Vanguard set to launch the UK’s cheapest-ever pension fund
Vanguard, the giant US asset management company, is set to launch a self-invested personal pension (Sipp) with an annual fee of just 0.15%
Good news for pension savers worried about charges – as all pension savers should be. Vanguard, the giant US asset management company, is set to launch the UK’s cheapest-ever pension fund.
Vanguard has been promising a new pension product for more than two years. But the long wait appears to have been worth it. The group’s self-invested personal pension (Sipp) will carry an annual fee of just 0.15%, with charges capped at £375. That’s less than half the cost of similar Sipps elsewhere.
Savers opening a Vanguard pension will have to pay additional charges on the underlying funds in which they invest, as well as transaction costs when buying and selling investments. But that’s true of other Sipps too and independent analysis suggests that for the typical saver, Vanguard’s new product will be the cheapest deal going.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Pension advisers expect the new plan to be popular, which should prompt rival providers to review their own charges. In which case, fees could drop across the board in 2020 – and if you already have a Sipp, it’s worth reviewing the market to see if you’re getting the best deal.
Get the latest financial news, insights and expert analysis from our award-winning MoneyWeek team, to help you understand what really matters when it comes to your finances.
MoneyWeek is written by a team of experienced and award-winning journalists, plus expert columnists. As well as daily digital news and features, MoneyWeek also publishes a weekly magazine, covering investing and personal finance. From share tips, pensions, gold to practical investment tips - we provide a round-up to help you make money and keep it.
-
Tesla seeks approval to supply electricity to UK homes – could it disrupt the energy market?
Tesla has applied for a license to supply UK households with electricity, but taking on the biggest providers could prove challenging
-
Most Brits unaware onshore bonds can help beat inheritance tax – here’s how
A little-known perk of certain types of bonds can let your loved ones off the hook when it comes to inheritance tax – but two-thirds of people have never heard of them
-
Interactive Investor launches £5.99 a month Sipp - is it any good?
The flat-fee platform says it is leading a pension pricing shake-up. But how does it compare to other pensions on the market? We have all the details.
-
How to earn a higher rate on your spare cash in ISAs and SIPPs
Tips Money-market funds can help investors get more interest on balances in Isas and Sipps
-
A new low-cost Sipp from Interactive Investor
Advice Savers with accounts of all sizes could benefit from lower fixed fees in this new low-cost Sipp from Interactive Investor.
-
Pensions: Vanguard sparks a Sipp price war
Features Fund giant Vanguard is poised to shake up the Sipp market with the cheapest offering on record.