Can I get one-off financial advice?

In today's complex financial landscape, many of us face critical decisions that can significantly impact our future.

Whether you're receiving an inheritance, planning your retirement, or navigating other big financial decisions, accessing professional financial advice can be invaluable.

But what if you don't want or need a long-term relationship with an adviser?

We explore one-off advice in more detail.

What is one-off financial advice?

One-off financial advice refers to receiving personalised guidance from a financial adviser on a specific financial matter or decision without committing to an ongoing relationship.

Typically, this involves a single consultation or series of interactions focused on addressing a particular issue, such as pension consolidation, investment selection, inheritance planning, or purchasing a property.

Can I really get financial advice just once?

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.

One-off vs ongoing financial advice: which should I choose?

When considering financial advice, it's important to distinguish between one-off and ongoing financial services.

One-off financial advice typically addresses specific, immediate financial concerns or decisions.

It's ideal if you require clarity on a particular issue, need an immediate financial review, or simply prefer not to commit to a long-term relationship. 

In contrast, ongoing financial advice involves a long-term relationship with a financial adviser who provides continuous guidance, regular reviews, and proactive management of your financial affairs.

Ongoing advice is suited to individuals with complex financial situations, those seeking regular portfolio management, or anyone desiring frequent, tailored advice as life circumstances evolve. 

Deciding between one-off and ongoing advice depends on your personal needs, financial complexity, and comfort level with managing your finances independently. 

Here's a quick summary of the main pros and cons of one-off financial advice:

When is it useful to get one-off financial advice? 

There are numerous scenarios where one-off financial advice can prove extremely beneficial.

Let's explore some of the most common situations: 

Planning for retirement 

Planning your retirement is crucial, but it can also be overwhelming.

A one-off consultation with a financial adviser can help you determine your retirement goals, review your existing pension arrangements, and establish a clear, actionable retirement plan tailored to your needs and ambitions. 

Arranging to retire early 

If you're considering early retirement, getting professional advice is essential.

A one-off financial review can help you understand the viability of retiring early, assess your financial readiness, calculate potential pension benefits, and develop strategies to ensure a comfortable and sustainable retirement. 

Pension consolidation 

Having multiple pensions from different employers can be confusing and inefficient.

A one-off session with a financial adviser can provide clarity on whether consolidating your pensions into one manageable scheme is beneficial for your specific circumstances, ensuring you understand the pros, cons, and implications of consolidation. 

Getting advice on transferring a defined benefit pension

Transferring a defined benefit pension is a big decision that shouldn’t be taken rashly.

As a defined benefit pension pays a guaranteed income, it’s extremely valuable compared to a defined contribution pension, where you build up a pot of money to use during retirement.

If you are considering transferring a defined benefit pension, you must legally get financial advice if it’s worth £30,000 or more.

You’ll also need to have a plan on how to invest and access your pension if you transfer it to a defined contribution one.

Getting life insurance 

Choosing the right life insurance policy can be complicated.

A financial adviser or specialist insurance broker can help identify the appropriate type and amount of coverage you require, considering factors such as your family circumstances, mortgage obligations, and future financial security. 

Deciding what to do with an inheritance or lump sum 

Receiving an inheritance or a lump sum can dramatically alter your financial situation.

Consulting a financial adviser can help you make informed decisions about investment options, tax-efficient strategies, debt repayment, or even charitable giving, ensuring your newfound wealth enhances your financial security. 

Family planning

Planning to start or expand your family brings significant financial considerations, including budgeting, savings, insurance, education funding, and estate planning.

A financial adviser can help you map out a clear financial strategy, providing peace of mind as your family grows. 

Finances after a divorce

Divorce significantly impacts your financial landscape.

Engaging a financial adviser for a single consultation can help you reorganise your finances, manage any settlements effectively, protect your assets, and plan confidently for your independent financial future. 

How to find a one-off financial adviser 

Finding the right financial adviser for one-off advice involves a few important steps: 

1. Check qualifications: Always ensure your adviser is authorised and regulated by the Financial Conduct Authority (FCA). You can verify their status on the FCA's Financial Services Register.

2. Seek recommendations: Personal recommendations from trusted sources, such as family, friends, or colleagues, can be invaluable.

3. Use online resources: Various online platforms can connect you with vetted financial advisers specialising in one-off consultations. Websites such as Unbiased allow you to compare advisers based on qualifications, reviews, and specialisms.

4. Arrange an initial consultation: Many advisers offer a free initial consultation, enabling you to gauge their expertise, approachability, and whether they align with your financial goals and communication style. 

What are the best questions to ask a prospective financial adviser?

Asking a prospective adviser the right questions will ensure you're both aligned on your goals and will help get the most out of your one-off consultation.

It's also the perfect time to gauge their qualifications and experience of working with people in a similar situation to yourself.

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. 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.

Bear in mind that an adviser can only really answer this question once they have learned a certain amount about you as an individual.

3. 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).

What does one-off financial advice cost? 

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.

What are the different types of financial adviser fees? 

Your financial adviser may offer you a number of different ways to pay them, depending on the services you require and the time period involved.

Here are the kind of charging structure you may come across, ranked from most common to least common.

1. Fixed fee

The adviser will perform a specific service, such as setting up an annuity, for a set price agreed in advance.

You should ask for written confirmation of what is included in the fee.

2. Percentage of assets

An adviser who manages your investment portfolio over a period of time may charge a percentage of the portfolio’s total value.

So, this means your fee grows as your portfolio’s returns rise.

3. Hourly rate

Some advisers may charge an hourly rate for certain services (£150 per hour is the UK average).

This can be for quick jobs such as moving investments on your behalf.

You should make sure your adviser gives you an estimate of how long the work is likely to take.

In your first meeting with a financial adviser, you should discuss what fees apply and how much it’ll cost, so you know what to expect going forward.

The value of financial advice 

Financial advice can make people, on average, nearly £48,000 better off in pensions and financial assets compared to those who don’t take advice, according to the International Longevity Centre (ILC).

In a report in 2017, the ILC discovered that Brits who took professional financial advice between 2001 and 2006 enjoyed an average increase in their assets of nearly £48,000 after 10 years, compared to those who took no advice.

The benefits of advice were particularly significant for those with less disposable income, and also for people who took advice more than once.

The combined benefits of financial advice over the 10-year period work out as approximately 2,400% greater than the initial cost of the advice.

The study, produced by the ILC with Royal London, compares people who took financial advice with those who didn’t, by looking at their assets, such as pensions, savings and investments over a decade.

The study also focused on people across two different wealth levels: ‘affluent’, those who feel they are comfortably well off and ‘just getting by’ - those whose income is similar to their outgoings.

Of the report’s many findings, perhaps the most interesting one was the revelation that the lower-income group benefitted from financial advice more than the affluent people did.

Ongoing or follow-up advice adds more value

While the report confirmed a significant wealth boost from one-off advice, it also revealed the greater benefits of additional or ongoing advice.

It compared those who had taken advice only once (at the start of the decade) with those who had also received advice two years before the end of the decade.

Those who had taken additional advice were found to be, on average, 61% better off overall.

However, this figure must be treated with caution, as the report does not account for the initial wealth levels of these two groups.

It could simply be that those with more assets were more inclined to seek ongoing advice.

Nor does the study identify how much additional advice was taken over the decade, but these findings make it highly probable there is a measurable boost from taking extra advice.

Get expert financial advice

One-off 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, the benefits of consulting a professional financial adviser are clear.

By choosing one-off advice, you can gain crucial insights tailored to your specific needs, helping you make informed, confident decisions without ongoing commitment.

Ultimately, investing in professional financial advice, whether one-off or ongoing, is an investment in your financial future, offering clarity, security, and peace of mind.