The average ongoing advice fee has climbed 9 basis points from 2023, according to a new fee benchmarking report from wealth consultants NextWealth.

The report found a growing share of advisers are charging between 91 and 100 bps for ongoing advice.

It also found asset-based fee structures are used by 70% of financial advisers, with fixed fees second most common, used by 29%.

The report looked at pricing structures, fee trends and how financial advisers are adapting charging models. It also looked at how clients perceive fees, where they see value and what influences satisfaction.

The survey confirms that clients of financial advice understand the fees they pay and value the services provided. 85% said they understand the fees they pay, and 76% believed they receive good value for money. 

Trust in the adviser, quality of Financial Planning, and investment performance are the top factors valued by clients – with investment performance ranked third. Regular communication and good use of technology to help clients manage their finances were 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.

“While the regulator is focussed on value, the cost of delivering advice is mounting. 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.”

According to the survey, clients paying fixed fees are more likely to say they represent good value and 19% more likely than those paying asset-based fees to say they receive excellent value for money. Younger investors (under age 55) tend to prefer fixed fees, while clients over 55 prefer asset-based charges.

The report also shows a marked increase in the variety of fee structures used by financial advisers, specifically subscription, capped and hourly rates. The steady trend towards a greater variety of fee models is mostly driven by larger advice firms.

Heather Hopkins, said: “We’re seeing 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.”

The report draws on a comprehensive three-year dataset, including insights from a combined sample of more than 500 financial advisers for 2024 and 2025 and a digital survey of 200 financial advisers conducted between 13 and 20 February.