Fund manager and platform Vanguard has unveiled its own SIPP product, the Vanguard Personal Pension.

The US-owned fund manager claims the new pension is the lowest cost SIPP on the market with annual costs less than half that of the most expensive platforms.

The SIPP, launched today, has a 0.15% account fee capped at £375 across all accounts in an investors’ name on the Vanguard Personal Investor platform, including SIPP, ISA, and general accounts.

Vanguard says an investor using its SIPP would pay £9,800 less in fees and costs over a 25 year period compared to the most expensive equivalent SIPP.

Pension savers can invest from £100 a month or add an initial lump sum of £500.

The SIPP offers access to 77 Vanguard funds including exchange traded funds (ETFs) and Vanguard’s Target Retirement Fund and LifeStrategy ranges.

The company says the SIPP is open initially to “accumulation” stage investors but drawdown facilities will be added in the 2020/21 tax year.

Sean Hagerty, head of Vanguard, Europe, said: “The Vanguard Personal Pension is a pension designed to reduce the cost and complexity of saving for retirement.

“An individual’s savings often represent a lifetime’s effort, yet many investors and retirees lose out on their own hard work to high fees and charges. Fees can have a sizeable impact on investment returns, and consequently on the quality of life in retirement.”

 Vanguard says for investors adding the maximum £40,000 annual SIPP contribution in one of Vanguard’s single-fund retirement solutions – a Vanguard Target Retirement Fund - the annual cost would be £172 a year including fund fees, transaction costs, and SIPP charges, less than half the most expensive platform which would charge just under £400.