The short answer
Most UK financial advisers charge an initial fee for the advice and plan, then an ongoing fee for annual reviews. Which? reports FCA figures of around 2.4% of the amount invested for initial advice and 0.8% a year for ongoing advice, while Unbiased puts typical ongoing fees at 0.5% to 1% a year. Hourly rates are typically £100 to £300. The first meeting is usually free, and every adviser must tell you their charges in writing before doing any work.
The three ways advisers charge
An initial fee covers the work of understanding your situation and making a recommendation. It may be a fixed amount, a percentage of the money involved, or hourly. On a percentage basis, the rate usually falls as the amount rises.
An ongoing fee pays for continued service — typically an annual review, rebalancing and being on hand when things change. It is usually a percentage of the money the adviser looks after, taken from the investments.
Hourly or fixed-project fees suit one-off pieces of work, such as a single pension decision. Which? cites VouchedFor data putting the average hourly rate at £196.
What the published averages say
Which? reports FCA figures of an average 2.4% of the amount invested for initial advice and 0.8% a year for ongoing advice, rising to about 1.9% a year once fund and platform charges are included.
Unbiased, from its own survey of advisers, puts typical ongoing fees at 0.5% to 1% a year and says most advisers also charge an initial fee; for portfolios up to £100,000 it reports the most common initial fee as £2,000 to £3,000.
Averages hide a wide range. Fees vary with the complexity of your situation, the size of the money involved and where the adviser is based.
How to tell if a fee is fair
Ask for the total cost in pounds, not just percentages: the adviser's fee, plus platform and fund charges, for the first year and each year after. Ask exactly what the ongoing fee includes, and whether you can stop it.
Compare like with like. A cheaper fee for a one-off recommendation is not the same service as ongoing management of your retirement income. The value of advice is in the decisions it changes — tax, timing and avoiding expensive mistakes — so judge the fee against those.
Common questions
How much does a financial adviser charge per hour in the UK?
Typically £100 to £300 an hour. Which? cites VouchedFor data putting the average at £196 an hour.
What is a typical ongoing fee for a financial adviser?
Usually between 0.5% and 1% a year of the money the adviser looks after. Which? reports an FCA average of 0.8% a year for the adviser's ongoing charge alone.
Is the first meeting with a financial adviser free?
Usually, yes. Most advisers offer a free initial consultation, and must explain their charges before doing any chargeable work.
Sources
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Get my free reportRetireReady is not a financial adviser and this article is not financial advice. It is educational content using figures from cited public sources — not projections or recommendations. We connect you with FCA-regulated advisers.