The SIPP can be opened with a minimum £100 a month or £500 lump sum and will give investors access to 76 funds and Exchange Traded Funds.

At launch, it will be available to investors building up their pensions (those not in drawdown yet) and from the 2020/21 tax year for those wishing to access their pensions.

The 0.15% (£375 a year) cap will also apply to other accounts on the Vanguard Personal Investor platform, such as ISAs or general investment accounts.

Vanguard, best known for pioneering cheap passive investing, said based on the average British pension holder, it will be the lowest-cost SIPP on the market.

Independent research of 14 SIPP providers by Platforum revealed that investors would be charged £176 in fees compared with up to £396 elsewhere. This is based on a £40,000 annual SIPP contribution in a single fund option.

Sean Hagerty, head of Europe at Vanguard, said: “The Vanguard Personal Pension is designed to reduce the cost and complexity of saving for retirement. An individual’s savings often represent a lifetime’s effort, yet many investors and retirees continue to be charged far too much on the proceeds of their own hard work.

“Fees can have a sizeable impact on investment returns, and consequently on the quality of life in retirement. We want to offer investors the clarity, peace of mind and value for money they deserve, through a service that is simple, effective, transparent and fairly priced.”