Vanguard Investor Pension Review

as of 23/03/2021 at 4:26 pm

Our View

Vanguard have been growing at a rapid rate in the UK, with money flowing into their SIPPs since they launched their pension offering in Feb 2020. The introduction of drawdown now means these guys offer a very credible, no frills, low-cost pension which is good for both those saving up and those in retirement. Be warned – it is not for people who like assembling a pick and mix pension. The website and associated information is sparse, but these guys are rock solid and cheap. If you want a good, ready-made, balanced, passive fund – look no further.

Our Pension Rating

Recommended For

Beginner Investor

Confident Investor

In a nutshell

Low cost

No access to shares

Straightforward investments

You Say

Your overall rating

Based on 88 reviews

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What to Expect

Investment Choice


Stocks and Shares ISA

Junior ISA

Investment Account


Investments available

Own brand funds

Investment help


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The 'Geeky' Details

Provider details

Vanguard is one of the world's largest asset management groups, with Vanguard Investor so investors can buy its funds directly.

When you hear Vanguard you should immediately think “low charges”. The account fee is 0.15% per year, capped at £375. Effectively, this means no platform fees on anything over £250k. This low-cost service won’t offer research and shares, bells or whistles, but with its LifeStrategy range of funds it will manage your money in a decent portfolio, spread around lots of global investments which are picked and run for you, for around 0.41% all-in or £4.10 on a £1,000 investment. You can only hold Vanguard's investments – so you can’t access other fund managers or buy shares here.

Vanguard recently launched pension drawdown options for those looking to take payments from their pot. This drawdown service comes at no additional cost to investors.

Important Facts & Figures

Provider Size:

New investment service from one of the world's largest asset managers.

Minimum amounts: £500 minimum lump sum investment
£100 minimum monthly investment

Your Questions

"Hello! I'm 22 years old and trying to navigate my finances. I have a comfortable safety buffer of £15,000, I'm contributing to my workplace pension and I'm also putting money into a cash LISA. I would now like to put £100 a month into a Stocks and Shares ISA. After exploring Boring Money, I've decided to opt for the Vanguard LifeStrategy 80% Equity Fund. I'm planning on investing this money for at least ten years. However, I wanted to know if there is any possibility of reducing risk after this time? For example, could I perhaps transfer to the 60% Equity Fund? Thanks for your help."

Lucy, London


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"I have been paying into Vanguard Lifestrategy for a few months now, despite losses during the peak of the coronavirus outbreak I am now making gains again now. I regret not putting more money into the market at the very bottom in March, but I thought things were going to get a lot worse and I'm quite a cautious investor, but instead the recovery took me by surprise. I still would like to put more money in but but not all in one go, but feel time is against me. I'm 50 now and hope to retire at 60. This gives me just 9.5 years to pay in and grow, do you think this is a long enough period to invest in or am I now stuck with low interest bank accounts? I also read your weekly blog today that was sent to me, it mentions that if we experience higher inflation this could hit shares and particularly bonds. Now this is somewhat concerning, but it may be years away and I can't afford to sit on the sidelines waiting for the dips to arrive. I have my money split between Vanguard LS 60 & 80 with slightly more in 60. So basically my question to you is - with only a ten year timeframe, am I coming to the end of my investing life and should now stick with cash if shares and bonds are likely to take a hit in a few years? But where else is there to go for a health return?"

Richard, Hull


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"With China (well on the face of it) emerging from the COVID-19 nightmare, and its economy already up and running as the US, UK, and other countries are still battling, is now a good time to invest into China? What funds with equities that have a China focus are out there on the market? As a novice investor, I was looking at Vanguard's LifeStrategy 60% fund but know this is heavily geared towards the UK market. Any suggestions/thoughts would be most welcome!"

Tariq, Lancashire


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