Cost of financial advice falls 14%

The rate fell from £175 in 2013 to £150 in 2014. However, whilst the hourly charge has gone down, fees for various specific advice scenarios have remained largely static over the last two years.

Fees charged for initial financial reviews remained static from 2013 at £500, while advice for an investment strategy for a £50,000 inheritance for a 50-year old seeking medium term growth remained unchanged at £1,500.

The only increase in fees was for advice on converting a £100,000 pension fund into a lump sum and annuity, which increased from £1350 to £1500 median fee from 2013 to 2014.

Karen Barrett, chief executive of unbiased.co.uk, said:

"We would urge consumers to not only understand costs but also the level of service they will receive, so as to make a judgment on which adviser delivers best value for money overall.

"Our recent value of advice research found that those who had taken advice receive an additional income of £3,654 every year of their retirement, based upon a pension pot of £100,000 – a clear demonstration of the benefit of taking professional advice."