How Much Does Pension Advice Cost? UK Fees Explained

Find out how much pension advice costs in the UK. Learn about fees for pension planning, transfers, and investment management, plus free advice options.

Getting professional pension advice can help you make informed decisions about your retirement savings, ensuring you maximise your income and avoid tax pitfalls. However, many people hesitate to seek financial advice due to concerns about costs.

The cost of pension advice varies depending on the type of advice needed, the complexity of your pension, and the adviser’s fee structure. This guide explains how much pension advice costs, the different fee structures, and when it’s worth paying for advice.

How Much Does Pension Advice Cost in the UK?

The cost of pension advice depends on whether you need:

  1. One-off advice (e.g., reviewing your pension options).

  2. Ongoing advice (e.g., investment management and retirement planning).

  3. Specialist advice (e.g., transferring a final salary pension).

Most financial advisers offer a free initial consultation, after which fees apply.

Typical Pension Advice Costs in the UK

One-off pension consultation £500 – £1,500

Full retirement planning advice £1,500 – £3,000+

Pension transfer advice (final salary scheme) 1% - 3% of the transfer value

Ongoing pension management 0.5% - 1% per year of pension value

The exact cost depends on the adviser’s pricing model and the complexity of your pension arrangements.

How Do Financial Advisers Charge for Pension Advice?

Pension advisers charge in different ways, including:

  1. Fixed Fees

    • A set price for specific advice, such as £500 - £1,500 for a pension review.

    • Suitable for one-off consultations.

  2. Hourly Rate

    • Typically £150 - £350 per hour.

    • Ideal for those needing quick guidance rather than full planning.

  3. Percentage-Based Fees

    • Usually 1% - 3% of your pension pot for advice on pension transfers or consolidation.

    • If you transfer a £100,000 pension, you could pay £1,000 - £3,000.

    • More common for complex cases like final salary pension transfers.

  4. Ongoing Advice Fees

    • Typically 0.5% - 1% per year of your pension fund for continued investment management.

    • If you have a £200,000 pension, this could cost £1,000 - £2,000 per year.

Always ask for a clear breakdown of fees before agreeing to advice.

Do You Need Pension Advice?

You may benefit from professional pension advice if you:

  • Are unsure about retirement planning and need help choosing a pension strategy.

  • Have multiple pensions and need advice on combining or transferring them.

  • Are considering a final salary pension transfer (which legally requires regulated advice for pots over £30,000).

  • Want to optimise pension withdrawals to reduce tax liability.

For simpler cases, free pension guidance is available through services like Pension Wise, but this is not personalised financial advice.

Can You Get Free Pension Advice?

If you need basic pension guidance, you can access free services:

  • Pension Wise (via MoneyHelper) – Free guidance on pension options for those over 50.

  • Citizens Advice – General support for financial and pension queries.

  • The Pensions Advisory Service – Free, independent pension information.

However, these services do not provide regulated financial advice—they only explain your options.

Is Pension Advice Worth Paying For?

While pension advice comes at a cost, it can save you money in the long run by:

  • Avoiding unnecessary taxes on withdrawals.

  • Maximising investment growth.

  • Ensuring you make the right decisions on pension transfers.

  • Providing peace of mind for retirement planning.

If you have a large pension pot or complex financial situation, paying for advice can be a smart investment.

Final Thoughts

The cost of pension advice varies based on the level of service required, but expect to pay between £500 - £3,000 for one-off advice or 0.5% - 1% per year for ongoing pension management.

Before choosing a financial adviser, always:

  • Compare fees and ask for a breakdown.

  • Check qualifications (look for FCA-regulated advisers).

  • Consider free guidance options like Pension Wise for basic help.

If you are making important pension decisions, professional advice can provide valuable financial security in retirement.