Vanguard are shaking up the world of pensions by providing a low-cost pension advisory service in a first of its kind offering.
Vanguard are one of many investment platforms that have given retirement savers the ability to put their pension in their pocket with their innovative app that lets you manage your pension, as well as all your investments on the move.
Now they are providing retirement savers with a low-cost way to access financial advice to help ensure adequate savings to provide for their retirement. Currently, less than 10% of the UK adult population have received any kind of financial advice, causing concern that a large number of the population are not on track for an adequate pension. This would leave them relying on the meagre state pension, a far cry from providing an income for even the most frugal of pensioners.
Vanguard’s Self Invested Personal Pension (SIPP) is charged at just 0.15%, making them a highly competitive provider in the online space. However, investors with a minimum of £50,000 can now access highly personalised and targeted financial advice to help guide them with their retirement savings in line with their unique circumstances for an annual cost of 0.79% which also covers platform fees, fund fees, and transaction costs.
This is excellent news for pensions as a service of this nature would usually cost around double this amount. It is hoped that Vanguard’s offering will force competitors to review their own pricing structure in a bid to compete with Vanguard in the pensions market place.
Vanguard are hoping their new ‘personal financial planning’ service will appeal to savers who are reaching retirement age and may need guidance on how to access their pension, as well as those who require reassurance that they are on track for retirement. However, the service does not include inheritance tax planning, property, and other complex finances for which investors are encouraged to consult with an independent financial adviser.