How Do Financial Planners Get Paid? Fees, Commissions, and What’s Best for You

June 01, 2026 by MyDailyLink Staff
How Do Financial Planners Get Paid? Fees, Commissions, and What’s Best for You

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How Do Financial Planners Get Paid?

When you hire a financial planner, you’re essentially paying for two things: expert advice and peace of mind. But how that advice is billed can differ. Here are the main models you’ll come across:

1. Fee-Based Financial Planners

Fee-based planners charge clients directly — no commissions attached. Their income comes from consultation fees, ongoing management fees, or flat-rate project fees.

  • Hourly or consultation fees: You pay for time and advice, just like a lawyer or accountant.
  • Retainer or ongoing fees: Ideal for long-term planning and investment management.
  • Flat fees: A set cost for specific services, like creating a retirement plan or estate strategy.

This model ensures objectivity — your planner’s recommendations are focused entirely on your goals, not product incentives.

2. Commission-Based Financial Planners

Commission-based planners earn a percentage from the financial products they recommend — for example, when you take out a life insurance policy or invest in a retirement annuity.

While this model can work for clients who prefer not to pay upfront, it’s important to ask for full disclosure on commissions. Transparency helps you understand whether the advice is product-driven or need-driven.

3. Hybrid (Fee + Commission) Models

Some planners use a hybrid approach, charging a combination of service fees and earning commissions on specific products. This can be a balanced option — provided the planner is transparent about both sides of their income.

How Much Does a Financial Planner Charge in South Africa?

Costs can vary depending on the complexity of your financial situation and the planner’s qualifications.
Here’s a general guide:

  • Initial consultation: Often free or around R500–R1,500.
  • Comprehensive financial plan: Typically R2,000–R10,000 once-off.
  • Ongoing advice or portfolio management: 0.5%–1% annually of assets under management.
  • Commission-based products: The planner may earn a percentage from insurers or investment companies.

Independent financial planners like DWD Financial Planners operate with transparency — clearly outlining costs upfront and ensuring there are no hidden fees. The goal? To build trust and give clients confidence in their financial decisions.

Why Independence Matters

At DWD Financial Planners, independence means freedom — freedom from product bias, limited partnerships, and hidden commissions. Our advice is guided by your financial goals, not by how much a product pays out.

That’s why we take time to understand your needs, provide tailored strategies, and explain every cost clearly. With DWD, you’ll always know what you’re paying for — expert, unbiased financial guidance built around you.

Final Thoughts

Understanding how financial planners get paid helps you make smarter decisions about your financial future. Whether you prefer a fee-based structure for transparency or a commission model for flexibility, the key is to choose a planner who communicates openly and aligns with your long-term goals.

At DWD Financial Planners, we believe that trust begins with clarity — and ends with confidence.

Plan Today.

Prosper Tomorrow.
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Why Financial Planning Is Important for Every South African Family

Financial Calculators

Find out if you are on track for retirement — and how much more you need to save. Powered by 8% p.a. growth assumptions. Estimates only; speak to DWD for a personalised projection.

Calculate exactly how much life cover your family needs if something happens to you — including income replacement, debt clearance, and education funding.

Estimate how much SARS tax you will pay on your pension or provident lump sum using the official 2024/25 retirement fund tax tables. For amounts above R3 million, contact DWD directly.

Answer 10 quick yes/no questions to identify gaps in your estate plan — and get personalised recommendations from DWD's estate planning specialists.

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Include RA, pension/provident fund, and other long-term investments.
Include employer and employee contributions to pension, provident, and RA.

Projected Savings at Retirement

R 0
Readiness Analysis Fair
Years to retirement 25 years
Retirement income target R 0
Monthly income in retirement R 0
Funding gap / surplus —
Additional monthly needed —

Get a personalised retirement plan from DWD's independent advisors — no obligation, no cost.

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2
Include a spouse/partner, children, and any other people dependent on your income.
Include home loan, vehicle finance, credit cards, and personal loans.
Include employer group life, personal policies, and funeral cover.

Total Life Cover Recommended

R 0
Cover Breakdown Underinsured
Income replacement (10× annual) R 0
Debt clearance R 0
Education fund for dependents R 0
Estate & executor costs (est.) R 50,000
Less: existing cover R 0
Cover gap / surplus —
Est. monthly premium range —
Recommended product type —

Get an exact life cover quote from DWD — we compare multiple providers to find you the best value.

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R 500,000
Slide to select your lump sum amount up to R3 million. Contact DWD for larger amounts.
Retirement and retrenchment attract a more favourable tax rate with a higher tax-free threshold.
SARS aggregates all lifetime retirement fund withdrawals when applying the tax tables. This reduces the tax-free portion available.
SARS 2024/25 Tax Tables Applied This estimator uses the official SARS retirement fund lump sum tax tables. Tax on retirement/retrenchment: R0–R550,000 @ 0%, R550,001–R770,000 @ 18%, R770,001–R1,155,000 @ 27%, above R1,155,000 @ 36%. Speak to DWD for a precise calculation based on your full retirement history.

Estimated Net Payout (after tax)

R 500,000
Tax Breakdown 0% rate
Gross lump sum R 500,000
Tax-free portion R 500,000
SARS tax payable R 0
Net payout R 500,000
Effective tax rate 0.0%
Marginal tax rate (top bracket) 0%

DWD can help you structure your retirement lump sum to minimise SARS tax — including preservation fund strategies.

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Your progress 0 of 10 answered

1. Do you have a valid, signed will that has been updated in the last 5 years?

2. Are your beneficiary nominations up to date on all policies and retirement funds?

3. Have you nominated an executor in your will to administer your estate?

4. Do you have life cover sufficient to cover estate duties, executor fees, and outstanding debts?

5. Have you considered the estate duty implications on your assets? (Estate duty applies above R3.5 million at 20%.)

6. If you have minor children, have you nominated a legal guardian in your will?

7. Have you considered a testamentary trust to protect assets left to minor or vulnerable beneficiaries?

8. Do you have a Tax-Free Savings Account (TFSA) or endowment policy as part of your wealth strategy?

9. Is a trusted family member aware of the location of your will, policies, and important financial documents?

10. Have you reviewed your estate plan with a qualified financial planner in the last 3 years?

— / 10
Answer to see your score

Answer all 10 questions to get your personalised estate planning readiness rating and a list of gaps DWD can help you address.

Gaps identified — DWD recommends:

Complete all 10 questions to unlock your free estate planning assessment.

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DWD Financial Planners Areas Served

Lethabong, South Africa , Sandton, South Africa , Alberton, South Africa , Bedfordview, South Africa , Germiston, South Africa , Roodepoort, South Africa , Johannesburg South, South Africa , Centurion, South Africa , Randburg, South Africa , Krugersdorp, South Africa , Midrand, South Africa , Benoni, South Africa , Kempton Park, South Africa , Soweto, South Africa , Phoenix, South Africa , Pretoria, South Africa , Bloemfontein, South Africa , Cape Town, South Africa , Pietermaritzburg, South Africa , Gillitts, South Africa , Berea, South Africa , Umhlanga, South Africa , East London, South Africa , Port Elizabeth, South Africa , Polokwane, South Africa

Frequently Asked Questions

How do financial planners get paid in South Africa?
Financial planners are paid through fees, commissions, or both. Fee-based planners charge clients directly for advice or management, while commission-based planners earn from selling financial products.
What is the average cost of a financial planner in South Africa?
A comprehensive financial plan can cost between R2,000 and R10,000. Ongoing management fees typically range from 0.5% to 1% of assets per year.
Is it better to choose a fee-based or commission-based financial planner?
Fee-based planners are often preferred for their transparency and objectivity, as they don’t earn from product sales. Commission-based planners can be suitable if you prefer no upfront costs.
Are independent financial planners more trustworthy?
Yes, independent planners like DWD Financial Planners aren’t tied to specific financial institutions, allowing them to recommend products purely based on your best interests.
Does DWD Financial Planners charge hidden fees?
No. DWD Financial Planners believes in full transparency. All fees and commissions are clearly explained upfront, ensuring you always know what you’re paying for.