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The Key Benefits of a Financial Advisor

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Philip Teale

The above animation highlights the key survey findings of why UK adults use a financial advisor, including:

  • 35% say they use a financial advisor because they don’t have the expertise to do things themselves.
  • 54% use an advisor to achieve “peace of mind”.
  • 50% look to an advisor to help them discern the most appropriate investment vehicles for their needs, and to help them gain a clear plan to achieve their financial goals.
  • The main criteria used to judge an advisor’s performance is the investment returns from their portfolio (63%).

Source: Hymans Robertson Investment Services Consumer Survey 2023

How Beneficial is a Financial Advisor?

A financial advisor can be hugely beneficial to those facing pension confusion, questions about how to manage their investments, or a complex estate. An advisor may be less helpful for those with limited savings or a small portfolio, as an advisor’s fees (likely in the $1,000s) may be beyond justification at that point.

Is it Worth Getting a Financial Advisor?

An advisor may not be worth it if you are confident with tax planning, navigating pension rules and managing the powerful emotions of investing. However, an advisor is usually invaluable to those needing expert financial guidance, or who want to delegate the heavy lifting involved with managing their wealth.

What Exactly Does a Financial Advisor Do For You?

A financial advisor can help with pensions, investment strategy, tax planning, financial protection and estate planning. Some help with mortgages and financial protection (e.g. life insurance). Others specialise in niche services, such as pension transfers or expat financial planning. Overall, an advisor provides financial clarity, peace of mind, expert insight and accountability.

Is it Worth it to Pay 1% to a Financial Advisor?

A 1% fee may be worth it if the advisor can help you deliver a decent “real return” over time (your returns after fees, taxes and inflation). 1% is a fairly standard AUM (assets under management) fee for a financial advisor in many developed countries. For instance, an advisor managing a £500,000 portfolio might take a $5,000 fee for that year.