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How much does a financial adviser cost in the UK in 2026? Most advisers charge a percentage of the money they look after. Industry benchmarking puts the average ongoing advice fee at 0.83% a year, with most firms falling between 0.5% and 1%. Initial advice, the work of building your plan, is usually charged separately. First Equitable’s ongoing service starts from 0.3% a year, and the first consultation is free.
Key takeaways
- The 2026 average ongoing fee is 0.83% a year, up from 0.77% in 2025.
- Most UK advisers charge between 0.5% and 1% of assets a year.
- Initial advice is charged separately, historically averaging around 1.8% to 2.4% of the amount invested.
- Platform and fund charges sit on top of the adviser fee. This is the cost most people miss.
- Every adviser must give you their charges in writing before you commit to anything.
The four ways advisers charge
Almost every fee you will be quoted is one of these, or a combination of them.
| Charging method | How it works | Usually used for |
|---|---|---|
| Percentage of assets | A percentage of the money invested or managed | Initial advice and ongoing service. The most common method by far. |
| Fixed fee | An agreed amount for a defined piece of work | A one-off plan, a pension review, a specific report |
| Hourly rate | Charged for time spent | Less common now, occasionally used for advice-only work |
| Commission | Paid by the provider, not you directly | Only permitted on protection and insurance, not investments or pensions |
Commission on investment and pension advice was banned in 2013. If anyone offers you investment advice that is “free” because the provider pays them, that is a reason to ask a great many more questions.
What the market actually charges in 2026
Fee benchmarking for 2026 puts the average ongoing advice charge at 0.83% a year, up from 0.77% in 2025. Research by Unbiased in February 2026 found most UK advisers charging between 0.5% and 1% of assets under management annually, usually tiered so the rate falls as the portfolio grows.
Initial advice is a separate charge. The FCA’s research found an average initial fee of 2.4% of the amount invested, and more recent figures suggest around 1.8%. On a £250,000 investment, a 1.8% initial fee is £4,500.
The cost most people forget
The adviser fee is not the only charge. Two others sit on top, and together they often cost more than the advice itself:
- Platform charge. The cost of the account holding your investments, typically 0.2% to 0.4% a year.
- Fund charges. Paid to the managers of the funds you hold, anywhere from around 0.1% for a tracker to well over 1% for active management.
Add them up and the difference is stark. On a £400,000 portfolio, total annual costs range from roughly £3,400 a year at a low-cost whole-of-market firm to around £6,600 a year at a large restricted firm. Same portfolio, £3,200 a year apart, which compounds substantially over a retirement.
So the question to ask is never just “what is your fee?” It is “what will I pay in total, all in, each year?” Any adviser should be able to answer that in pounds, not just percentages.
What First Equitable charges
We publish our approach because we would want the same before committing to anything.
- Initial consultation: free, at our cost, with no obligation.
- Initial advice: a fixed fee for your financial planning report, then a tiered percentage of the portfolio implemented. The rate falls as the value rises.
- Ongoing service: optional, from as little as 0.3% a year.
- Couples advised together are treated as one combined amount, which usually means a lower overall rate.
- No minimum contract. You can stop the ongoing service at any time.
For context, here is what our entry ongoing rate looks like against the 2026 market average:
| Portfolio value | At 0.3% (our entry rate) | At 0.83% (2026 market average) |
|---|---|---|
| £100,000 | £300 | £830 |
| £250,000 | £750 | £2,075 |
| £500,000 | £1,500 | £4,150 |
| £1,000,000 | £3,000 | £8,300 |
To be straight with you: 0.3% is our lowest ongoing rate, for a light-touch service that keeps your investments current. A fully managed service with regular review meetings and wider planning costs more. The rate you pay depends on the service level you choose, and we quote it personally at your first meeting. Full detail is on our charges page.
Is it worth paying for advice?
It depends entirely on the decision. Paying 0.83% a year to have someone pick funds you could have picked yourself is poor value. Paying a fee to avoid transferring out of a final salary pension you should have kept, or to sequence your retirement income so you do not hand HMRC more than you need to, can be worth many times what it costs.
The pattern is straightforward: advice earns its fee where the decision is complex, irreversible, or carries a large tax consequence. That is why pension transfers, retirement income and estate planning are where most people find it pays.
Five questions to ask before you commit
- What will I pay in total each year, in pounds, including platform and fund charges?
- What exactly do I get for the ongoing fee, and how often will we meet?
- Are you independent or restricted?
- Is there a minimum contract, and what does it cost to leave?
- Are you Chartered, and what is your FCA firm reference number?
Financial adviser cost FAQs
What is the average financial adviser fee in the UK in 2026?
The average ongoing advice fee in 2026 is 0.83% a year, up from 0.77% in 2025. Most UK advisers charge between 0.5% and 1% of assets annually.
Do I pay a financial adviser upfront or ongoing?
Usually both, and they are separate charges. An initial fee covers building and implementing your plan. An optional ongoing fee covers reviewing it afterwards.
Are platform and fund charges included in the adviser fee?
No. Platform charges of roughly 0.2% to 0.4% and fund charges from around 0.1% to over 1% sit on top. Always ask for the total annual cost in pounds.
Can a financial adviser be free?
Not for investment or pension advice. Commission on investment and pension advice was banned in 2013, so it must be paid by you and disclosed in writing.
Is a financial adviser worth the fee?
It depends on the decision. Advice tends to earn its cost where a decision is complex, irreversible or carries a large tax consequence.
Get a straight answer on cost
First Equitable is a whole-of-market firm of independent financial advisers with offices in Liverpool and Chester. Your first consultation is free and at our cost, and you will get a personalised quote before you commit to anything. See our Liverpool and Chester pages, or read our full charges.
Information correct as at July 2026 and based on the rules for the 2026/27 tax year. Tax rules, allowances and thresholds can change, and the value of any tax relief depends on your individual circumstances. The Financial Conduct Authority does not regulate some forms of estate planning, trusts or tax advice. The value of investments can fall as well as rise and you may get back less than you invested. This article is general information only and does not constitute personal advice. You should seek advice specific to your circumstances before acting.
