According to new research by Which?, people getting professional advice on their pension pay an average of £3000.
In May 2018, Which? surveyed more than 100 financial advisers across the UK to uncover the different ways that advisers charge people for a range of retirement scenarios. The research found that financial advisers charged an average of £2897 to consolidate multiple pensions worth £150,000 into a single plan, with the most expensive adviser charging £6000 and the least expensive asking for just £300. The five range of scenarios they enquired about were as follows:
|Scenarios ||Average cost ||Highest quote ||Lowest quote |
|Retirement advice on a pension worth £100,000 ||£1837 ||£4000 ||£300 |
|Transferring multiple pensions worth £150,000 into a single plan ||£2987 ||£6000 ||£300 |
|Taking 25% from a £150,000 pension and entering a drawdown plan || £2383 ||£300 || |
|Investing a £60,000 inheritance in investment funds || £1472 ||£3000 ||£250 |
|Annual review for a portfolio of investment funds worth || £524 ||£2000 ||£125 |
The survey also found that 79% of advisers charge an upfront fee based on the amount to be invested, the average being 2.7%. A similar proportion of advisers (87%) charged for ongoing advice and annual reviews in a similar way at an average rate of 1.3%.