Everything you need to know about getting financial advice

We’ll explore what financial advisers actually do, when it makes sense to get guidance instead of advice, when ongoing support is worth the price tag, who you can really trust, and what it’ll all cost – whether you’ve just got a tidy nest egg or enough to start worrying about inheritance tax.

And yes – whether there are financial advisers for "normal people", too.

What a financial adviser actually is

There’s no shortage of people happy to sell you advice on picking penny stocks, making passive income in your sleep, or how to “retire at 30” – and charge you for the privilege.

Being qualified to give real financial advice, though, means they have to fulfil some specific criteria:

• They’re listed on the FCA Financial Services Register
• They hold at least a level four qualification in financial advice 
• They’re bound by strict FCA rules designed to protect you.

A level four means a diploma-level certificate, such as the Diploma in Financial Planning (DipFP) or – even better – the Advanced Diploma in Financial Planning (ADFP).

You don’t just have to take their word that they’re fully qualified. You can – and should check the FCA register yourself – all you need is their name and reference number.

Independent or restricted?

There are two broad categories of financial advisers out there: Independent Financial Advisers (IFAs) and restricted advisers. 

Independent advisers can recommend products from across the whole market – they’re not tied to any particular company or provider.

Restricted advisers can only recommend certain products or providers (for example, just one pension provider, or a limited range).

A good restricted adviser will always be upfront about it. Because they can't offer you a "whole of market" choice, they often aren't the best fit for many people. 

If you’re just looking for help with everyday financial niggles, you’ll likely want someone independent who just calls themselves a financial adviser or a financial planner.

A rose by any other name... is (probably) still regulated by the FCA

Just to keep things interesting, not all financial advisers will call themselves that.

You might see titles like: 

• Investment adviser
• Pensions adviser
• Wealth manager

This just indicates their specific area of specialism. They might have an extra qualification in that area, or just have a lot of experience in it.

Others might call themselves a “financial planner”. While they’re still financial advisers, financial planners often take a bigger-picture approach – helping you connect your money to your life goals, values, and dreams of one day buying Lurpak butter without flinching at the price.

At the luxury end of the scale, an adviser might call themselves a “wealth manager” or a “high-net-worth adviser” – these are the go-to experts for people with significant assets – think £300k+ in investible wealth, family trusts, multiple properties, or even a business or two on the side.

Just be wary of anyone calling themselves a “financial coach”. They could just as easily be someone who’s watched a few YouTube videos and decided they’re ready to fix your finances with a motivational quote and a vision board.

Can you really trust financial advisers?

FCA research shows that only seven percent of us have a high degree of trust in the financial advice sector as a whole – around the same percentage as credit card companies, which is really saying something. 

Maybe that’s because we worry advisers are out for commission. Maybe it’s the fear of hidden fees. Maybe it’s just the nagging feeling that financial advice comes with a catch.

The fact is, though, that advisers have a legal duty to act in your best interests when giving regulated financial advice. They’re required to spell out their fees and how they’re paid, with no surprises.

Since 2012, advisers can’t pocket commission for recommending investments or pensions. The only exception is certain insurance products, like life or critical illness cover – and even then, they have to tell you, in writing.

If you lose money because of bad advice from a regulated adviser, you can complain to the Financial Ombudsman Service and may be able to claim compensation from the Financial Services Compensation Scheme (FSCS).

If your adviser ever dodges questions about any of the above, that’s a massive red flag – run for the hills.

Another comforting fact is that the same research found that 85% of people trust their own financial adviser – perhaps proof that it’s easier to trust someone in person than it is to trust a LinkedIn headshot taken in front of a bookshelf.

DIY or ROI: is getting financial advice worth the cost?

The number of people seeking advice from a professional has been increasing slowly but surely since 2017:

But despite this growth in demand, only around eight percent of us have actually sat down with a financial adviser, rising to 31% for those with investible assets of £100,000 or more.

If so few of us are doing it, is it actually worth bothering with?

To answer this question – as always – we looked at the data. 

One landmark study of close to 100,000 households found:

• On average, people who get financial advice are nearly £50,000 better off over a decade than those who don’t, even after controlling for things like income and behavioural traits
• The benefits are greater for people on lower incomes. Those who were struggling to make ends meet saw their pension wealth jump by 24% by seeking financial advice, compared to just 11% for wealthier individuals
• People who received ongoing financial advice had on average 50% higher pension wealth.

Of course, that’s not to say you should be rushing to an adviser whenever you find a fiver in your coat pocket or have a mild existential crisis at 3am.

But it does mean that when the stakes get high, the benefits almost certainly outweigh the costs.

Of course, the question becomes complex if you're not sitting on six figures and can’t easily justify shelling out by the hour for advice.

In this situation, getting financial guidance often makes better sense – as we'll explain below.

Should you use a financial adviser if you're on a low or average income?

As we mentioned, you'll be hard pressed to find an adviser to take you on as a regular client if you're not sitting on a six-figure nest egg of investible wealth.

This is because most advisers like to charge a percentage of your assets they manage for you. If you only have £50,000 in wealth (aside from your house), that fee can quickly eat into any potential gains – and from the adviser’s side, it often doesn’t add up financially to offer full ongoing support.

At this level, you’re often much better off starting with free tools, reliable online guidance, and a solid understanding of the tax-efficient accounts already available to you.

We’ve got loads of resources to help you get going, from comparisons of providers to how to invest your first £100 and understanding what an index fund actually does. 

Either that, or you could instead look into getting financial guidance. You'd still work with qualified people, but you wouldn't get personalised advice – just someone to check your plan and make sure you have all the info you need to make the best decisions.

This might make sense if:  

• You’ve got a clear goal in mind (like saving for a house or sorting your pension) but just want a second pair of eyes on your plan
• You’re weighing up a big financial decision and want to understand your options before diving in
• You’re not sure where to start and need someone to point you toward the right tools and accounts
• You want to avoid any obvious mistakes or missed opportunities.

On the plus side, it'll cost a lot less. For example, our sister company Most offers unlimited access to fully qualified advisers from £200 per year – that’s as much as some advisers charge just to print out your paperwork and offer you a glass of water.

At what point does ongoing financial advice become essential?

If you’re sitting on £300,000 or more in investable wealth, getting regular advice shifts from “luxury extra” to “pretty much essential”. 

The stakes get higher, the margin for error gets smaller, and a single mistake can cost a lot more. You might be dealing with family trusts, multiple properties, or even a business or two on the side – complex stuff. 

The numbers speak for themselves: self-directed investors tend to make about 5.9% a year, while those with professional advice pull in closer to 7.5%. Over time, that difference adds up to a pretty staggering sum.

In fact, not using an adviser is one of the most common mistakes wealthy people make with their money. 

At this level, you can almost view financial advice as a kind of insurance, helping you to avoid costly errors and missed tax opportunities, steer clear of emotional decision-making, and make sure more of your money goes to your loved ones than the tax man when you finally snuff it. 

Where can I get financial advice?

Gone are the days when getting financial advice meant booking an appointment at the bank, dusting off your smartest suit, and nodding politely at someone behind a mahogany desk.

Today, the choice is yours: you can opt for a face-to-face meeting, a phone call, or a Zoom chat in your pyjamas. 

Finding an adviser to meet in person

Websites like the Personal Finance Society will help you track down a regulated adviser near you – if you prefer to be told face-to-face that your “occasional treat” spending might be getting out of hand.

Shop around online

As with most things, you can search online to find better rates and packages. Sometimes you'll pay less if you opt to communicate over phone or by video call.

Find out what you can get for free (or cheap)

Turns out, sometimes there is such a thing as free advice – and not just your dad after he’s had two pints and decided you should just “buy a house in cash”.

Here's where to start:

• There’re loads of free guidance tools, calculators and resources help you figure out whether it’s better to buy or rent, compare pension providers, and keep track of your general financial health
• Some employers include access to financial advice or guidance as part of their benefits package, so it’s always worth checking what’s on offer at work
• If you’re paying into a pension scheme, you can often take out up to £500 (three separate times) tax-free from your pension to pay for retirement advice. Just ask your provider about the “Pensions Advice Allowance”
• MoneyHelper is a free, government-backed service offering general money and pension guidance. You can phone or WhatsApp for help, and they can point you to trusted services if you need more specialist support – though they can’t give personalised advice
• If you have big financial worries, there’s free help out there. Charities like StepChange and National Debtline offer practical, non-judgemental support for anyone dealing with debt. They might not be qualified financial advisers, but they’re a brilliant first step. 

Mo money, mo choice

With lots of investible wealth comes lots more freedom to choose who you’d like to manage it for you. 

Many high street banks have “private banking” or “wealth management” arms just for high-net-worth clients, sometimes operating as part of a family office. These are normally less pricey than the boutique firms.

This usually means you’ve got a spare £300k-£1 million to invest, though different providers will have different requirements. And of course, advice at this level will come with suitably hefty initial setup and ongoing management fees. 

Which brings us to our next question…

How much does a financial adviser cost?

Annoyingly, there’s no price tag hanging off a financial adviser’s suit jacket.

Instead, the amount you pay will depend on whether your adviser charges:

• An hourly fee
• A fixed fee (per task or project)
• A monthly or retainer fee
• An annual percentage cut of your assets

What – and how – you end up forking out will depend on what services you’re after. 

• If you just need a one-off meeting, you’ll likely pay an hourly fee
• If you need them to create a financial plan, you’ll likely pay a fixed project fee
• If you’re using them to manage your assets, you might end up paying an annual percentage, a retainer fee, and sometimes an initial setup fee.

We’ve broken down all the average for each type of charge here, but for an hourly rate, expect to pay anything from £100-£500. 

Keep in mind that the FCA rules dictate that fees must be disclosed before you sign up. “We’ll work it out later” – like Jimmy McGill cutting backroom deals – is never an acceptable answer from an adviser. 

Some heroes wear blazers: choosing a financial adviser

After you've shortlisted a few advisers you think you might be happy to work with, it's time for the interrogation to begin.

Don’t worry about offending them – they’ll expect a grilling, and might even judge you if you don’t put them through their paces.

Don't get catfished by cufflinks and confidence: questions you need to ask

No matter how much spare change you have to throw around, everyone should be asking a prospective financial adviser five essential questions.

1. Are you regulated by the Financial Conduct Authority (FCA) and can I find you on their register? No FCA authorisation means no ombudsman to complain to and no FSCS protection if it all goes pear-shaped
2. What qualifications do you have? Remember, by law, all advisers must have at least a level four qualification
3. Are you independent or restricted? If they’re restricted, they might be limited in what they can recommend to you
4. How will I receive the advice? Some advisers prefer face-to-face, some email, some phone – there might also be different charges for each
5. How much do you charge? Be sure to shop around to compare, and don’t be afraid to negotiate. 

And that's just for starters. We've got a cheat sheet of every question to ask an adviser, broken down by category. Fill in your email below, and we'll send it right over.

Don't speak to an adviser without knowing these things...

Get our (free!) adviser question and answer cheat sheet

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It’s also worth knowing that some advisers only work with clients who have a certain amount to invest (harsh, we know). Be sure to check this up front.

Serious money on the line? Dig deeper

When you’re considering trusting an adviser with significant investible wealth, you’re going to want to go beyond the basic questions and do a serious deep dive into their methods and approach.

Think of it more like going on a first date – you need to know exactly who you’re dealing with.

Here’s our cheat sheet of the most important questions to ask, broken down by category.

You’ll also need to make some big decisions, such as whether you want to opt for a discretionary or advisory model. With a discretionary service, your adviser manages your investments and makes decisions on your behalf. With an advisory service, they recommend options, but you make the final call on what to do. Compare both models here.

What actually happens when you meet with a financial adviser?

Your first meeting with an adviser will begin with a mutual fact-find. It's usually free, with no commitment required.

Think of it as a cross between a friendly interrogation and speed dating for your finances.

What will they ask about?

They'll want to get the full lay of the land on your financial life, including things like:

• Your goals (e.g., retirement plans, home buying, helping kids, buying the "good cheese" at the supermarket without stressing)
• Your income, regular expenses, and debts
• Existing savings, investments, or pensions
• Family circumstances or anything else that might affect your finances
• What’s keeping you up at night, money-wise
• Whether you've ever used an adviser before

Often, you’ll fill out a questionnaire in advance, or your adviser will talk through these questions with you during your first meeting.

Wealth mode unlocked: the deep-dive questions

If you're hiring an adviser to be a partner in managing your wealth, they'll want to go into a lot more detail. They’ll want to understand:

• Your attitude to risk and how you’d feel if your investments dropped in value
• Whether you want to stay hands-on or hand over the reins
• What your real-world goals look like, whether it’s funding your kids through uni or finally buying that holiday home you’ve convinced yourself is a “great investment opportunity”. 

Mutual interrogation society: it's not just you in the hot seat

This is as much about you feeling at ease as it is about them understanding your finances. You can also ask them whatever questions you like (within reason, maybe don't ask them for a hot stock tip).

While you're chatting, ask yourself: are they really listening? Are they explaining things in plain English? Do you feel comfortable opening up about money? 

After all, using an adviser is only valuable if you feel heard and understood.

Next steps

If you both want to move forward, your adviser will outline the next steps. That might be a formal financial plan, specific recommendations, or a follow-up meeting to dive deeper into the details.

If you’re just there for a financial MOT or general guidance, it might be as simple as, “You’re doing well, keep it up”, and walking away with a feeling of pride.

As an ongoing arrangement, most wealthy clients meet with their financial adviser at least once a year for a performance review of their portfolio, and to check that nothing’s changed. 

Behind the scenes, they’ll stay busy documenting, adjusting, and keeping an eye out for anything that could throw your plan off track.

I’m sitting on around £100,000. What could a financial adviser do for me?

With a six-figure sum, you’ve got real choices to make – and plenty of ways to trip up or miss out. At this level, an adviser might help you with:

• Using your full ISA allowance, pension contributions, and capital gains tax allowances so less of your money goes to the taxman
• Building a proper investment portfolio (funds, stocks, bonds, etc.) that actually matches your risk level and goals
• Working out how much to put towards retirement, overpaying your mortgage, or saving for kids’ university fees
• Sort out life insurance, critical illness cover, or income protection so your family’s safe if things go wrong
• Weighing up buying a second home or investment property versus investing
• Making sense of share schemes, bonuses, or other perks from your employer.

I’ve got half a million to my name. What could a wealth manager do?

Once you reach the half-a-million mark, your finances start to look a lot more like a business than a simple savings account. This is where a specialist wealth manager can really start to earn their fee by:

• Making sure you don’t pay a penny more than you need to in tax, often using complex structures like trusts, investment schemes, restricted mass-market investments and family investment companies
• Creating a personalised, multi-asset portfolio – possibly across different currencies, countries, or specialist funds
• Setting up wills, trusts, and gifting strategies to pass on wealth efficiently and avoid a big tax hit for family
• Advising on property portfolios, buy-to-let, business exits or succession, and the tax angles for each
• Structuring charitable giving for maximum impact (and tax benefit)
• Coordinating with accountants, solicitors, and other professionals so your whole financial life is joined up and running smoothly.

Bottom line

Financial advisers haven’t always had the best PR. Maybe it’s the jargon, the confusing job titles, or the lingering memory of someone’s uncle getting stung in the ’90s. 

But the data tells a different story. On average, people who get financial advice end up nearly £50,000 better off over a decade than those who don’t, and those who get ongoing advice typically build far more pension wealth and make fewer costly mistakes along the way. 

Most of us will only need a bit of one-off guidance now and then, but the point is: advice isn’t just for the mega-rich or the financially frazzled. When you’re making a big decision, facing a major life change, or starting to build serious wealth, it might just be one of the smartest moves you make.

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