Getting a financial planner is a smart move towards achieving your long-term goals. Whether you’re looking for advice on super funds, insurance policies, tax implications or estate planning, understanding the cost structures is key. But what’s a normal fee for a financial planner in Australia? This guide covers the types of financial planning services, fee structures and what you can expect to pay for professional advice tailored to your situation.
Costs, Benefits and Who Needs It
Financial planning is strategic advice across a range of financial areas including budgeting, investment strategy, retirement savings goals and debt management. It helps individuals and families get clarity on their money goals and make informed decisions about their financial future.
Benefits of Financial Planning:
- Aligns your financial strategy with your life goals
- Holistic advice across superannuation, investment property and insurance premium management
- Informed decision-making around financial products and financial services
- A roadmap for managing cash flow, liquid assets and estate planning
Who should get financial advice?
- Individuals buying real estate, insurance agents or investment portfolios
- People approaching retirement or managing a complex financial situation
- Clients seeking a fee-for-service financial coach or digital advice providers for low-cost financial advice
Fee Structures
Financial planner fees vary depending on the service, scope of advice and pricing structure. Choosing between a traditional in-person financial advisor, online platforms or a low-cost financial adviser depends on your goals, financial situation and comfort with technology.
1. Fee-for-Service
This one-off fee is for specific financial planning advice. It’s transparent and avoids conflicts of interest from commissions or product incentives.
2. Hourly Rates
Hourly rates are $150 to $400 for single issue advice, strategy consultation or one-off financial advice sessions.
3. Ongoing Advice Fees
Ongoing advice fees cover regular reviews, updates to your investment plan and ongoing management. These fees are $2,500 to $5,000 per year.
4. Asset-Based Fees
This model charges a percentage of assets under management (AUM) – 0.5% to 1.1%. It’s used for clients with investment portfolios or funds in investment accounts that require ongoing management.
5. Flat Annual Retainer
A flat rate for comprehensive planning and ongoing support. This fee suits those with complex financial lives, $2,000 to $7,000 per year.
Table: Financial Planner Fees
| Fee Structure | Typical Cost (AUD) | Best For |
|---|---|---|
| Fee-for-Service | $1,500 – $4,000 | One-time fees for financial planning advice |
| Hourly Rate | $150 – $400/hour | Short consultations or basic advice |
| Ongoing Advice Fees | $2,500 – $5,000 annually | Clients needing regular investment advice |
| Asset-Based Fees | 0.5% – 1.1% of AUM | Wealth management and portfolio-based services |
| Flat Annual Retainer | $2,000 – $7,000 annually | Holistic plan and ongoing relationship |
Key Factors Behind Fees
Many factors affect the real cost of financial planner services:
- Type of advice: Comprehensive planning costs more than advice on things like life insurance or a budget planner template.
- Scope of advice: Broader services (e.g. investment property, tax planning, retirement strategy) cost more.
- Experience of adviser: An experienced advisor or CFP® will cost more than an entry-level service advisor.
- Location: Fees in urban areas (e.g., Melbourne) may be higher due to demand and living costs.
- Fee model: Whether the advisor uses percentage-based fees, a fee for advice, or a fee for investment management will affect cost.
Average Financial Adviser Fees
According to data from leading Australian financial associations, the average cost of a financial plan in Australia is between $2,500 and $4,000. For ongoing advice, clients pay around $3,500 annually. However, fee-only advisors and fee-based advisors may structure costs differently depending on their service model and client base.
Choosing a Planner on a Budget
To make an informed decision, ask:
- What is the financial advisor’s fee structure?
- Will I get comprehensive advice or just basic advice?
- Are there incentives from product providers or commissions involved?
- Is the advice to people like me—based on my money situationStep, life goals, or financial position?
- Is the service tax deductible or are any costs offset by deductions for investment advice?
Get an initial consultation and ask for a quote or proposal tailored to your financial goals, whether you’re planning for retirement, buying an investment property, or building a balanced portfolio.
Choosing an adviser who puts ethics, transparency and long-term value first—like those aligned with Freedom Financial Planning—means your financial strategy will be tailored to your unique goals and life stage.
FAQ
What is the average cost of a financial adviser in Australia?
$2,500–$4,000 for a financial plan, $3,000–$5,000 annually for ongoing advice.
Is financial advice worth the cost?
Yes, especially when dealing with complex decisions like estate planning, insurance payout options or managing an aggressive investment strategy.
Are financial advice fees tax-deductible?
Some fees for investment advice may be tax-deductible—check with the ATO or your accountant.
Can I get free or low-cost financial advice?
Yes, services like Financial Counselling Australia, the Department of Human Services, or Financial Information Service offer free advice and access to budgeting services.
What to look for in a financial adviser?
An adviser with an AFSL, experienced in your area of service, and transparent about financial advisor fees and conflicts of interest.
