The UK financial advice gap widened from 12 million to 14.6 million adults in 2026, according to new data from financial research website Boring Money.
The shortfall has grown despite a surge in retail investing. Low-cost investment platforms such as Freetrade and Trading 212 have encouraged more Britons to buy stocks and shares, driving a 19 per cent year-on-year increase in do-it-yourself investment accounts.
A third of the UK population now holds investments. However, half of Britons with assets of £10,000 or more report that they do not need professional advice, leaving millions managing their funds without formal support.
Changes in fees, technology, regulation and service models could help close the gap. Consumers seeking support can choose between traditional financial advice, free guidance, financial coaching, or a new model known as targeted support.
Understanding financial advice options
Full financial advice provides tailored recommendations on specific products and personal wealth strategies for a fee. By contrast, financial guidance offers free, non-personalised information on money topics without product recommendations. The government-backed MoneyHelper service provides guidance, including its Pension Wise service for people approaching retirement age.
Financial coaching helps individuals define goals and examine their relationship with money for a fee. Coaches are not regulated to recommend specific products or investment strategies.
Targeted support, introduced in April 2026, allows firms to suggest products based on limited customer data such as age and financial objectives. For example, an investment platform might suggest a stocks and shares ISA alongside a higher-risk ready-made portfolio to a young investor. However, as of July 2026, only 13 firms have applied to offer targeted support, indicating the service may take time to achieve widespread adoption.
Financial adviser regulation and specialist services
The Financial Conduct Authority estimates that around 31,000 financial advisers operate in the UK. Advisers must be authorised and regulated by the Financial Conduct Authority.
Consumers can verify an adviser using the Financial Services Register. The register confirms authorisation, specifies permitted services, and protects against scammers impersonating legitimate firms through verified contact details.
Advisers deliver ongoing financial planning across savings, investments, pensions, tax, and insurance, or provide one-off advice for single transactions. Financial advice is particularly useful during major life events such as marriage, divorce, starting a business, moving abroad, or receiving a lump sum.
Specialist advice covers several core areas:
- Pensions and retirement: Options for taking tax-free lump sums, managing pension drawdown while remaining invested, or purchasing annuities.
- Tax planning: Structuring assets efficiently for inheritance tax, income tax, capital gains tax, and dividend tax.
- Long-term care: Planning for care costs and overall money management in old age.
- Investments: Creating portfolios tailored to personal risk tolerance and targets.
- Insurance and protection: Securing cover against unexpected events such as redundancy or illness.
Asset minimums and advice fees
High entry thresholds prevent many consumers from securing full financial advice. Wealth management firms frequently enforce minimum asset or income requirements.
Lloyds Wealth requires clients to hold £100,000 in savings, investments, or pensions, or earn £100,000 in sole annual income. Fidelity sets a minimum threshold of £100,000 to invest, while Interactive Investor states its advice service is intended for clients with at least £100,000. Canaccord Wealth typically works with individuals holding over £250,000 in investable assets.
Flat fees can also make advice expensive for modest portfolios. JPMorgan Personal Investing charges £900 for entry-level advice. For an investor with £30,000 in assets, this represents a 3 per cent fee, which sits at the top end of the 1 to 3 per cent typical range cited by MoneyHelper. On a £50,000 pot, the £900 charge equals 1.8 per cent.
Employees excluded from formal advice due to asset limits may find financial wellbeing support, guidance, or coaching through workplace benefit packages.
Impact of fees on long-term wealth
Multiple fee layers can erode investment gains over time. Ongoing financial advice fees typically range between 0.5 per cent and 1 per cent annually, according to MoneyHelper.
Platform or account fees add another 0.15 per cent to 0.35 per cent annually, though some providers charge flat rates. Investment management firms also deduct fund management fees directly from funds, with expensive active funds charging over 1 per cent a year.
Combined ongoing fees can reach 2 per cent or more each year. If investments generate an average annual growth rate of 7 per cent, cumulative fees and inflation significantly reduce overall returns. Investors with smaller pots may choose one-off advice or manage funds independently using self-invested personal pensions (Sipps) or low-cost investment platforms.
Finding advisers and comparing advice types
Consumers can find advisers through personal recommendations from friends, family, colleagues, solicitors, or accountants. Online directories such as Unbiased and VouchedFor also match clients with advisers. Directory listings are paid for by advisers but ranking order is not affected.
Trade bodies provide directory tools, including the Personal Finance Society search tool and the Chartered Institute for Securities and Investment Wayfinder service.
When selecting an adviser, consumers must distinguish between restricted and independent advice. Restricted advisers, such as JPMorgan Personal Investing, recommend only their own products and services. Independent advisers examine products across the entire market. Citizens Advice recommends independent advice because it offers broader choice.
Questions to ask before hiring an adviser
Many advisers offer free initial consultations, providing an opportunity to review credentials and spot potential red flags before entering an agreement.
Prospective clients should check the following key factors:
- Qualifications: Advisers must hold at least a Level 4 qualification in financial advice recognised by the Financial Conduct Authority.
- Advice scope: Confirm whether advice is independent or restricted and what financial areas are covered.
- Product range: Verify whether recommendations draw from the whole market.
- Communication: Ensure services are offered face-to-face, via video call, or in writing, and that complex topics are explained clearly without excessive jargon.
- Fee structures: Clarify whether charges rely on flat fees, hourly rates, or percentage-based fees. Commission is prohibited on investment products and allowed only on non-investment services such as insurance.
