Financial Advisor Salary Calculator UK 2026

Q: What qualifications do I need to become a financial advisor in the UK?

The minimum requirement is a Level 4 Diploma in Financial Planning (offered by the CII or LIBF). Many advisers progress to Level 6 Advanced Diploma or Chartered Financial Planner status via the CII. The CFP (Certified Financial Planner) qualification is internationally recognised and respected in the UK.

Q: How much do financial advisors in London earn compared to the UK average?

London and South East financial advisors typically earn 25–40% more than the UK average. A senior IFA earning £70,000–£80,000 nationally might earn £90,000–£110,000 in London. Private wealth management roles in the City can pay £150,000–£300,000+ including bonuses.

Q: How long does it take to become a qualified financial adviser in the UK?

Most people become a qualified financial adviser within 1–3 years of starting in the industry. The Level 4 Diploma typically takes 12–18 months of study alongside work. Many firms offer structured training programmes where you work as a paraplanner while studying. The FCA requires registration before advising clients independently.

Calculate Your Financial Advisor Salary

Experience Level

Role Type

Qualification Level

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Your Estimated Salary & Take-Home Pay

Estimated Salary Range

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* Take-home pay calculated using 2025/26 PAYE tax rates: Personal allowance £12,570, Basic rate 20% (£12,571–£50,270), Higher rate 40% (£50,271–£125,140). NI: 8% on £12,570–£50,270, 2% above. No pension or student loan deductions included.

Financial Advisor Salary Ranges UK 2025/26

Role / Experience	Salary Range	Take-Home (mid)
Trainee / Paraplanner (Level 4 studying)	£22,000 – £32,000	~£1,770/month
Newly qualified IFA (0–2 years)	£35,000 – £50,000	~£2,700/month
Experienced IFA (3–7 years)	£50,000 – £80,000	~£3,900/month
Senior IFA / Chartered	£70,000 – £120,000	~£5,300/month
Partner / Director	£100,000 – £200,000+	~£7,000–£10,000/month
Wealth Manager (private banking)	£60,000 – £150,000	~£4,500–£8,000/month

Self-employed directly authorised IFAs can earn significantly more, particularly if they manage substantial client assets. Earnings above are for employed or AR (appointed representative) advisers unless otherwise stated.

Qualification Salary Premiums

Qualification	Provider	Salary Premium	Time to Achieve
Level 4 Diploma in Financial Planning	CII / LIBF	Required to advise	12–18 months
Level 6 Advanced Diploma	CII	+£5,000 – £10,000	Additional 12–24 months
Chartered Financial Planner (CFP)	CII / CISI	+£10,000 – £25,000	3–5 years experience required
Certified Financial Planner (CFP™)	CISI	+£8,000 – £20,000	3+ years + exam
CFA (Chartered Financial Analyst)	CFA Institute	+£15,000 – £40,000	4–6 years

Employed vs Self-Employed Financial Adviser

	Employed Adviser	Self-Employed DA IFA
Typical earnings	£35,000 – £120,000	£50,000 – £300,000+
Revenue model	Salary + bonus	Client fees (% AUM or fixed)
FCA regulation	Via employer / network	Directly authorised
PI insurance	Employer provides	Must obtain own (£2,000–£8,000/yr)
Business risk	Low	High
Pension	Employer scheme	Self-funded
RDR compliance	Employer responsibility	Own responsibility

RDR note: Since the Retail Distribution Review (RDR, 2013), financial advisers cannot earn commission from product providers. All advice fees must be agreed transparently with clients, either as fixed fees, hourly rates, or percentage of assets under management (typically 0.5%–1% per year).

Career Path: Financial Advisory

Admin / Client Services

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Junior Paraplanner

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Senior Paraplanner

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Trainee Adviser

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Qualified IFA

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Senior IFA

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Partner / Director

Most people enter financial services via administration, client services or paraplanning roles, studying the Level 4 Diploma alongside work before becoming a qualified adviser. The full journey from entry level to senior IFA typically takes 5–8 years.

London vs UK Average: Financial Advisor Salaries

Role	UK Average	London / City	Premium
Paraplanner	£28,000 – £42,000	£38,000 – £58,000	+35%
Newly Qualified IFA	£35,000 – £50,000	£45,000 – £70,000	+35%
Experienced IFA	£50,000 – £80,000	£70,000 – £110,000	+38%
Senior / Chartered IFA	£70,000 – £120,000	£100,000 – £170,000	+40%
Private Client Wealth Manager	£65,000 – £150,000	£100,000 – £250,000	+40%

Frequently Asked Questions

What is the average salary of a financial advisor in the UK?

An experienced IFA (Independent Financial Adviser) in the UK earns between £50,000 and £80,000 per year. Newly qualified advisers start at £35,000–£50,000. Senior and Chartered Financial Planners typically earn £70,000–£120,000, with partners and directors reaching £100,000–£200,000+. Self-employed IFAs with substantial client books can earn considerably more.

Do financial advisors earn commission in the UK?

No. Since the Retail Distribution Review (RDR) came into effect on 1 January 2013, financial advisers in the UK are not permitted to earn commission from product providers such as insurance companies or fund managers. They must charge transparent fees to clients, either as a fixed fee, hourly rate (typically £150–£350/hour) or percentage of assets under management (typically 0.5%–1% annually).

What qualifications do I need to become a financial advisor in the UK?

The minimum requirement to give regulated financial advice is a Level 4 Diploma in Financial Planning, offered by the Chartered Insurance Institute (CII) or the London Institute of Banking & Finance (LIBF). Many advisers progress to Level 6 Advanced Diploma or the prestigious Chartered Financial Planner status. The CFP (Certified Financial Planner) qualification from CISI is internationally recognised. All advisers must also be registered with the FCA.

Is it better to be a self-employed or employed financial advisor?

Self-employed directly authorised IFAs have the highest earning potential, keeping a larger share of client fees, but bear all business costs including PI insurance (£2,000–£8,000/year), FCA fees, compliance costs and practice overheads. Employed advisers at banks, networks or wealth managers have lower potential but more security, employer pension and benefits. Most advisers start employed and transition to self-employed after building a client base of £5–10 million+ assets under advice.

How much do financial advisors in London earn compared to the UK average?

London and South East financial advisors typically earn 25–40% more than the UK average. A senior IFA earning £70,000–£80,000 nationally might earn £90,000–£110,000 in London. Private wealth management roles in the City can pay £150,000–£300,000+ including bonuses. However, the higher cost of living in London significantly offsets the salary premium.

What is a paraplanner and how much do they earn?

A paraplanner provides technical support to financial advisers, researching investments, preparing suitability reports and creating advice documents. They typically hold Level 4 qualifications. UK paraplanner salaries range from £22,000 for junior roles to £45,000–£55,000 for senior or technical paraplanners in London. Many use paraplanning as a structured route to becoming a qualified adviser.

How long does it take to become a qualified financial adviser in the UK?

Most people become a qualified financial adviser within 1–3 years of starting in the industry. The Level 4 Diploma typically takes 12–18 months of study alongside work. Many firms offer structured training programmes where new entrants work as paraplanners while studying for their qualifications. Once qualified, you must register with the FCA (via your employer's FCA registration or directly) before advising clients.

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Mustafa Bilgic — Financial Content Specialist
Mustafa researches and writes UK financial careers and salary guides. Salary data is sourced from CII, Indeed, Glassdoor, Reed and official ONS earnings surveys for 2025/26.