Do I need a financial adviser?
When facing a life-changing decision, it can be hard to figure out what to do, so getting financial advice can be vital. We explore when you should seek financial advice and its benefits.
Most people are likely to need financial advice at least once in their lives.
Of these, a large number will benefit from seeking advice or coaching on several occasions, and a few will do so on a regular basis.
So how can you work out what your own advice needs may be? And how do you know when it’s time to find an adviser?
If you’re facing a big decision on which a lot of money depends, advice can be invaluable.
Things like setting up a pension, buying a home or planning for retirement may be rare or even one-off events, so you will probably have very little experience on which to base these crucial choices.
And though you may seek guidance from friends and family or online, neither is likely to give you as much confidence as expert advice from an experienced professional.
When should I get a financial adviser?
There are many occasions in life where advice can make a big difference – some are more obvious than others.
Most people who contact an adviser do so when facing one or more of these decisions:
Other reasons for seeking financial advice may include moving abroad, getting divorced, arranging for yourself or a relative to go into long-term care, or any situation in which you may need to take out a financial product, such as a mortgage, insurance, or a pension arrangement.
According to the Real Life Advice Report conducted by St James's place, the five key ‘drivers’ that trigger people to get financial advice are:
48% seek financial advice to help them with a key milestone or life event.
18% of those surveyed sought financial advice due to the cost-of-living crisis, rising to 24% of 18-34 year-olds.
12% said a change in job status had triggered a need for financial advice or guidance.
27% sought advice when their savings and investments had grown to a point where they thought they should.
How can a financial adviser help me?
A financial adviser will do much more than simply tell you where to put your money.
The whole point of advice is to make your money work for you and help you achieve your goals in life.
So, a good adviser will look at your circumstances, from your current situation to your medium and long-term future, to help you decide upon the best action to take.
For example, if you want advice on how to access your pension, your adviser will first take time to discuss your retirement plans, and so assess your changing income needs over time. Only then will they start to recommend strategies and products.
Last but not least, a qualified financial adviser can find the most suitable product for you, ensuring it is the best possible fit for your circumstances.
Learn more: The signs you should switch financial advisers
How to find a financial adviser
There are two ways to find a financial adviser on Unbiased.
The first way is to use our Matching tool. Just tell us what kind of help you need and our system will match you with the nearest suitable adviser.
You should get a match within 48 hours (often, it’s much quicker).
The second way is to find a financial adviser near you. Enter your postcode to see a list of advisers in order of distance from you.
You can then refine your search (e.g. to find advisers with specialist experience or particular qualifications).
You can also use our adviser checklist to help you prepare for your first meeting with a financial adviser.
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"Experience matters, so check the firm’s track record in handling clients with similar needs.
Transparency is also key, so ensure they clearly explain their fees and services.
Choose a firm or individual who aligns with your financial goals and communicates effectively, as a strong client-adviser relationship is essential for long-term success.
Lastly, a good financial adviser relationship is ideally a long-term one, so try to find one you'll be comfortable working with through the most important periods of your life."
Is this financial adviser right for me?
Most financial advisers will agree to an initial meeting free of charge so you can get to know one another.
Take this opportunity to check that you’ve made a good choice.
A good adviser will be happy to discuss their qualifications and experience, so do ask to see their credentials.
Check that these match up with those displayed on their Unbiased profile.
If you are looking for specialist advice (e.g. long-term care), ensure that your adviser has the relevant qualification(s).
Check them against our adviser qualifications page to find out what each one means.
Also, ask about your adviser’s fees and how they charge. Again, they should be up-front and transparent about this.
See how their fees compare with the market average on our Cost of Advice page, and if they are significantly different, ask why.
It is completely legal and acceptable to receive advice from multiple sources.
Many wealthy individuals and those with complex financial affairs will often use a range of specialist advisers rather than relying on just one person or company.
Learn more: Can I have more than one financial adviser?
What questions should I ask a financial adviser?
When finding a financial adviser it’s easy to get bewildered and accept what you’re told.
Here's some of the questions you should be asking.
1. How do you get paid for providing advice?
You are receiving a service which is going to cost you money, so of course, you need to know how much. Also, remember that nobody works for nothing, so if an adviser’s service appears to be free, you need to know how they are earning their income.
2. How risky are the investments you’re recommending?
You want to understand how much risk you are taking with your money. You need to ask yourself whether you are comfortable to take this risk or not.
3. What experience do you have advising people in my situation?
You want to make sure this is not the first time they are dealing with someone in your situation.
4. How am I protected if things go wrong?
You want to make sure you are protected if the investments were misleading (or a complete scam, meaning you have lost everything).
How much do financial advisers charge?
Your adviser’s fees will be based on many things: what advice you need, how much time it will take, and the size of the assets involved.
Advisers often charge between 1% and 2% of the asset in question (e.g. a pension pot), with lower percentages being charged for larger assets.
So this means higher fees may apply for smaller assets. Depending on your position, you could also expect to pay between £1,700 and £2,500 for once-off financial advice.
Every adviser is different, but they should be happy to discuss their fees upfront.
Should I use a financial adviser or do it myself?
The choice between managing your finances independently or seeking the expertise of a financial adviser is a significant one.
While taking control of your finances can be empowering, financial advisers provide valuable insights and strategies tailored to your specific circumstances. This can be especially useful when facing major life events, like planning for retirement, buying a house or making other big financial decisions.
It's essential to weigh the benefits of personalised guidance against the potential costs and determine what aligns best with your financial goals and comfort level.
Can I get one-off financial advice?
Yes, one-off financial advice allows you to consult a financial professional on specific financial concerns without committing to ongoing services.
This flexible option can provide clarity and reassurance precisely when you need it most.
About the financial advisers on Unbiased
Every financial adviser on our site is authorised by the Financial Conduct Authority (FCA).
None of them can accept a commission in payment, which prevents any conflict of interest when they recommend products.
They fall into two categories: independent financial advisers (IFAs) and restricted advisers.
Independent financial advisers (IFAs)
An IFA will give you impartial, unrestricted advice that considers every financial product on the relevant market.
Restricted financial advisers
This kind of adviser is restricted to the type of products they can advise upon, the number of providers they can offer access to, or both.
However, any customer listing as a restricted adviser on Unbiased will have to make this clear to any new clients.
Seek expert financial advice
Financial advice can provide invaluable support and guidance precisely when you need it most.
Whether you're managing a significant life event, optimising your pension arrangements, or simply ensuring your finances are on the right track, there are many benefits to consulting a professional financial adviser.
Let Unbiased match you with your perfect financial adviser today.
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