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Cost Benefits of Engaging an IFA

Costs Vs. Benefits –  How Much Does Accessing an IFA Cost? 

Your IFA fees are based on a number of factors including; the level and extent of the advice you need, how much time it will take, and the size of the assets involved. 

On average accessing an IFA in the UK will cost you between £500 and £5000 depending on the level of expertise that you require, with. It is important to note as well that IFA’s are paid for their services and charged not on commission. 

In general terms however advisers will charge between 1-2% of the total assets of the financial asset – in many cases a lower percentage will be charged for a higher value asset and a higher percentage for lower assets.  

Every adviser is different, but all should be happy to discuss their fees up front. Here are some average fees for typical adviser services. Whilst the costs may seem high, the need for expert advice is paramount – especially when nearing retirement. In many ways accessing the right information and advice will make your assets work harder for you in retirement and actually save you money. 

Here are some average industry costs associated with a number of real-life case studies: 

  • £200,000 Mortgage – the average cost is £425 
  • Consolidating Three Pensions to a Total of £250,000– £13,510 with a £5,000 upfront charge, £8,510 ongoing charges over five years. 
  • £20,000 Investment ISA – the average cost is £1,400 with a £600 upfront payment and an average of £800 ongoing management fees over the next five years 
  • £100,000 Investment – £5,704 with £2,850 upfront and an £2,850 ongoing management over five years 
  • Average hourly rates of £150 -£190 for bespoke works