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".

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