Do I Need a Financial Advisor in the UK?
Most UK savers don't need an IFA. But five specific situations turn 1% a year into the cheapest money you ever spend. The trick is knowing which side of the line you're on.
Annual cost on a £500,000 portfolio
Every year, on the same £500,000. Compounded over 30 years the gap is six-figure.
When an IFA earns the fee (and when they do not)
| Situation | IFA worth it? |
|---|---|
| Salary + ISA + global tracker | Usually no |
| DB pension transfer above £30k | Yes - legally required |
| Estate above £325k IHT band | Yes - specialist saves five figures |
| Decumulation across ISA + SIPP | Often yes |
| Cross-border tax position | Yes |
| Business sale within 18 months | Yes - pre-sale planning matters |
Pay for the specific expensive knowledge, not the generic badge.
Key takeaways
Most UK savers do not need a financial advisor: an ISA, a pension, a global tracker and the discipline to leave them alone beats most paid advice
An IFA earns their fee on specific moving parts: defined benefit transfers, inheritance tax planning, decumulation, business sales, and cross-border tax
Typical 2026 fees are 1-3% upfront and 0.5-1% per year on assets, which compounds into six-figure drag over a working life
The only adviser label that matters under FCA rules is independent vs restricted - ask the question at the first meeting and walk if the answer is fudged