Do I need a financial adviser?

A regulated financial adviser can: 

• tell you what’s best for you and your money  
• help you meet your financial needs and goals.  

This might include options you’ve never heard of, especially if you’re new to saving or investing. 

A good financial adviser will find out about your situation and check if financial advice could improve your circumstances. 

For example, an adviser might recommend you: 

• take out financial products or services that could grow your money faster than cash savings 
• use tax allowances to reduce your tax bill 
• change your plans if the financial market shifts. 

They can also estimate: 

• your future income, spending, tax and savings to see if you’re on track to meet your goals – such as retiring from work or paying off your mortgage  
• what returns you could get if you made their recommended changes, such as increasing your pension contributions or where you invest your money.  

Financial advisers can help once or over time. You can either get: 

• one-off financial advice to meet a certain need, such as after a bereavement or divorce when your financial situation might have changed 
• ongoing advice if you want an adviser to manage your money over time, such as regular reviews to keep up with changing priorities.  

There’s almost always a cost for getting financial advice, but you might not have to pay  an up-front fee in all cases.  

For example: 

• you might pay a low (or no) fee if an adviser gets paid commission from a provider for selling you a certain product – such as a mortgage or insurance 
• the cost of advice might be added to any monthly payments of a product.  

An adviser must tell you how the cost of advice is charged and paid.

An adviser must always charge a fee for pension and investment advice. 

If you’re offered a free pension review or free investment advice, this is likely a scam designed to steal your money. For more help, see our guides about avoiding scams.

If you pay fees for financial advice, the cost depends on the adviser and the type of advice you need.  

For example, you’ll normally either pay: 

• A fixed fee for all the advice. 
• An hourly rate – often between £100 to £350 an hour. 
• A fee based on a percentage of the money you’re investing – typically 1-3% initially and 0.5%-1% for ongoing advice. If you were investing £100,000, this means you'd pay between £1,000 to £3,000 initially and £500 to £1,000 for ongoing advice.   

You must be told how much the advice will cost before you commit. 

Paying for financial advice can be worth considering if: 

• You’re new to saving or investing and are not sure where to start. An adviser will help you work out your priorities and recommend products to meet your needs.  
• Your financial needs are complex, and specialist advice could help you understand your options. For example, Inheritance Tax planning or looking after someone who depends on you financially. 
• You need help making a specific decision, such as choosing a mortgage. For example, a mortgage broker could search the market and recommend a cost-effective product suited to your needs. 
• You’d like someone to manage your finances for you, including changing your plans following any life events – such as a divorce or bereavement. 
• You’ve received a lump sum and are not sure what to do with it, such as an inheritance or redundancy payment. 
• You do not have the time to manage your own finances. 

Financial guidance explains the things you need to know about making financial decisions, but does not recommend specific products or actions you should take. 

It can help you: 

• get the information you need to make your own decisions – if you’re comfortable doing your own research  
• prepare the right questions to ask a financial adviser – if you choose to get advice. 

You can use our free online guides and tools to learn about your money and pension options.

You can also contact us for free and impartial guidance online or over the phone.

If paying for financial advice is right for you, see our guide Choosing a financial adviser.