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Vanguard launches pension drawdown option

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Investment giant Vanguard has now launched a pension drawdown option allowing savers to take payments from their SIPP.

The Vanguard Self-Invested Personal Pension (SIPP) launched in February this year and at the time, was only available to those looking to build up their retirement pots.

It said it was looking to open up the product to those wishing to take payments from their pension in 2020/21.

Vanguard has now announced it is open to drawdown customers, and there are no additional charges for drawdown.

Vanguard, best known for pioneering cheap passive investing, applies a 0.15% account fee capped at £375 a year. It covers all accounts in an investor’s name, including a SIPP, ISA, and general account.

The SIPP offers access to 78 funds and Exchange Traded Funds (ETFs).

Just last week, revealed how Vanguard is now allowing in-specie transfers so investors can move existing Vanguard funds directly into their Vanguard SIPP.

Sean Hagerty, head of Vanguard, Europe said: “An individual’s savings often represent a lifetime’s effort, yet too many retirees continue to lose out on their own hard work to high fees and charges. Fees can have a sizeable impact on investment returns, and consequently on quality of life in retirement.

“Particularly in a time when economic conditions might be difficult, investors are best served by focusing on what they can control. Nobody can control the markets, but they can control what they pay to invest.

“At Vanguard, we aim to make this as easy as possible, through a service that is convenient, effective, and competitively priced.”

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