Vanguard has launched Vanguard Personal Financial Planning on the Vanguard UK Personal Investor platform, which aims to bring value to investors through a personalised retirement saving advice service that is high-quality and easy to access, at an all-in cost of just 0.79 per cent.
Sean Hagerty, Head of Vanguard, Europe, says: “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 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.”
The Vanguard Personal Financial Planning service will provide investors preparing for retirement with a comprehensive financial plan tailored to their chosen retirement date, desired retirement income and their attitude to risk, and is based on their financial situation.
As part of this plan, Vanguard will recommend a tailored investment portfolio made up of a finely tuned mix of our low-cost and broadly diversified equity and fixed income funds. Vanguard will manage the portfolio on the investor’s behalf, rebalancing as appropriate, and reducing their level of risk as they approach retirement. This personalised financial plan will be reviewed and updated annually to keep it on track.
Vanguard Personal Financial Planning applies a simple and transparent charge with a single all-in cost of just 0.79 per cent. This comprises an advice fee (0.50 per cent) that includes VAT where applicable, ongoing fund charges (0.12 per cent), transaction costs (0.02 per cent), and platform fee (0.15 per cent, capped at a maximum of GBP375 a year). There are no entry or exit charges (see “Typical Advice Charges” table below).
Vanguard Personal Financial Planning offers tiered support service levels, with support increasing as investors’ portfolios grow and their financial needs evolve. Investors require a minimum of GBP50,000 invested on Vanguard UK Personal Investor to be eligible for Vanguard Personal Financial Planning.
Clients with GBP50,000 to invest towards retirement receive a digital financial planning experience with a personal financial plan, implemented and managed by Vanguard and reviewed annually. Clients have access to our service team for administrative support.
Clients with over GBP100,000 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.
Clients with over GBP750,000 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 (CFP Chartered FSCI), Head of Financial Planners, Vanguard, Europe. They are supported by a UK wealth planning research team, who produce Vanguard’s cutting-edge thinking on financial advice, investments, and retirement planning.
To be eligible for Vanguard Personal Financial Planning, investors must be aged 18 years or over and must be a UK resident for tax purposes. Investors must also have a minimum of GBP50,000 invested on the Vanguard UK Personal Investor platform, which they are prepared to allocate to investing for retirement.
At launch, this service is directed at providing financial planning for a single investor. Functionality for couples’ retirement planning will be added in due course, as will support for planning towards additional investment goals.
