How Much Does a Financial Adviser Cost in NZ? Fees, Commissions and What You Actually Pay

Hourly fees, fixed plan fees, a percentage of your assets, or insurance commission, here is what financial advice really costs in New Zealand, who ultimately pays in each case, and how to tell if it is worth it.

TL;DR: Some New Zealand advisers charge you directly, around $200 to $400 an hour or $1,500 to $5,000 for a full financial plan ⁶. Many charge nothing upfront and are instead paid by the product provider. On life insurance that commission can reach up to 200% of your first year's premium ¹. Either way, the cost is real, so the question is who pays it and whether the advice earns its keep.

This article is general information only and is not personalised financial advice. It does not take into account your particular financial situation, goals or needs. Before acting, consider whether it's right for you and seek advice tailored to your circumstances.

The price of financial advice in New Zealand confuses a lot of people, and for a fair reason. Some advisers send you an invoice. Many do not, because they are paid by the insurer or fund manager once you take out a product. Both are real costs. One just shows up on a statement and the other comes out of your premium or your returns.

This guide walks through the main ways advisers charge, with real NZ figures, then helps you work out whether paying for advice is worth it for your situation. Figures are general market ranges, not a quote, and your own costs will differ.

How much does financial advice actually cost in New Zealand?

There is no single price, because advisers use different charging models for different work. As a rough map of the market:

• Hourly advice typically runs around $200 to $400 an hour, often quoted excluding GST (for example $250 to $300 plus GST) ⁶.
• A comprehensive financial plan commonly costs around $1,500 to $5,000 as a one-off ⁶.
• Investment or KiwiSaver advice charged as a percentage of your funds is commonly about 0.25% to 1%+ a year. On a $100,000 portfolio that is roughly $250 to $1,000 a year ⁷.
• Insurance advice is usually paid by the insurer through commission, so there is often no direct charge to you, but the commission can be large ¹.

Those are market ranges drawn from NZ adviser guides and disclosure documents, not a fixed schedule. What you pay depends on the adviser, the complexity of your situation, and the products involved. The more important question is not the headline number but who ultimately pays it.

What are the main ways advisers charge?

Most charging in New Zealand falls into four buckets. The figure below sets them side by side so you can see who actually carries the cost in each case.

Table: how NZ financial advisers get paid, and roughly what each model costs you. (Source: Smiths Financial, informed by the FMA disclosure framework ⁸; figures MoneyHub ⁶⁷ and FMA ¹².)

A few things are worth drawing out. With hourly and fixed fees, the cost is visible and you write the cheque. With a percentage of assets, the cost is still yours but it is deducted quietly from your balance rather than invoiced, so it is easy to lose sight of. With commission, you usually pay the adviser nothing directly, which is why "free" advice is the common experience in New Zealand, but the money is real and comes out of the premium pool you contribute to.

Many advisers use more than one of these models, depending on the work. For a closer look at the trade-offs, see our guide on fee-only vs commission financial advisers in NZ.

How much do insurance advisers earn in commission on a policy?

This is where the numbers get large, and where the figures most people have never seen actually sit.

On a life or risk policy, the FMA states that an adviser's upfront commission can be as high as 200% of the annual (first-year) premium, including bonus commissions ¹. So if a policy carries a $2,000 annual premium, a 200% upfront commission is a $2,000 × 2 = $4,000 payment to the adviser in the first year. In practice, adviser disclosure documents in New Zealand show first-year commission on life and disability cover commonly ranging from around 120% up to 230% of the first year's premium, depending on the insurer and policy ³.

After the first year, the adviser usually receives an ongoing servicing (or "trail") commission each year the policy stays in force. The FMA puts this at 5% to 25% of the premium per year, depending on how much upfront commission was taken ². Disclosure documents commonly show renewal commission nearer 5% to 10% of premium a year ³. That ongoing payment is meant to fund the work of looking after you, reviewing the cover and helping at claim time.

New Zealand has no statutory cap on life insurance commission, which is different from some other countries. Alongside cash commission, the FMA also notes advisers can receive "soft" commissions such as tickets to sporting events and gifts, which it flags as a driver of unnecessary policy switching ("churn") in its conduct work ⁵.

None of this is hidden from you by law. Under the regulated advice regime, advisers must disclose commissions, fees and other incentives, and any conflicts of interest, so you can see how the adviser is paid before you act ⁸. The point of knowing the size of the commission is not that commission is bad, it is that a larger payment for switching you to a new policy is something a good adviser manages openly. For how that plays out when comparing insurers, see how an adviser compares insurers in NZ.

How much does KiwiSaver and investment advice typically cost?

KiwiSaver and managed-fund advice is usually charged as a percentage of the funds you have invested, paid each year. NZ advisers commonly receive about 0.25% to 1%+ a year for this work ⁷. On a $100,000 portfolio that is roughly $250 to $1,000 a year, depending on the arrangement ⁷.

The catch with a percentage fee is that it is deducted from your investment rather than invoiced, so it is easy to underestimate. Here is the same $100,000 balance at three fee levels, ignoring growth, to show the annual drag.

Table: illustrative annual advice cost on a $100,000 KiwiSaver or investment balance, at three percentage-of-assets levels ⁷.

This is an illustration based on stated assumptions, not a prediction, and actual results will differ. It also covers only the advice slice; your KiwiSaver fund has its own management fee on top, which varies a lot between providers such as Simplicity, Kernel, Booster, Milford, Generate and Fisher Funds. The fee is not automatically money wasted. A higher cost can be worth it for genuine help choosing the right fund, staying invested through a downturn, and not missing contributions. The cost of doing nothing has its own price, which we cover in the cost of not getting financial advice in NZ.

KiwiSaver is a long-term savings scheme. Government contributions, contribution rates, withdrawal rules and tax (PIR) settings are set by the Government and can change. Check current rules at ird.govt.nz, kiwisaver.govt.nz and sorted.org.nz, and the relevant scheme's Product Disclosure Statement.

Is 'free' advice really free, and where does the money come from?

When an adviser does not charge you, the work is still being paid for. The money comes from the product provider through commission, generally funded out of the premiums or fees you pay over time ¹⁸.

So "free" is accurate in the narrow sense that no invoice lands on your desk. It is not free in the sense that no money changes hands. There is usually no direct charge to you because the adviser is typically paid a commission by the provider. That is a normal and legal model, and for insurance in particular it is the default experience for most New Zealanders.

What matters is transparency. Because the provider pays the adviser, the adviser has a financial interest in you taking out a product, and a larger one with some providers than others. The regulated regime addresses this by requiring advisers to disclose commissions and conflicts at the relevant stages of the advice process ⁸. If an adviser will not tell you plainly how they are paid, that reluctance is itself useful information.

How do clawbacks affect what advice costs you?

A clawback is what happens to that big upfront commission if a policy is cancelled early. The FMA explains that within a set clawback period, usually two years, if a consumer cancels a policy the adviser must repay a portion of the upfront commission to the insurer ⁴.

This affects you in two ways. First, it is a reason a good adviser may be cautious about moving you onto a new policy, because switching can trigger a clawback and reset cover terms, stand-downs and underwriting. Second, and less comfortably, the FMA notes that some advisers pass this charge on to the customer ⁴. If that applies, it should be set out in the adviser's terms before you sign. It is fair to ask directly what happens to their pay, and to yours, if you cancel within the first two years.

Whether a claim is paid depends on the terms, conditions, exclusions, stand-down periods and underwriting of the specific policy, and on your disclosure. This is a summary only, always read the policy wording or product disclosure statement.

Is paying for financial advice worth it for your situation?

There is no universal answer, because it depends on what you need and how complex your situation is. Some general patterns are worth weighing up.

Advice tends to be worth more when the stakes or the complexity are higher, for example people with a mortgage and dependants weighing how much life or income protection cover to hold, business owners, those approaching retirement, or anyone unsure whether their KiwiSaver fund still fits. In those cases the cost of getting it wrong, through the wrong fund, a gap in cover, or a policy that does not pay at claim time, can dwarf the fee.

Advice tends to be worth less, relative to its cost, for very simple, low-balance, do-it-yourself situations where free public tools already do the job. Sorted's calculators at sorted.org.nz, and the official information at ird.govt.nz and kiwisaver.govt.nz, are genuinely useful and cost nothing.

The honest framing is a comparison: the cost of the advice against the cost of the decisions you would otherwise make alone. Neither is zero. A good adviser should be able to explain, in writing and in plain numbers, what their advice will cost and what you are getting for it. Personalised advice works through what actually fits your circumstances, which is different for everyone.

Returns are not guaranteed. The value of investments can go down as well as up and you may get back less than you invested. Past performance is not a reliable indicator of future performance.

What should you ask before agreeing to any fee or commission arrangement?

Ask these in the first meeting, before any product is discussed. A good adviser will answer all of them without flinching.

1. How are you paid for advising me, by me or by the provider, and how much? Ask for the dollar figure or range, not "it varies".

2. If it is a fee, is it hourly, a fixed plan fee, or a percentage of my assets? And is it plus GST?

3. If it is commission, what is the upfront and ongoing rate, and does it differ between providers? Different rates create a quiet pull toward the higher payer ¹².

4. What happens to your pay, and to mine, if I cancel within two years? This surfaces clawback, and whether any charge is passed on to you ⁴.

5. Will you put all of this in writing before I sign anything? Disclosure of commissions, fees and conflicts is required ⁸.

6. Are there any soft commissions or other incentives involved? For example gifts or event tickets ⁵.

Frequently asked questions

How much does a financial adviser cost in NZ? It depends on the model. Hourly advice is commonly around $200 to $400 an hour and a full financial plan around $1,500 to $5,000 ⁶. Investment or KiwiSaver advice charged as a percentage of assets is commonly 0.25% to 1%+ a year ⁷. Insurance advice is usually paid by the insurer through commission, so there is often no direct charge to you ¹.

How much commission does a NZ adviser earn on life insurance? The FMA states upfront commission can be as high as 200% of the first year's premium, including bonuses ¹, with disclosure documents commonly showing around 120% to 230% ³. After year one, ongoing servicing commission is typically 5% to 25% of the premium a year ².

Is 'free' financial advice really free? There is usually no direct charge to you, because the adviser is typically paid a commission by the provider ¹⁸. The money is real and comes from the premiums or fees you pay over time, so it is free of an invoice rather than free of cost. Advisers must disclose how they are paid ⁸.

What is a commission clawback? If you cancel a policy within a set period, usually two years, the adviser must repay part of the upfront commission to the insurer ⁴. Some advisers pass this charge on to the customer, so it is worth asking before you sign ⁴.

Is paying for financial advice worth it? It depends on your situation. Advice tends to be worth more where the stakes or complexity are higher, such as protecting a household's income or choosing the right KiwiSaver fund near retirement. For very simple situations, free public tools at sorted.org.nz, ird.govt.nz and kiwisaver.govt.nz may be enough. The fair test is the cost of advice against the cost of deciding alone.

Smiths Financial is a trading name of Craig Smith Business Services Ltd (FSP712931), which holds a Class 2 financial advice provider licence issued by the Financial Markets Authority to provide financial advice on personal risk insurance, health insurance, general insurance, KiwiSaver and managed funds. Our advisers, Henry Smith (Financial Adviser) and Craig Smith (Principal Adviser), are bound by the Code of Professional Conduct for Financial Advice Services and the duty to give priority to clients' interests. Craig Smith Business Services Ltd is a member of the Financial Dispute Resolution Service (FDRS), a free and independent dispute resolution scheme. We're generally paid by commission from the insurer or provider when you take out a policy or product through us; this doesn't change the premium or price you pay. Some arrangements may involve a fee, which we agree with you first. We manage any conflicts of interest in line with our duty to prioritise your interests, full details in our Disclosure. Written by Henry Smith, Financial Adviser; reviewed by Craig Smith, Principal Adviser. Last reviewed 5 November 2025.