Cost is usually one of the first questions expats ask once they start looking seriously at pension advice – and it’s a reasonable one, since fees vary considerably depending on what kind of pension work you actually need. Here’s a realistic breakdown of what drives the cost, rather than a single number that won’t apply to most people’s situation.
Why There’s No Single Answer
Pension advice fees depend heavily on the complexity of what’s being assessed. Consolidating two straightforward defined contribution pots into a SIPP is a fundamentally simpler piece of work than a defined benefit transfer assessment, which by law requires a specifically qualified Pension Transfer Specialist and a formal, documented comparison between guaranteed and transferred outcomes. Charging structures also differ by firm – some work on a flat fee, some on a percentage of the funds involved, and some on an hourly or fixed-scope basis for initial reviews.
Simple Consolidation: Generally the Lower End
For straightforward defined contribution consolidation – no safeguarded benefits, no defined benefit pensions involved – advice costs tend to sit at the lower end of the market, reflecting the more limited scope of analysis required. Some advisers offer this kind of work at a flat fee agreed upfront once they understand how many pensions are involved and their approximate combined value.
Defined Benefit Transfer Advice: Why It Costs More
Because UK law requires a formal, qualified assessment for any defined benefit transfer above £30,000 – covering your health, dependants, other assets, and a detailed comparison between your guaranteed income and what a transfer could realistically achieve – this type of advice costs meaningfully more than simple consolidation. For expats specifically, this often involves two advisers working together: a UK FCA-authorised Pension Transfer Specialist for the transfer decision itself, and a locally licensed cross-border adviser, such as through Just Service Global, for the receiving scheme and wider planning. Combined, this typically runs into several thousand pounds given the depth of analysis and number of parties involved – a cost that should always be set out clearly in writing before any work begins, not discovered afterwards.
Percentage-Based vs Flat Fees
Some firms charge a percentage of the transfer value rather than a flat fee – something the FCA has flagged as a potential conflict of interest, since it can create an incentive to recommend transferring regardless of whether it’s genuinely the best outcome. It’s worth asking directly how an adviser is paid, and whether that changes if the recommendation is to stay in your existing scheme rather than transfer – a properly regulated adviser should be entirely comfortable answering this.
QROPS: Additional Setup and Ongoing Costs
A QROPS transfer typically carries its own setup fee on top of any advice fee, plus ongoing platform and scheme administration charges that are often higher than an equivalent UK-based SIPP, reflecting the additional jurisdictional and regulatory complexity involved. This is worth factoring into any comparison between a QROPS and a UK SIPP – the headline advice fee is only part of the total cost picture.
What You Should Always Get in Writing
Before any advice work begins, a properly regulated adviser should set out: the total fee or fee structure, what happens if you decide not to proceed after the initial assessment, whether the fee changes depending on the recommendation, and what ongoing costs apply if you continue with advice after the initial transaction. If any of this feels vague or is only explained verbally, that’s worth treating as a signal to ask more questions before committing.
Where to Go From Here
We’ve covered the full defined benefit advice process, including the two-adviser structure and what the fact-find involves, on our Final Salary & Defined Benefit Pension Transfers page. For simpler consolidation, see our Expat Pension Transfers page. If you’re also looking at a UK mortgage as an expat, our Premier Expat Mortgages homepage covers that side of our work.
Frequently Asked Questions
Is pension advice free?
Initial conversations are generally free; costs apply once formal advice work begins, and should always be set out clearly beforehand.
Why does defined benefit advice cost more than simple consolidation?
It’s a legal requirement involving a qualified Pension Transfer Specialist and a detailed, documented comparison – a fundamentally more involved process than consolidating straightforward pots.
Should I be worried about percentage-based fees?
Worth asking about directly – the FCA has flagged this fee structure as a potential conflict of interest, since it can incentivise recommending a transfer.
Get in touch with an overview of your pensions and we’ll be upfront about what kind of advice process applies and roughly what it involves.
