The ongoing advice fee charged by advisers has risen nine basis points on average since 2023, according to NextWealth’s fee benchmarking report.
The rise takes the average close to the 1% mark, with a growing number of advisers charging between 91 and 100 basis points for ongoing advice. Larger advice firms tended to have higher average fees, the researchers found.
The report explores pricing structures, fee trends and how financial advisers are adapting charging models. It also looks at how clients perceive fees and their satisfaction levels. It draws on a three-year dataset, including fee insights from a combined sample of over 500 financial advisers for 2024 and 2025, and a digital survey of 200 advisers conducted in February 2025.
The survey found 85% of clients understand the fees they pay and value the services provided, and 76% believe they receive good value for money.
Trust in advisers, quality of financial planning, and investment performance are the top factors valued by clients, with investment performance ranking third, the researchers found.
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In terms of fee structures, the majority of advisers use asset-based fee structures (70%) with fixed fees the second most commonly used structure (29%).
The researchers also found an increase in the variety of fee structures used by financial advisers, with subscription, capped fee and hourly rates being reported. This trend towards a greater variety of fee models is mostly driven by larger advice firms, according to NextWealth.
Heather Hopkins, MD of NextWealth (pictured), said: “The financial advice market is under increasing scrutiny, with regulatory change, consumer expectations and competitive pressures reshaping how firms set and justify their fees.
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“Financial advisers need to strike a delicate balance, ensuring profitability while demonstrating value to clients. This report helps advisers strike that balance by providing independent fee benchmarks and defining the aspects of advice most valued by clients.
“While the regulator is focussed on value, the cost of delivering advice is mounting,” Hopkins continued. “This has forced many firms to increase their fees. Despite this, more than three quarters of advised clients say they receive good value for money.
“The report shows transparency and openness are key to evidencing value.”
