Financial adviser fees as a percentage or a fixed fee
UK financial advisers charge a percentage of the money they advise on, a fixed fee, or an hourly rate. The FCA's latest published averages are 2.4% of the amount invested for initial advice and 0.8% a year for ongoing advice, which on £250,000 is £6,000 up front and £2,000 a year. Which? reports VouchedFor's 2026 average hourly rate as £205. Since 31 December 2012 advisers have not been allowed to take commission for investment or pension advice, and must agree their charge with you before they advise.
Figures checked 27 October 2026.
Percentage fees in pounds
| Amount advised on | Initial at 2.4% | Ongoing at 0.8% a year | Ten years of ongoing at the same value |
|---|---|---|---|
| £50,000 | £1,200 | £400 | £4,000 |
| £100,000 | £2,400 | £800 | £8,000 |
| £250,000 | £6,000 | £2,000 | £20,000 |
| £500,000 | £12,000 | £4,000 | £40,000 |
FCA averages from its 2020 evaluation of the Retail Distribution Review. Fund and platform charges come on top: the FCA found customers paid an average of 1.9% a year with advice and portfolio charges together.
Fixed fees advisers publish
| Work | Fixed fee | Survey |
|---|---|---|
| Retirement advice on a £500,000 pension | £6,700 | Unbiased, February 2026 |
| Inheritance tax planning on a £1m estate | £8,995 | Unbiased, February 2026 |
| Defined benefit pension transfer | £8,550 | Unbiased, February 2026 |
| £20,000 ISA set-up | £995 | Unbiased, February 2026 |
| Financial plan on £100,000 | £2,326 up front, plus £3,975 ongoing over five years | VouchedFor 2026, reported by Which? |
| £250,000 investment | £5,036 up front, plus £9,773 ongoing over five years | VouchedFor 2026, reported by Which? |
When a fixed fee costs less
A fixed annual fee costs the same as a percentage fee where the fee divided by the percentage equals the amount invested. A £2,000 a year fixed fee equals 0.8% of £250,000. Below £250,000 the percentage costs less; above it the fixed fee does. A £1,000 fixed fee equals 0.8% of £125,000.
Which? reports that 25% of advisers accept clients with less than £50,000, and 30% require at least £200,000.
Planning without regulated advice
A financial planner who does not recommend products can charge a fixed fee for the plan alone. Buzz's Financial Plan is £1,500, or £1,200 for Buzz Accounting clients, and models every year to age 100 with UK tax applied. Ongoing planning is £49 a month, £588 a year, whatever you hold. If a decision then needs a product recommendation, you can take the plan to any adviser. A one-off financial plan for a flat fee
Checking an adviser
Only firms authorised by the Financial Conduct Authority can give regulated investment advice. Search the Financial Services Register by firm name or reference number before you agree a fee. With an unauthorised firm you do not have access to the Financial Ombudsman Service or the Financial Services Compensation Scheme.
Common questions
Can an adviser still be paid by commission?
Not for advice on investments or pensions. The FCA's adviser charging rules, in force since 31 December 2012, require the adviser to agree a charge with you, and product providers cannot pay advisers commission.
What is a typical hourly rate?
Which? reports VouchedFor's 2026 average as £205 an hour, in a range of £30 to £250. Unbiased puts hourly rates between £100 and £350.
Is ongoing advice charged on the whole pot?
A percentage ongoing charge is taken on the value of the investments it covers, so it rises when they grow and falls when they fall.
Is financial planning regulated?
Financial planning that models your position and does not recommend products is not a regulated activity. Recommending a pension, investment or insurance policy is regulated financial advice.