Published and sources checked · UK tax year 2026/27
Understand the charging method
Advisers may quote a fixed amount, an hourly rate or a percentage of the money covered. Minimum fees and tiered rates can also apply. The charging method alone does not tell you whether an offer is good value; you need to know the task and deliverables.
A retirement plan might involve reviewing existing pensions, comparing income options and explaining a recommendation. Implementation and later reviews may be separate services. Ask what you pay if the recommendation is to keep your existing arrangement or if you decide not to proceed.
Convert percentages into pounds
Illustrative arithmetic, not a market quote or advice. Suppose a hypothetical firm charges 1.5% initially and 0.6% a year for ongoing advice on £240,000:
- Initial charge: £240,000 × 1.5% = £3,600.
- Annual advice charge at an unchanged value: £240,000 × 0.6% = £1,440.
- If both apply for a full first year on that assumed value, the combined advice charges would be £5,040.
Real billing may use a different valuation date, deduct fees first or apply minimums. Ask for the actual calculation. These figures exclude platform, fund, pension administration and transaction costs, as well as any applicable VAT. A quote should make those items clear.
Compare the complete service
Request the same information from each firm so that the quotes are comparable:
- The question or planning problem it will address.
- Which pensions, investments and household circumstances it will examine.
- The written recommendation and implementation work included.
- Every initial and recurring charge, in pounds and percentages.
- Whether the advice is independent or restricted.
- How to end an ongoing service and what happens to the investments afterwards.
A lower initial fee can accompany a higher recurring bill. Conversely, a higher one-off fee may cover more work. Compare the scope before making a price judgement.
Make an ongoing service specific
The FCA says ongoing adviser charges must relate to ongoing recommendations or related services, with the service and cancellation rights properly disclosed. Ask what reviews you will receive, how often they occur and what contact is available between them.
Keep the agreement and record the services delivered. If a paid-for review does not happen, ask the firm to explain and use its complaints process where appropriate. Ongoing advice is a service to evaluate, not a guarantee of investment performance.
Free Pension Wise guidance can help you understand pension options before deciding whether you need paid personal advice. It does not replace an individual recommendation where that is the help you want.
Common questions
Does a 1% adviser charge include fund and pension fees?
Not necessarily. Advice, platform, fund and pension administration charges can be separate. Ask for an itemised total before agreeing.
Do I have to pay for ongoing advice?
Some firms offer one-off advice and others focus on continuing services. Ask what arrangements are available and whether implementation requires an ongoing contract.
Sources
Checked 7 October 2026. The linked sources are the authority for rules and eligibility.