How much do financial advisers charge for pension advice?

If you’re approaching retirement or reassessing your pension arrangements, professional financial advice can be one of the most valuable investments you make. A well-structured retirement plan doesn’t just offer clarity, it provides confidence, tax savings, and peace of mind.

But how much should you expect to pay for this guidance, and what do you actually get in return?

Let’s demystify pension advice fees so you can make an informed choice based on value, not just cost.

Understanding pension advice fees

The cost of pension advice varies depending on the adviser’s fee structure, the complexity of your situation, and the scope of the work involved. Most financial advisers in the UK offer one or more of the following pricing models:

1. Percentage based fees

This is the most common model for managing pension assets over time. Advisers charge a percentage of the value of your pension pot, typically between:

• 0.5% to 1% per year for ongoing advice and portfolio management.

• 1% to 3% for one-off work, such as setting up a pension drawdown or consolidating pensions.

For example, if you have a £500,000 pension and your adviser charges 1%, that’s £5,000 per year for ongoing advice. For larger portfolios, percentage fees may be tiered.

What’s included? Ongoing investment management, rebalancing, retirement income planning, and annual reviews all designed to keep your plan aligned with your goals and market conditions.

2. Fixed fees

Some advisers provide fixed-cost packages for specific services, which can be a transparent and predictable way to pay for one-off advice. These typically cover:

• Pension reviews

• Retirement income strategy

• Annuity comparisons

• Tax planning around drawdown or death benefits

Expect to pay between £500 and £3,000, depending on complexity. This model is particularly useful for clients who need targeted advice rather than full ongoing management.

3. Hourly rates

Although less commonly used for pension advice, some advisers charge by the hour usually between £150 and £300 per hour. This option may suit clients who want occasional guidance or a second opinion on a specific matter.

Hourly fees can quickly add up, so it’s important to request a clear estimate before proceeding.

What does the fee cover?

Quality pension advice is about far more than picking investments. It should be holistic, structured, and aligned with your long-term goals. Whether charged by the hour, as a fixed project, or as a percentage, a comprehensive pension review typically includes:

• Detailed analysis of your current pension schemes, including defined contribution and defined benefit pensions

• Cash flow modelling to project future income, expenditure, and life events

• Tax optimisation, including strategies for minimising income tax, capital gains, and inheritance tax (IHT)

• Investment review with recommendations based on your risk tolerance and retirement timeline

• Retirement income planning, such as phased drawdown strategies or blending pension drawdown with annuities

• Estate planning considerations, such as how to pass on pension wealth efficiently

Advisers may also coordinate with other professionals such as tax specialists or solicitors to ensure your pension plan supports your broader estate and wealth goals.

Is It worth paying for pension advice?

In many cases, absolutely, especially for high net worth individuals or those with complex arrangements.

Consider the following scenarios:

• You have multiple pension pots from different employers, and need a consolidated, tax-efficient strategy.

• You’re considering drawdown and want to balance income needs with investment growth and legacy planning.

• You have safeguarded benefits (like a final salary pension) and are evaluating whether a transfer is appropriate.

• You want to integrate your pension with your estate plan, especially to mitigate IHT or provide for your spouse or children.

In each of these cases, good advice can save far more than it costs by avoiding unnecessary tax, improving investment outcomes, or preventing costly mistakes.

Moreover, for high earners facing the tapered annual allowance or Lifetime Allowance (despite the charge being abolished, it still affects planning), bespoke advice is critical.

Transparency builds trust

The best advisers don’t just deliver expertise, they do so with complete transparency.

Here’s what to expect from a reputable firm:

• A clear explanation of fee structures before any work begins

• A detailed engagement letter outlining the scope of services

• No hidden fees or commissions, just straightforward, client-focused guidance

• Ongoing communication and value, with regular reviews and updates as your circumstances change

The cheapest advice isn’t always the best but the best advice will justify its cost through clarity, control, and long-term results.

Making the right choice

When selecting a financial adviser for pension planning, consider more than just cost:

• Are they independent and free to recommend the full range of pension products?

• Are they regulated by the FCA and qualified to offer pension transfer advice?

• Do they specialise in retirement and estate planning, or are they generalists?

• Can they provide testimonials or case studies relevant to your situation?

Thinking about reviewing your pension strategy?

At Oculus Wealth, we believe in clear, personalised advice and transparent fees from the outset. Whether you’re five years from retirement or refining your legacy plans, we’re here to help you create a confident, tax-efficient pension strategy.

Book a consultation today to discover how expert advice can transform your retirement outlook.