Vanguard said that the SIPP, launched yesterday, is designed to cut the “cost and complexity” of saving for retirement. Initially, the SIPP is available to those who are building up their pension savings.

However, Vanguard says there are no other fees.

According to Platform data and analysis as at November 2019, this SIPP is the lowest-cost self-invested personal pension on the market for the average (median) British pension holder who has not yet drawn on their pension.

The cap applies across all accounts in an investor’s name on the Vanguard Personal Investor platform, including the SIPP, ISA, and general account.

With the SIPP, people can invest from £100 a month – or with an initial lump sum of £500.

The company offers pension savers the choice from its full range of more than 75 low-cost funds.

DON’T MISS

This is in addition to the range of ready-made portfolios designed for retirement.

Vanguard SIPP: Who is eligible?

To apply for a Vanguard Personal Pension, a person will need to be at least 18 years old.

They will also need to be a UK resident for tax purposes, and provide proof of identity.

Vanguard also points out that pension and tax rules may change in the future, and the value of investments can go down as well as up – meaning there is a risk a person may get back less than they invested.

Usually, it’s not possible to access pension savings or make any withdrawals until the age of 55.

Under current rules, a person is able to invest up to £40,000 per year under their annual pension allowance.

READ  Thomas Cook races to raise extra £200m to secure rescue deal

Should savings in a pension pot exceed 100 percent of earnings in a year, the lifetime allowance of £1,055,000, or the annual allowance of £40,000 a year, then a person will usually pay tax.



READ SOURCE

WHAT YOUR THOUGHTS

Please enter your comment!
Please enter your name here