The cost of most financial advice remained unchanged from last year, despite the complications of the pension freedoms, a survey of advisers listed on the unbiased.co.uk database found, with the median hourly rate charged by advisers holding steady at £150.
In 2013, the median fee charged was £175, 14% higher than in 2015.
The cost of some pensions advice has crept up however. Advice on a £200 a month pension contribution has risen from £500 to £580, while advice on setting up a drawdown scheme on a £300,000 pension fund has gone up from £3,000 to £3,500.
For a £200 a month pension contribution starting at age 25, unbiased.co.uk said that advice could generate an extra £34,300 in retirement savings, 5,813% higher than a non-advised pension. If this plan was followed from age 35, the return on the initial cost of advice would be 4,336% or an extra £25,730 according to the research.
Karen Barrett, chief executive of unbiased.co.uk, said: ‘These findings show quite dramatically how the cost of retirement planning advice can be dwarfed by the long-term benefits…It’s hard to think of a more clear-cut demonstration of value for money.'
‘It’s also important not to underestimate the additional benefits of advice, such as time savings, confidence and peace of mind. Our research has shown time and again that seeking professional advice sooner rather than later is the most game-changing factor when it comes to planning for retirement.’
22% of advisers surveyed also said that their advice can benefit people at any wealth level and they do not set a minimum level of assets.
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