Vanguard is launching a low-cost advice service targeting UK investors approaching retirement.
Investors using Vanguard Personal Financial Planning will receive personalised retirement saving advice, and a tailor-made investment portfolio of Vanguard equity and fixed income funds for an all-in-fee of 0.79 per cent.
This fee includes advice cost, transaction costs, fund charges and platform fees. There are no exit or entry fees, although investors will need a minimum of £50,000 to access this service.
Vanguard is offering a digital advice service, with investors receiving a personal financial plan, that takes into account chosen retirement date, desired retirement income, attitude to risk and current financial situation. This plan is implemented and managed by Vanguard and reviewed annually.
The portfolio is managed by Vanguard, re-blanced where appropriate and de-risked as investors approach retirement.
Investors with over £100,000 in their portfolio also have access to a team of financial planners who can offer telephone or video-based financial planning support. Investors will receive an annual review and be able to arrange additional meetings if their circumstances change.
Investors with over £750,000 are supported by a dedicated financial planner, available to provide face-to-face support via video or in-person at Vanguard’s offices in London.
The financial planning team is led by James Norton, head of Financial Planners, Vanguard, Europe. They are supported by a UK wealth planning research team.
Sean Hagerty, head of Vanguard, Europe says: “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 per cent 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 per cent for advice, platform, and fund management charges. It’s not uncommon to see fees north of 2 per cent. With people living longer and working longer, these costs have the potential to make a considerable dent in their hard-earned retirement savings.”
He adds that this new services will offer high-quality, easy to access advice for investors.
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