Is getting financial advice worth the money you pay?

How do you compare the cost of financial advice, against the value it might give you?

Financial advice can be expensive, potentially costing thousands of pounds per year.

However, an adviser’s services may pay for themselves many times over if they identify tax savings, improve your investment returns, or help you avoid a costly mistake.

So, whether professional advice would be “worth” the money depends on factors like how much cash you have, your tax position and how complex your financial affairs are.

Here’s more information to help you decide if it’s the right option for you - and the potential alternatives.

Financial Conduct Authorty (FCA)-regulated advice provides personal recommendations on the financial products and actions that will help you achieve your goals, based on a thorough understanding of your assets, income and spending, tax position, future plans, family needs and other circumstances.

You can seek advice either about a specific aspect of your finances, such as retirement, or to look at the overall picture holistically.

It can cost hundreds or thousands of pounds, either as a one-off or an annual fee. The way you're charged will depend on the type of advice and the company you choose.

If you need help with a single issue, such as a pension transfer, you’ll likely be charged a fixed fee or an hourly rate. The total cost will depend on the complexity of your case, the risks, and the sums of money involved.

If your adviser will provide ongoing support, such as managing a portfolio that provides your retirement income, they’ll usually charge a percentage of your total assets – often 0.5-1 per cent per year.

For example, if your assets total £500,000, this would be around £2,500-5,000.

An FCA-authorised adviser should discuss their services and fees during your first conversation.

Financial advice has various non-monetary benefits, like the reassurance of a professional opinion and the time saved on managing your own affairs.

But it might be simpler to think about it in terms of whether the financial value will exceed the cost.

Here are some scenarios where that’s likely to be the case:

If you don’t have a lot of money to invest or if you don’t pay a lot of taxes, the cost of advice might exceed the value.

Instead, you might want support or guidance in another form.

Here are some other sources of information, education, guidance, and support that fall outside the umbrella of financial advice:

From April 2026, the FCA will allow financial firms, such as your bank or investment platform, to offer a new service called targeted support.

Firms will be allowed to identify groups of customers who have similar needs, and make suggestions to these groups on actions or changes that might improve their finances.

These suggestions can be more specific than financial guidance but will be less personalised than advice. In many cases, this support will be free.

If you’re interested in targeted support, look out for communications from your financial service providers.

Before signing a contract, be sure that you’ve completely understood the costs of advice.

In particular, check if your adviser will charge an exit fee if you decide to leave or stop the service. If you don’t feel that the costs are clear or justified, ask for more information. If you’re not satisfied with the explanation, speak to another adviser.

There are tens of thousands of advisers in the UK, charging different fees for different levels of service. Given the potential return of getting it right, it’s worth spending some time finding exactly the right one for you.

When investing, your capital is at risk and you may get back less than invested. Past performance doesn’t guarantee future results.