Wealth management and financial planning can make a significant difference to your long‑term financial wellbeing. But one of the most common questions we hear is: “How much should I budget for wealth management?”
Today, we will break down what you might expect to pay in 2026, how fees are structured, and what value you might receive in return.
Understanding Wealth Management Costs
There’s no one‑size‑fits‑all answer because fees depend on the type of service you receive, the complexity of your financial situation, and how your adviser or wealth manager charges for their time and expertise.
In the UK, typical fee structures include:
Percentage‑based fees: Many wealth managers charge a percentage of the assets they manage for you each year, often called an asset under management (AUM) charge. According to industry data, this typically ranges between about 1% and 1.5% per year, although it can vary based on portfolio size and service level.
Fixed fees: Some advisers charge a fixed annual fee or set project cost, depending on the type of work involved (e.g. retirement planning, investment review or financial plan preparation).
Hourly or project rates: Advisers might offer ad‑hoc advice on an hourly basis or project cost for specific tasks. According to MoneyHelper, UK financial advice hourly rates can range roughly from £75 to £350 per hour, with an average around £150.
Typical Fee Examples
To give some context:
- A £500,000 portfolio with a 1.25% AUM fee would cost approximately £6,250 per year.
- A bespoke financial plan with deeper analysis might incur an upfront fixed fee along with ongoing management costs. Some firms will mix fixed fees with percentage charges.
These fees can also change depending on how much personalisation and ongoing review you require. For example, regular reviews, rebalancing of your portfolio, tax planning and retirement income strategies all add to the level of service and often the cost.
What’s Included – And What Isn’t
It’s important to understand what your fees cover. In a well‑structured wealth management relationship, fees typically include:
- A detailed financial plan
- Investment portfolio construction and management
- Regular reviews and strategic rebalancing
- Access to wider financial planning expertise
However, fees do not usually include product costs such as fund running costs or platform charges (these are separate and disclosed in fund documents). Always ask for a clear breakdown of costs and ask your adviser to show all charges in writing.
Budgeting for 2026
When budgeting for wealth management services in 2026, consider:
- Your overall investible assets
- The complexity of your financial situation (e.g. pensions, multiple accounts, trusts)
- Whether you need regular advice or one‑off recommendations
- The type of advice (holistic planning vs. investment management only)
For many clients, budgeting between 0.8% and 1.5% of total investible assets per year provides a reasonable range to expect ongoing cost. But it’s essential to get personalised figures from any adviser you’re considering working with.
The Value of Advice
While fees might seem significant, the value of good advice can outweigh the costs, especially when it helps optimise tax efficiency, refine retirement plans and avoid costly financial mistakes. Research suggests many investors underestimate the impact of professional advice on long‑term financial outcomes.
Key Takeaways
- Wealth management costs vary widely by service type and provider.
- Assets‑under‑management fees are common, but fixed and hourly rates also exist.
- Always request a full breakdown of fees before committing.
- Carefully consider what services you need versus what you want.
If you’re unsure where to start, booking an introductory call with an independent adviser can help clarify what level of service and what fees are most appropriate for you.
If you would like to book in for an introductory call with us at Resolve Financial Solutions, please get in touch.