Vanguard targets young investors with low-cost retirement fund launches

For investors planning a a 2060 or 2065 retirement date

Vanguard has expanded its Target Retirement Funds (TRFs) offering with the launch of two new low-cost products, designed for professionals just starting out in their careers and predicting a 2060 or 2065 retirement date.

The launch of the Vanguard Target Retirement 2060 and 2065 funds, which invest across the firm's equity and bond index funds and ETF products, brings the group's TRF offering to 11 funds. These funds automatically adapt their asset mix to each stage of an investor's life and career. They can be included in a tax-efficient pension wrapper, with investors increasingly considering using an Individual Savings Account (ISA) to save for their retirement, according to Vanguard. Assuming the funds maintain an OCF of 0.24%, an annual account fee of 0.15% and achieve 5% annual growth, Vanguard ...