guidance: MoneyHelper (general), Pension Wise (pension options at 50+), Citizens Advice (debt).
- One-off advice: a growing number of firms sell fixed-fee, single-project advice without ongoing commitment.
- Education: for straightforward situations, understanding the system — what this site is for — may be all you need before executing yourself.
About this guide: fee ranges are illustrative market observations, not quotes, and this is general education — not regulated advice or a personal recommendation. FinancialAdvisor.co.uk is not an FCA-authorised firm. For advice tailored to you, consult an FCA-authorised adviser.