Is financial advice worth paying for?

Financial Planning

There are plenty of reasons that you might think paying for financial advice isn’t worth it or appropriate for you. You’ve managed your financial planning fine so far; you can probably use the internet to research and decide what to invest in; the cost of advice is too high. The list goes on.

And if the costs do out weigh the benefits then that’s the right decision! But where’s the tipping point? And when might paying for professional financial advice be the right decision for you and your family?

Let’s not beat around the bush. People seek financial advice because they want to improve their financial position beyond what they think they could achieve themselves. They’re paying for an expert to take responsibility and help them make decisions which could have a huge impact on their quality of life and peace of mind.

This advice could be around the best way to invest money; how to build an investment portfolio; or choosing the best investment options to build a retirement fund. It might be how to ensure you maximise your tax allowances. Or it could be help with those crucial decisions you need to make at retirement, on what to do with the pension you’ve carefully nurtured.

Many people will readily admit that dealing with their finances makes them anxious, takes up too much time, or that they prefer not to make investment decisions in order to avoid making a mistake.

And while there’s plenty of guidance online to help you when you do inevitably have to confront these decisions, you’ll still be alone when making those decisions. We believe there are somethings that are too important to approach as a hobbyist. After all, most people would prefer to have a doctor make an assessment on their health rather than select their own medication!

What is the monetary value of financial advice?

Research undertaken by unbiased.co.uk in 2015 calculated that those who had taken advice when planning their retirement had on average £48,279 more in their pension pot (after tax relief and interest) compared to those in a similar income bracket who did not take advice.

  Start at age 35 Start at age 25
Cost of advice on a £200/month pension contribution £580 £580
Boost to retirement savings extra £25,730 in pension pot (excl. tax relief and interest) extra £34,300 in pension pot (excl. tax relief and interest)
Return on the initial cost of advice 4,336% 5,813%

That’s pretty compelling. And research from Canada suggests that people with financial plans feel they are saving more, living well, and experiencing higher levels of overall contentment in their lives – regardless of net worth – versus those who do none or limited financial planning. So getting financially organised could be good for the soul as well as your wallet!

At-retirement pension decisions

When you finally get to retirement and have to decide what you’re going to do with your pension, getting professional financial advice can be critical in determining the amount you’ll have to live on in later life. This is probably the biggest financial decision you’ll ever make, so getting it right for you is paramount.

There are plenty of ways to persuade yourself against paying for something you don’t think you need. The strongest one in favour of professional, regulated, financial advice is that good advice will cost you less than no advice at all will cost you.


Your first step to finding out how financial advice could help you is only a phone call way. Our friendly advice team will explain how we might be able to help and what the cost will be to you. Then it’s up to you whether to go ahead or not. No pressure at all. Surely it’s better to find out now?

Call 0333 241 9900 for a free consultation with one of our financial advisers.


Sources: Unbiased and http://www.fpsc.ca/value-financial-planning

We hope you find the education zone interesting and useful, but please remember it shouldn’t be viewed as financial advice.