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Guidance or advice: which one does your question need?

Guidance and advice sound like the same thing. The difference is who carries the can if the answer turns out to be wrong, and that is worth knowing before you ask anyone.

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The short answer

Guidance explains your options and leaves you responsible for the decision. Regulated advice makes a personal recommendation and makes the adviser accountable, with access to the Financial Ombudsman Service. Free guidance from MoneyHelper, Pension Wise and Citizens Advice answers more questions than most people expect.

FreeWhat guidance costs
YouWho is accountable after guidance
The adviserWho is accountable after advice
£30,000Transfer value above which advice is required
What is on this page
  1. The line between them
  2. Which one your question needs
  3. The free services worth knowing
  4. A sensible order

The line between them

Guidance Regulated advice
What you get Your options explained A recommendation for you
Who decides You You, on a recommendation
Who is accountable You The adviser
Complaint route Limited The Financial Ombudsman Service
Compensation if it fails None FSCS may apply
What it costs you Nothing A fee for investment and pension work. For protection, usually nothing, because the insurer pays the adviser a commission if a policy goes ahead

Both are useful. They answer different questions and carry very different consequences if the outcome is poor.

Which one your question needs

Guidance is enough forUnderstanding how a product works, checking a State Pension forecast, comparing standard savings accounts, budgeting and debt.
Advice is needed forDefined benefit transfers, turning a pension into income, investing a lump sum, protection where health affects the terms.
Advice is required by law forTransferring a defined benefit pension worth over £30,000.
Either can work forChoosing between an ISA and a pension, where guidance explains and advice recommends for your tax position.

The free services worth knowing

MoneyHelper

Government-backed

Run by the Money and Pensions Service. Covers pensions, benefits, debt, budgeting, mortgages and insurance, with free tools and calculators.

Pension Wise

Age 50 and over

A free appointment explaining your options for a defined contribution pension. Booked through MoneyHelper.

Citizens Advice

Local and national

Benefits, debt, consumer and housing problems. Free, and used to complicated situations.

Want this checked against your own situation?

Send us the figures and we will tell you what they mean. If it is not ours to advise on, we will say who should.

Ask us a question

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This goes to a separately authorised firm we have vetted. The introduction costs you nothing. If you go ahead, we may be paid a fee by that firm.

A sensible order

1

Write down the actual question

Not the product name. What are you trying to achieve or avoid.

2

Use free guidance first

It often answers it, and it costs nothing to try.

3

Work out what a wrong answer costs

If it is large and permanent, that is the case for paid advice.

4

Check whoever you approach

The FCA Register, and their permissions for that specific thing.

5

Ask what it will cost, in pounds

Before any work starts, in writing.

Where you stand

Guidance is enough for
  • Understanding how a product works
  • Checking a State Pension forecast
  • Budgeting, debt and benefit questions
  • Comparing standard insurance or savings
You need advice for
  • A defined benefit pension transfer
  • Turning a pension pot into an income
  • Investing money you cannot afford to lose
  • Anything large, permanent and hard to reverse

Check broadband before you make an offer

Broadband speeds can vary street by street, so check the exact address before you commit. Ofcom's free checker shows which broadband speeds and mobile coverage are available at any UK property.

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Questions people actually ask

What is the difference between financial guidance and advice?
Guidance explains your options and leaves you accountable for the decision. Regulated advice makes a personal recommendation and makes the adviser accountable, with access to the Financial Ombudsman Service if it goes wrong.
Is MoneyHelper advice?
No, it is guidance. It is free, government-backed and impartial, and it explains options rather than recommending one for you.
When do I legally need advice?
Transferring a defined benefit pension worth more than £30,000 requires advice from a firm holding the specific pension transfer permission.
Can guidance tell me what to do?
No. That is the defining limit. It can lay out every option and the consequences, but it will not pick one for your circumstances.
Is Pension Wise worth using?
Yes, and it is free from age 50 with a defined contribution pension. It gives you the options clearly, which makes any later paid conversation shorter and cheaper.
How do I check broadband speed at a property?
Use Ofcom's free broadband and mobile checker at checker.ofcom.org.uk. Enter the property's postcode and choose the address to see which broadband speeds and mobile coverage are available before you make an offer.

Where to go next

Financial advice explainedThe full picture.What advice costsBefore you decide.Questions to askTen of them.Check an adviserThe two-minute check.Pension drawdownWhere advice usually pays.Budgeting and debtWhere free help is the right answer.
Where these figures come from

Figures checked on 1 September 2026 and correct for the 2026/27 tax year. Rates change, so check the source before you act on a number.

Written by Ben Tomlin. Investment and pension advice goes to a separately authorised firm we have vetted. The introduction costs you nothing. If you go ahead, we may be paid a fee by that firm.

Last reviewed September 2026.

Not sure which yours is?

Describe the question in a sentence. We will tell you whether free guidance covers it or whether it needs an adviser.

Start a conversation

Prefer WhatsApp? Message us there. We are open Monday to Saturday, 9am to 8pm.

This goes to a separately authorised firm we have vetted. The introduction costs you nothing. If you go ahead, we may be paid a fee by that firm.

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