How Much Do Financial Advisors Charge?

Discover how much financial advisors charge in the UK, including hourly rates, fixed fees and percentage models, and what affects the overall cost.

At Lillian Purge, we specialise in SEO for financial advisors, helping firms grow their online visibility and attract high-quality clients. One of the most common questions potential clients ask before contacting a financial advisor is, “How much do financial advisors charge?” Understanding the different fee structures and what they include can help both advisors and clients set realistic expectations and build trust from the start.

Why Financial Advisor Fees Vary

The cost of financial advice in the UK depends on several factors, including the complexity of the client’s needs, the type of service offered, and how the advisor structures their fees. Some clients may need one-off advice about pensions or investments, while others require ongoing financial planning and portfolio management.

Different financial advisors also take varied approaches to charging, reflecting their experience, location, and specialisation. Advisors working independently or in smaller firms may charge differently to those in larger wealth management companies.

Main Ways Financial Advisors Charge

There are three main ways financial advisors in the UK charge for their services: percentage-based, hourly, and fixed-fee pricing. Some use a combination depending on the service.

1. Percentage-Based Fees

This is the most common model for ongoing investment management. Advisors charge a percentage of the client’s total assets under management (AUM).

Typical rates are:

Initial advice or setup: Between 1% and 3% of the assets invested
Ongoing management: Around 0.5% to 1% per year

For example, if a client invests £200,000, an advisor charging 1% annually would receive £2,000 per year for managing the portfolio.

Percentage-based fees align the advisor’s success with the client’s, as both benefit from portfolio growth. However, clients should check that services such as reviews, rebalancing, and reporting are included.

2. Hourly Fees

Some advisors prefer to charge by the hour, particularly for one-off consultations or specific pieces of advice, such as pension reviews or inheritance tax planning.

Hourly rates vary based on experience and location but typically range from £150 to £350 per hour.

This method works well for clients who only need occasional advice rather than full financial planning. It also provides clear cost control, as clients pay only for the time used.

3. Fixed Fees

Fixed-fee structures are becoming increasingly popular because they offer predictability and transparency. The advisor agrees a set price for specific tasks, such as creating a financial plan or reviewing an investment portfolio.

Examples include:

Pension transfer analysis: £1,000–£2,500
Full financial review: £1,500–£3,000
Investment report: £500–£1,000

Fixed fees are often preferred by clients who want clarity upfront and no surprises later. Advisors also benefit by defining the scope of work clearly before engagement.

Initial Consultations and Setup Costs

Many financial advisors offer an initial consultation for free or at a reduced rate. This allows potential clients to discuss their goals and see whether the advisor is a good fit.

If the client chooses to proceed, the advisor may charge an initial advice fee or implementation cost. This covers time spent researching products, assessing risk profiles, and setting up investments. Initial setup fees usually range between 1% and 3% of the amount invested, depending on the complexity of the plan.

Ongoing Management and Review Fees

Ongoing fees cover continuous support, portfolio monitoring, and annual reviews. This ensures clients’ financial plans stay aligned with their changing goals or market conditions.

Ongoing fees are typically:

0.5%–1% of assets per year for investment management
£1,000–£2,500 annually for fixed-fee arrangements

These charges may also include tax efficiency advice, rebalancing investments, and regular performance reports.

Performance-Based or Success Fees

Some wealth management firms introduce a performance-based element where the advisor earns an additional fee if the client’s investments outperform agreed benchmarks.

This model can incentivise strong performance, but clients should understand the benchmarks and ensure the risk level remains appropriate for their goals.

Factors That Influence Financial Advisor Costs

Several factors affect how much a financial advisor charges:

Complexity of advice: More complicated cases such as retirement planning, inheritance tax, or business succession usually cost more.
Advisor experience: Chartered or highly qualified advisors may charge higher fees due to their expertise.
Location: Advisors in London or major cities often have higher rates than those in smaller towns.
Service level: Full financial planning with regular reviews costs more than one-off advice sessions.
Regulatory compliance: Financial advisors must maintain FCA authorisation and professional indemnity insurance, which influences pricing.

Are Financial Advisors Worth the Cost?

While the fees can seem high, professional advice often delivers value that outweighs the cost. A good financial advisor can help clients avoid poor investment decisions, reduce tax liabilities, and plan effectively for retirement.

Studies have shown that clients who receive regulated financial advice generally achieve higher long-term returns due to better diversification and discipline. In many cases, the peace of mind and time savings alone justify the cost.

How Advisors Can Communicate Fees Effectively

For financial advisors, transparency about costs is essential. Clients want to understand exactly what they’re paying for. Advisors can build trust by:

Explaining services clearly during consultations
Providing written breakdowns of fees and what they include
Offering tiered options for different budgets
Demonstrating how advice can improve financial outcomes

A transparent, educational approach helps differentiate professional advisors from less-regulated competitors.

Typical Cost Examples

To give a clearer picture, here are example scenarios:

One-off pension review: £600–£1,000 fixed fee or £200 per hour
Full retirement planning: £1,500–£3,000 depending on complexity
Investment management: 1% setup fee and 0.75% ongoing management
Estate planning consultation: £250–£400 per hour

Actual costs vary, so clients should always request a personalised quote before proceeding.

How to Choose a Financial Advisor Based on Value

Choosing an advisor shouldn’t be based solely on cost. Clients should look for experience, qualifications, and a proven process for managing client relationships. Checking FCA registration, professional designations, and online reviews can also help ensure credibility.

The best advisors focus on long-term value—helping clients reach their financial goals efficiently and with less stress, rather than just offering the lowest fees.

Expert Advice for Financial Advisors

Be upfront about all fees, including ongoing costs and additional charges.
Use clear language avoid jargon or percentage confusion.
Offer flexible pricing models to appeal to different client types.
Provide examples showing how advice adds measurable value.
Update your website regularly with transparent fee information.

Final Thoughts

There’s no one-size-fits-all answer to how much financial advisors charge, as pricing depends on services, experience, and client needs. The key is transparency and value—clients should feel confident that the cost of advice reflects its long-term benefits.

At Lillian Purge, we help financial advisors communicate their value clearly through optimised content, SEO strategies, and digital marketing that attract the right clients.

If you want to strengthen your online presence and reach more clients searching for trusted financial advice, get in touch today.