Vanguard has launched a UK advice business charging an all-in fee of 0.79%, targeting investors saving for retirement with pots of £50,000 and over .
The service will be available to savers with that sum on the invested on Vanguard UK Personal Investor platform, who will then have access to the new Vanguard Personal Financial Planning platform, which will offer personalised retirement saving advice, supported by Vanguard’s financial planning team.
The all-in cost of 0.79% includes the advice fee plus ongoing fund charges, transactions costs and platform costs. There are no other charges (e.g., entry, exit, or otherwise). Investors require a minimum of £50,000 invested on Vanguard UK Personal Investor to be eligible for Vanguard Personal Financial Planning.
Sean Hagerty, Head of Vanguard, Europe, said the new service “gives value to investors by providing high-quality, low-cost, retirement saving advice, through a service that investors can access at their convenience.
“We strongly believe that many people will benefit from taking financial advice, particularly in preparation for retirement. However, research, including a recent FCA report, shows that over 90% of the UK’s adult population do not currently take advice.
“For some investors, the cost of advice is a barrier. The data indicates people can pay more than 1.5% for advice, platform, and fund management charges. It’s not uncommon to see fees north of 2%. With people living longer and working longer, these costs have the potential to make a considerable dent in their hard-earned retirement savings.”
