Different kinds of financial advice to suit different needs

Please see our glossary for information on the financial terms used in this article. 

The world of financial advice has changed dramatically in recent years, driven by advances in technology and changing consumer expectations. Today, there’s growing recognition that financial advice isn’t one-size-fits-all – different people need different types of support, depending on their goals, confidence and circumstances.

Whether you’re planning for retirement, saving to buy a house or simply want to make more confident decisions with your money, you now have more options than ever before for getting the help you need – and at a wider range of costs.

Here’s more information to help familiarise you with the main types of advice available.

Traditional advice

Traditional financial advice usually takes the form of a financial adviser talking you through your needs and supporting you at every stage of the advice process. So, for example, they’ll carry out a fact find alongside you, whether that’s over the phone, by video call or face-to-face, and talk through the costs and charges of advice. They’ll discuss your attitude to risk, get to know your personal circumstances and long-term goals.

Financial advisers look at your financial situation as a whole, rather than one or two parts of it. They’ll then work with you to create a tailored plan, make sure everything is set up and usually be on hand to discuss your plans, if and when they change in the future. Because of the tailored nature of traditional financial advice and an often ongoing relationship, this service usually costs more than other kinds of advice.

Robo advice

Robo advice is a low-cost digital service that uses technology to automate investing. Typically accessed via an app or website, these platforms ask basic questions – such as how much you want to invest, for how long and your risk tolerance – then suggest an investment strategy based on your responses. With little to no human interaction, robo advice is generally best suited to straightforward investment needs.

Despite its convenience, many people still prefer and would only trust a human adviser to manage their investments rather than relying solely on technology¹. This preference is likely because robo advice is unable to replicate the reassurance and emotional connection that comes with speaking to an adviser. It also fails to fully consider individual circumstances or long-term planning, making it a less suitable option for complex financial needs such as retirement or estate planning.

However, as artificial intelligence (AI) becomes increasingly integrated into adviser workflows², we could start to see robo advice evolve into a more personalised, efficient and scalable solution capable of supporting more complex financial needs.

Hybrid advice

Hybrid advice usually combines automated digital tools with oversight by a financial adviser. Hence the term ‘hybrid’ as it’s mixing two different types of activity – human and digital. With this type of advice, it’s likely that you’d be asked to begin by filling in a questionnaire online detailing your needs, how much risk you’re willing to take and your personal investment goals. This information will then be reviewed by a financial adviser who’ll make recommendations based on your answers.

Essentially, you still have a financial adviser to support you and make recommendations, but a lot of the more admin-based activity is done online, which can save both you and the adviser time.

Hybrid advice is often used for investors with more complicated needs like planning for their retirement, receiving advice on their pensions, or creating investment portfolios.

Which type of advice might be right for me?

With the right type of advice, you can better plan for your financial future. But before you decide on which way or ways to access financial advice, here are a few key questions to think about:

• What are your financial needs? For example, are you looking to set up an ISA to save some money or are you retiring shortly and looking for the best way to access your pension? Whether your needs are relatively simple or complicated could help you decide the best type of advice for you.
• How important is cost? Robo advice is often the cheapest option, because you won’t be provided with tailored recommendations based on your circumstances. But on the flip side traditional advice is likely to be more costly, due to the human interaction and the fact your financial adviser will recommend specific plans to achieve your goals. The cost of hybrid advice is usually somewhere in between.
• Do you feel confident and comfortable looking at financial products and services? If you feel comfortable with financial markets and investing, it may be that a digital solution would suit you. However, if you’re unsure where to start traditional advice might be more suited to your needs.
• Are you looking for ongoing help? If you’re looking for regular financial advice it may be worth considering a more traditional route or potentially a hybrid advice, as these often cater for annual financial reviews to see if you’re still on track for your goals, and discuss whether your needs have changed.
• Do you have any recommendations from friends or family? Getting recommendations from people you trust and talking to them about their financial planning, and if they’ve used any of these types of advice might help you with your decisions. While your needs are unlikely to be exactly the same as someone else’s, getting recommendations is often a good place to start.

These are just some key areas to think about, and this is not advice to a particular course of action.

Accessing advice

If you don’t already have an adviser but would like to explore traditional advice, you can find a financial adviser that's right for you on our Get financial advice page. If you’d like to see what robo and hybrid services are available there are a range of comparison sites available that will show you different providers and what products and services they offer. 

¹ Unbiased, “7 in 10 Brits prefer financial advice from a person rather than AI”, (unbiased.co.uk), September 2025
² FT Adviser, “AI in advice: What’s next?”, (ftadviser.com), October 2025

The value of investments will fluctuate, which will cause prices to fall as well as rise and you may not get back the original amount you invested. We are unable to give financial advice. If you are unsure about the suitability of your investment, speak to your financial adviser. The views expressed in this article should not be taken as a recommendation, advice or forecast.