Do You Need a Financial Adviser? Here’s How to Decide

Managing your money is one of the most important things you’ll ever do but should you pay someone to help?
Many people in the UK wonder if hiring a financial adviser is worth it, especially with so many DIY investing tools and online guides now available.

Here’s how to decide whether professional advice is right for you, what it can offer, and what to look out for before you commit.

1. What a Financial Adviser Actually Does

A financial adviser helps you make decisions about saving, investing, retirement planning, and protection. They can:

Build a financial plan based on your goals and risk tolerance
Recommend suitable investments, pensions, or insurance products
Review your progress and adjust your plan as life changes
Provide reassurance and accountability during market ups and downs

In short: a good adviser adds clarity and confidence – especially when your finances become more complex.

2. When You Might Benefit from Professional Advice

You don’t need an adviser for every financial decision, but there are times when expert help can make a big difference.

Consider working with a financial adviser if:

You’ve built significant savings or investments and want to optimise for tax efficiency
You’re planning for retirement and need to decide how to draw income from your pension
You’re dealing with inheritance, divorce, or business sale proceeds
You’re unsure about how much risk you should take
You value a long-term financial plan, not just one-off investment choices

In these cases, professional guidance can help you avoid expensive mistakes and uncover opportunities you might miss alone.

3. When You Might Manage Without One

You might not need a financial adviser if:

You’re comfortable making your own decisions using DIY platforms like Vanguard, Fidelity, or AJ Bell
Your finances are simple (e.g. regular saving into an ISA or workplace pension)
You have the time and interest to learn about investing and review your progress annually

If you enjoy taking control and can stay disciplined, DIY investing – using resources like Money Simplified’s calculators and guides — can save you thousands in advice fees.

4. The Cost of Financial Advice

Advisers in the UK typically charge in one of three ways:

Percentage-based fees (often 0.5%–1% of your portfolio each year)
Fixed fees for one-off advice or financial planning
Hourly rates, usually £150–£300 per hour

While the cost can seem high, it’s important to compare it with the value added – for example, better tax planning, fewer emotional decisions, and a clear long-term strategy.

5. How to Choose the Right Adviser

If you decide to get advice, take time to choose carefully:

Check regulation: Only use advisers authorised by the Financial Conduct Authority (FCA) – you can verify this on the FCA Register.
Ask about fees upfront: Avoid percentage-based fees if you prefer predictable costs.
Understand how they’re paid: Independent advisers (IFAs) can recommend products from the whole market; restricted advisers can’t.
Look for chartered or certified qualifications: It shows higher professional standards.
Make sure they listen: A good adviser asks about your goals, not just your money.

6. The Middle Ground: Advice When You Need It

You don’t always have to choose between DIY and full-service advice.
Some firms and online platforms now offer “advice on demand”, one-off financial check-ups or planning sessions for a fixed fee.

This can be ideal if you mostly manage your own money but want expert reassurance before making a big decision.

7. Final Thoughts

Whether you hire a financial adviser or go it alone depends on your confidence, complexity, and comfort level.

If you’re unsure, start by building your own financial understanding. Use tools like our Budget Builder, FIRE Calculator, and Investment Guides to clarify your goals — then decide if expert advice could add value.