Tue. May 30th, 2023

Costs and Benefits of Independent Pension Advice

Independent pension advice is the key to making sure you make sound financial decisions with your money, while increasing its worth over time.

There are various types of advisers, so it is essential that you select one who fits well with your financial goals and needs. Here are a few factors you should keep in mind when searching for an independent financial adviser:


Costs associated with independent pension advice vary considerably, depending on what services are required of an IFA. An IFA might charge a set fee for certain tasks such as creating a financial plan or transferring pensions; they could also charge monthly management fees that cover ongoing management of your investments.

Advisor fees can be an unwelcome burden for savers, but there are ways to cut the costs. Take advantage of the Pension Advice Allowance which entitles you to withdraw up to PS500 tax free each year from your pension pot to cover retirement advice expenses; some employers also provide discounted support but be sure to confirm this first.

Advisers typically charge a variety of fees for their work, such as hourly rates (ranging from PS75 per hour up to PS350) or fixed or percentage charges based on the value of your portfolio. A fixed or percentage charge usually provides more clarity regarding overall costs – consider opting for this model when hiring advisers.

Some advisers don’t collect fees directly from clients but instead charge subscription-based services at either monthly or annual fees ranging from $50 to $500 monthly, with the exact level of support you receive depending on how much support is necessary from their adviser.

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Other advisers will include their fees on their profiles, making it easier for you to compare charges before making your choice. VouchedFor*, an advisory comparison website, found that initial fees ranged from 0.5%-5% of investable assets with ongoing charges typically sitting around 0.79-9 % across their platform.

An adviser will offer impartial advice on a range of pension products and providers, making sure you find options best suited to your needs. They can help explain any potential financial implications, help calculate when retirement will be possible and find out the most efficient ways to access pension funds; additionally they may assist in consolidating multiple employer pensions into one account.


Independent pension advice can assist with making better choices. An advisor can suggest suitable investment products based on your unique requirements and objectives.

As an example, they might suggest investing in both stocks and bonds according to your risk appetite, providing insight into where best to put your money for maximum tax efficiency and long-term return.

Some advisers charge fees equivalent to 0.5% of your total asset value; other providers may offer payment plans like flat fees or hourly rates.

Most advisors offer free consultations, giving them a chance to understand your financial goals before charging you for their services. This gives you an opportunity to assess if they provide what you require from them.

Finding an independent pension adviser should be straightforward through searching online or asking friends and family for recommendations. Most will have websites or phone numbers, with some even offering no-commitment quotes for their services.

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Additionally, some financial advisors provide additional services beyond retirement planning expertise. For example, some offer free “Pension Health Check+” consultations so you can discuss savings plans, retirement strategies and income needs with an expert.

Remember, while staying informed on financial news can be helpful, being prudent about pensions requires great caution and knowledge. With so much noise surrounding pension options it may be hard to select the most appropriate ones for yourself.


If you’re saving for retirement, consulting an independent financial adviser is often beneficial. They can assist with helping to understand options available to you and how best to save more.

There are various ways an adviser may charge you, with some offering fixed fees while others basing their charges off a percentage of assets managed. It all depends on the complexity of your situation as well as work required.

One of the most frequently charged fees is a fixed fee for individual services such as setting up an ISA or pension transfer; these costs typically range between PS500 and PS5,000 depending on the size and complexity of each job.

Monthly advice fees, which can either be fixed rates or percentages of investments, are an increasingly popular payment model that allow investors to spread out the cost. They allow regular installment payments of the initial charge over time.

Some advisers offer multiple means of charging for their services, so it is wise to discuss this during your initial meeting. Some will charge hourly (PS150 is typical in the UK), while others might offer flat monthly or percentage fees to cover advice provided or an investment portfolio valuation service.

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Your cost for pension advice depends on the type of assistance and level of support needed, for instance consolidating legacy ISAs or pensions with multiple providers, an adviser can take all of the hassle away by spotting any exit penalties or benefits being foregone while creating a long-term plan to save for retirement.

As a general guideline, financial advice fees typically comprise one percent of assets under management; however, some advisers charge either higher fees for smaller account balances or even reduce them when working with larger ones.

Jeffrey Augers
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By Jeffrey Augers

Jeffrey Augers is a highly skilled and experienced financial analyst with over 12 years of experience in the finance industry. He has a proven track record of delivering exceptional financial insights and recommendations to clients, empowering them to make informed decisions and achieve their financial goals. Jeffrey holds a Bachelor's degree in Finance from the University of Michigan, and an MBA from the Wharton School of Business.