The two funds – the Vanguard Target Retirement 2060 and the Vanguard Target Retirement 2065 funds – are designed for those retiring in 2060 or 2065, so those born from around 1990 onwards.

The funds invest in Vanguard’s equity and bond index funds and exchange traded funds. The funds will automatically adapt the asset mix for different stages of the investor’s journey to and through retirement. For example, it may move into less risky types of investment as retirement approaches.

The funds can be included in tax-efficient pension wrappers, including Self-Invested Personal Pensions (SIPPS) and Individual Savings Accounts (ISA) to save for retirement. They have an ongoing charge of 0.24% and can be accessed through Vanguard’s UK Personal Investor Service. At the moment this service only offers ISAs, but the group plans to launch a SIPP in 2018. Investors may also be able to access the funds through a platform or adviser, but may pay additional fees.

James Norton, senior investment planner at Vanguard, said: “The UK public is facing an increasingly complicated route to retirement. Investors have more flexibility and choice, but they often face difficult decisions on how to save and invest in a rapidly changing pensions and investment environment. Vanguard’s Target Retirement Funds are designed to help address these challenges.”

YourMoney view

This type of fund is increasingly popular in the US. Vanguard alone has $597bn in US-based target-date assets. The premise is simple – this is a lock-and-leave solution, so investors can set up a direct debit and never think about it again. It will adapt to their ‘age and stage’.

This, in itself, is appealing. Vanguard is a huge global group, with a well-deserved reputation for offering good, low-cost solutions. You’ll never have the top-performing fund, and there’s nothing exciting about it at all, but as a way into pension savings, this is a good option.