Vanguard, one of the world’s largest fund managers, is launching the UK’s cheapest ever pension in 2020 – but how does it work and could it help you save more for retirement? With an account fee of just 0.15%, capped at £375 a year, Vanguard Personal Pension brings a new level of competition to the pension market. Vanguard’s self-invested personal pension (Sipp) is designed to help the UK’s five million self-employed workers as well as anyone who wants to consolidate several pension pots into one place.
The Vanguard Personal Pension is a Sipp open to savers aged 18 or over who live, and pay tax in the UK, as well as having a UK bank account. The Sipp allows you to choose from 76 funds and ETFs and will be available from early 2020. Initially, Vanguard Personal Pension will only be open to investors that have not started to draw down from their pensions. Vanguard hopes to make the Sipp available to those savers during the 2020-21 tax year. You must open an account with a lump sum of £500 or make a £100 a month contribution under a regular savings plan.
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