Do I need a financial adviser?

There might be times in your life when deciding what you should do with your money isn’t easy. There are so many financial products out there, it can be difficult to get your head round what’s best for you.

This is where a financial adviser could be handy.

What is a financial adviser?

Financial advisers suggest how you can make the most of your money and recommend products to help you do that. You might turn to them for advice on:

financial planning e.g. for your retirement
investing or saving
what to do with a lump sum you’ve received e.g. redundancy payment or inheritance
buying property/taking out a mortgage
significant life changes e.g. starting a family, becoming widowed or getting divorced
estate planning (preparing a plan of action on what will happen to your assets after you die)

In any of these situations, a financial adviser should try to recommend suitable options for your specific needs based on your financial and personal circumstances.

Financial advisers don’t offer debt advice though. So, if it’s debt advice you’re looking for, we can help.

We offer a range of support, including budgeting advice, checking you’re getting all the benefits you can claim and helping you with suitable debt solutions.

We’ll talk you through all your options and then give you as much time as you need to think it over. If we’ve recommended a debt solution and you decide to go ahead, we’ll help you get set up.

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or find out what getting debt advice involves.

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Types of financial adviser

Independent financial advisers

Independent financial advisers are supposed to give unbiased recommendations about the full range of financial products available on the market.

Restricted advisers

Restricted advisers give recommendations on a limited range of products e.g. an adviser from your bank who advises you on the products available from that specific lender.

How much does a financial adviser cost?

Financial advisers charge, and their fees vary. So, if you’re looking for one, it’s a good idea to shop around.

An adviser should explain to you how much their advice will cost up front. They may charge a flat fee or an hourly rate. Either way their rates should be set out clearly, so you understand how much it’s going to cost. Agree how you’ll pay before you get started.

How do I choose a financial adviser?

Cost isn’t the only think to take into consideration when choosing a financial adviser. Firstly, you need to know what type of advice you want. There are lots of reasons you might need advice and advisers often specialise in different areas.

A number of websites list financial advisers and their areas of expertise:

Personal Finance Society this tool from the financial planning professional body can help you find a qualified adviser in your area.
Unbiased is a free service to match you to a fully regulated financial adviser, mortgage broker or accountant.
Vouchedfor includes reviewed and vetted financial, legal and accounting advice.
Society of Later Life Advisers (SOLLA) is a not-for-profit society that can help if you’re looking for an adviser with Later Life Adviser accreditation.
MoneyHelper’s Retirement Adviser Directory could help you find an adviser able to help you make decisions about your retirement and other financial planning issues.

Personal recommendations can be useful when you’re choosing a financial adviser. See if friends or family members can vouch for anyone.

Alternatively, some workplace pension schemes and unions will recommend certain advisers to their members.

Then do your own research too. Read reviews, check out testimonials etc. It’s hard to judge how good a job a financial adviser is doing in the short term, so find out what previous clients have to say about any adviser you’re considering using.

What to expect from an adviser

When you first meet with your financial adviser, they should give you clear information on the services they offer, including:

whether the advice is independent or restricted
how in depth the advice will be
how much you'll pay for the advice

Your adviser should also give you details about:

the services they offer
the firm they work for (if they work for one)
who the firm is authorised and regulated by
any financial products they recommend
your right to change your mind about taking out a product
how long you’ll be tied into a product
what to do if you don’t understand something or need extra information
their complaints process
the cost of any product

If the adviser doesn't give you this information, make sure you ask them for it before you agree to anything.

Is your financial adviser qualified?

Before you choose your financial adviser, check they’re qualified.

All financial advisers must:

have achieved level 4 or above of the national qualifications and credit framework
have a statement of professional standing (SPS). This means they have signed up to a code of ethics and have completed at least 35 hours of professional training each year. SPS certificates must berenewed annually, so you might want to check your adviser‘s is up to date
be registered with the Financial Conduct Authority (FCA). This means they meet the correct standards, and you get more protection if you’re not happy with the service

Don’t be afraid to ask an adviser about their qualifications and statement of professional standing. they should be happy to provide you with these.

Check a financial adviser is registered with the FCA on the Financial Services Register.

At Money Wellness, we understand it can be nerve-racking to confide in someone about money. That’s why if you’d like free debt advice that you wouldn’t be able to get from a financial adviser, we’ll do everything we can to make the process as painless as possible. Find out more in our guide Getting debt advice from Money Wellness.