The average ongoing advice fee is up 9 basis points from 2023, with a growing share of advisers charging between 91 and 100 bps for ongoing advice, according to a report from NextWealth.
NextWealth’s fee benchmarking report explored pricing structures, fee trends and how financial advisers are adapting charging models.
The report found that asset-based fee structures are used by 70 per cent of financial advisers, with fixed fees second most common – used by 29 per cent.
However, despite the increase in fees, the survey revealed more than three quarters (85 per cent) of clients said they understand the fees they pay, and 76 per cent believe they receive good value for money.
Trust in the adviser, quality of financial planning, and investment performance are the top factors valued by clients.
Regular communication and good use of technology to help clients manage their finances are also important.
Heather Hopkins, managing director of NextWealth, 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.
“Financial advisers need to strike a delicate balance, ensuring profitability while demonstrating value to clients.”
There has been a marked increase in the variety of fee structures used by financial advisers, specifically subscription, capped and hourly rates.
This steady trend towards a greater variety of fee models is mostly driven by larger advice firms.
“While the regulator is focussed on value, the cost of delivering advice is mounting,” Hopkins said.
“This has forced many firms to increase their fees.”
Respondents said they expect more personalised advice and improved communication when fees rise and the value for money demonstrates that “well informed clients are happy clients”, Hopkins explained.
“The more familiar clients are with financial concepts, the higher the perceived value of advice.”
Generational shift
Elsewhere, the report revealed clients paying fixed fees are more likely to say they represent good value and 19 per cent more likely than those paying asset-based fees to say they receive excellent value for money.
There is a much greater appetite for flexibility, with more advisers offering alternative fee structures.
“Offering flexibility allows firms to cater to the needs of a wide range of clients and is more common in larger firms,” Hopkins said.
Additionally, the survey also found that younger investors (under age 55) tend to prefer fixed fees, while clients over 55 prefer asset-based charges.
Hopkins said: “This suggests that firms looking to attract the next generation of investors will need to offer a variety of models.
“This is important not just for financial advice firms but also platforms who often facilitate these fees.”
The study used a three-year dataset, including fee insights from a sample of over 500 financial advisers for 2024 and 2025 and a digital survey of 200 financial advisers conducted in February 2025.
sonia.rach
