You are here: Home - Retirement - Retirement planning - News -

Vanguard launches ‘buy-and-forget’ retirement options

0
Written by:
05/12/2017
Vanguard has launched two new low-cost retirement funds aimed at those starting out in retirement saving.

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.

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

Insurance Experts: Are you fully insured? Click here to get a quote.

For a free quote or to speak with an insurance expert call 0800 1218744

Just how safe are contactless cards?

Contactless cards have soared in popularity but security is still a major concern for many consumers. We answe...

Petrol stations overcharging drivers by at least £2.50 a tank

UK drivers are being “fleeced” at the pumps with petrol stations overcharging by at least £2.50 per fill up, a...

Govt will have to justify planned increase to state pension age

The government will have to justify proposed changes to raise the state pension age, which could see millennia...

Ryanair jetting towards US flights for £10

Ryanair is on course to achieve its long-held ambition of offering transatlantic flights to the US – and the...

Investing in car parks: a good vehicle for income seekers?

As the search for income continues, many investors are turning to alternatives, with car parks becoming increa...

Tesco expected to post significant write-offs

Tesco is predicted to unveil the biggest loss in its 100-year history, according to analysts.

Results round-up: Companies to watch this week

Mulberry and more will face the music this week.

Product launches of the week

Select Property Group, Schroders, Leeds Building Society and more have exciting news this week.

YourMoney.com Awards 2018

Now in their 21st year, our awards recognise the companies offering the best products and services to consumers

Money Tips of the Week

Read previous post:
buying a car
Car finance firm investigated by the regulator

The financial regulator has launched an investigation into Moneybarn - part of the troubled Provident Financial Group.

Close