Investment giant Vanguard has launched its financial planning arm to offer eligible UK investors an advice offering to assess their retirement needs.
The Vanguard Personal Financial Planning service will provide clients preparing for retirement with a financial plan tailored to their chosen retirement date, desired income and their attitude to risk, and will be based on their financial situation.
The service will be at an all-in cost of just 0.79%. This comprises an advice fee (0.50%) that includes VAT where applicable, ongoing fund charges (0.12%), transaction costs (0.02%), and platform fee (0.15%, capped at a maximum of £375 a year).
There are no entry or exit charges.
The financial planning team is led by James Norton, head of financial planners of Vanguard Europe.
Eligibility
Investors require a minimum of £50,000 ($69,369, €57,680) invested on Vanguard UK Personal Investor to be eligible for Vanguard Personal Financial Planning.
The services for investors differ depending on their wealth:
- Clients with £50,000 to invest towards retirement receive a digital financial planning experience with a personal financial plan, implemented and managed by Vanguard and reviewed annually;
- Clients with over £100,000 receive, in addition, access to a team of financial planners, who are on hand to provide telephone or video-based financial planning support. They will receive an annual review from a financial planner as a matter of course, as well as being able to arrange a review when they experience a change in circumstances; and
- Clients 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.
High fees
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.
“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.”
