Vanguard has launched a financial planning service for accumulation savers, Vanguard Personal Financial Planning.
Vanguard said it will cost 0.79% for the advice service, including ongoing fund charges, transaction and platform fees. It will be a restricted service, recommending only Vanguard products and investments.
The advice arm will service those who have more than £50,000 to invest through its Vanguard UK Personal Investor platform. The investment giant said it would recommend "a tailored investment portfolio made up of a finely-tuned mix of low-cost and broadly diversified equity and fixed income funds".
For some investors, the cost of advice is a barrier. The data indicates people can pay more than 1.5% for advice, platform, and fund management charges."
Vanguard also said it would reduce the level of risk its clients are exposed to as they approach retirement. It will cost 0.5% for the firm's advice, 0.12% for the ongoing fund charges, 0.15% for the platform fee and 0.02% for transaction costs, with no entry or exit fees, it added.
Head of Vanguard Europe Sean Hagerty said: "Vanguard Personal Financial Planning gives value to investors by providing high-quality, low-cost, retirement saving advice, through a service that investors can access at their convenience.
"We strongly believe that many people will benefit from taking financial advice, particularly in preparation for retirement. However, research, including a recent FCA report, shows that over 90% of the UK's adult population do not currently take advice."
He added: "For some investors, the cost of advice is a barrier. The data indicates people can pay more than 1.5% for advice, platform, and fund management charges. It's not uncommon to see fees north of 2%. With people living longer and working longer, these costs have the potential to make a considerable dent in their hard-earned retirement savings."
First published by our sister title Professional Adviser