Pensions advice costs an average of £3000 according to Which?

1 October 2018

Pensions advice costs £3000 according to Which? 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%.

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    • Sp avatar Brett Cranfield

      Brett Cranfield, previously a Private Banking Manager for the UK Wealth division at Lloyds Banking Group, he managed a diverse portfolio …