US investment giant Vanguard has launched its first Sipp in the UK market.
Vanguard is one of the largest global asset managers and has built its business on offering low cost passive investment solutions, that typically undercut fees charged by rivals.
Initially this new Sipp being sold directly to private investors, rather than being offered via a workplace solution. According to research by Platforum it will be the cheapest Sipp option available to private investors, when compared to the pensions offered via other major investment platforms.
The Vanguard Personal Pension will have a 0.15% fee, capped at a maximum of £375 across all accounts in an investors name, which will include its Isa and general investment account options.
Investors will have access to 77 fund options: including Vanguard’s LifeStrategy fund ranges and its Target Retirement funds, alongside ETF options. Investors can open an account with a lump sum of £500, and a minimum monthly contribution of £100.
Initially, this pension will only be open to accumulation stage investors.
Sean Hagerty, head of Vanguard, Europe says the pension has been designed to reduce “the cost and complexity of saving for retirement”.
He adds: “Many investors and retirees lose out on their own hard work due to high fees and charges. Fees can have a sizeable impact on investment returns, and consequently on the quality of life in retirement.”
Platforum head Jeremy Fawcett says: “Pension investing is a long-term activity and when fees are low, outcomes are significantly improved. The Vanguard Sipp is one of the lowest cost options in the market, especially for those at the beginning of their investing journey.”