A new retirement saving service with a low all-in fee has been launched by Vanguard on its UK Personal Investor platform.
The Vanguard Personal Financial Planning service will provide tailored retirement saving advice and will have an all-in cost of 0.79 per cent, which includes the advice fee and ongoing fund charges, as well as transaction and platform costs.
Based on the retirement goals of the investor, Vanguard will recommend a tailored investment portfolio of its broadly diversified equity and fixed income funds. This will be managed on the investor’s behalf, tapering the level of risk as they approach retirement.
Investors require a minimum of £50,000 invested on Vanguard UK Personal Investor to be eligible for this service.
Sean Hagerty, head of Vanguard, Europe, said: “Vanguard Personal Financial Planning gives value to investors by providing high-quality, low-cost, retirement saving advice, through a service that investors can access at their convenience.
“For some investors, the cost of advice is a barrier. With people living longer and working longer, these costs have the potential to make a considerable dent in their hard-earned retirement savings.”
The all-in fee of 0.79 per cent comprises an advice fee (0.50 per cent) that includes VAT where applicable, ongoing fund charges (0.12 per cent), transaction costs (0.02 per cent), and platform fee (0.15 per cent, capped at a maximum of £375 a year). There are no entry or exit charges.
Commenting on the launch, Boring Money chief executive Holly Mackay said: “This launch is genuinely disruptive, in a positive sense.
“More of our readers are questioning the traditional model of paying 2 per cent or more on an ongoing basis for a package of advice and investments. At less than half the cost, this service seriously challenges the status quo and is a cat amongst what can be some pretty chubby pigeons.”