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How much will drawdown cost?

Important information: What you do with your pension is an important decision that you may not be able to change. You should check you're making the right decision for your circumstances and that you understand your options and the risks. Drawdown is a more complex option than an annuity. The government's free and impartial Pension Wise service can help you and we can offer you advice. The information on our website is not personal advice.

Low costs mean more of your money working for you. The HL SIPP could help you make more of your pension, giving you more money for your retirement. Our SIPP is FREE to set up and low cost to run and you could also benefit from super-low fund charges.

  • Set up - No charge
  • Transfers in* - No charge
  • Account inactivity - No charge

* Before you transfer please ensure you will not lose any valuable guarantees or incur excessive exit fees.

Charges for taking an income at retirement

Annual management charges

Funds

This charge applies to each HL account separately. It is tiered within bands: 0.45% per annum on the first £250,000 of funds; 0.25% for funds between £250,000 and £1m; 0.1% for funds between £1m and £2m, and no charge on the value of funds over £2m.

Amount

Charge

£0 - £250,000
0.45%
£250,000 to £1m
0.25%
£1m to £2m
0.10%
Over £2m
0.00%


Cash

No charge


Shares, investment
trusts, ETFs, gilts
& bonds

0.45% a year (Capped at £200 a year
across all holdings in the account)

Note: The investments you choose may have their own initial and annual charges and a bid offer spread. Hargreaves Lansdown receives commission from some fund groups for arranging and administering your investments. Details are available in our key features document, the trading pages of our website and on our contract notes.

Dealing charges (per deal)

Fund dealing

(unit trusts and OEICs)

Online, phone and post dealing

No charge

We also offer up to a 5.5% saving on the initial charges made by the fund manager


Reinvestment of income

1% (£1 minimum, £10 maximum)

In each account, if you choose automatic reinvestment, any dividends you receive will be reinvested once they reach £10 per holding.

Share dealing

Online and mobile app


(Including UK and overseas shares†, investment trusts, exchange-traded funds, gilts and bonds.)

Deals previous month

Dealing charge

0 - 9 deals
£11.95
10 -19 deals
£8.95
20 or more deals
£5.95

The online share dealing charge is determined by the number of deals you placed in the previous calendat month. The tariff you pay in August, for example, will depend on the number of share deals you place in July, and we count deals placed across all the HL accounts held under the same client number.


Phone and post dealing

1% (£20 minimum, £50 maximum)

Please note: most residual stocks, bonds, gilts, VCTs and PIBS can only be dealt over the phone.


Equity regular savings

£1.50 per stock per month

Available on FTSE 350 shares and selected investment trusts subject to a minimum of £25 per stock per month.


Reinvestment of income

1% (£1 minimum, £10 maximum)

In each account, if you choose automatic reinvestment, any dividends you receive will be reinvested once they reach £10 per holding.

Government taxes and levies (per deal)

UK Stamp duty

0.5%

Purchase of UK shares (rounded up to the nearest £5 for residual shares)


PTM (Panel on Takeovers & Mergers)

£1

UK share deals over £10,000


Irish Stamp duty

1%

Purchase of Irish shares (where the total cost of the transactions is more than 1,000 euros)


French Financial Transactions Tax

0.3%

Purchase of certain French shares


Italian Financial Transactions Tax

0.1%

Purchase of certain Italian shares

†There’s an added foreign exchange charge for overseas share deals, depending on deal size. See our overseas share dealing page for details.

Account administration

Standard account closure fee

£25 + VAT

(Does not apply if funds are transferred to another Hargreaves Lansdown account)


Early account closure fee

£295 + VAT

(This fee applies instead of the standard account closure fee when funds are paid to you as income and the SIPP account has been open for less than 12 months. Not applicable to pension transfers out.)


Transfer out to another provider (as cash)

£25


Transfer out to another provider (as stock)

£25 per holding


Cash transfer from other HL account

No charge


Limit orders

No charge


Automated sales to cover charges
(Selling fund units or shares to meet fees)

£1.50 per deal


6 monthly statement and valuation
(paperless)

No charge


6 monthly statement and
valuation (paper)

£10 + VAT per statement &
valuation


How we collect fees

We make it as easy as possible by collecting fees automatically from your account.

Charges will first be collected from cash in your SIPP. The "Suggested Minimum Cash Balance" gives you an idea of how much you should hold to meet future fees. It is just a suggestion and you can ignore it if you wish.

If you have no cash in your SIPP, we will collect fees from loyalty bonuses received on units purchased before 1 April 2014, and then from any cash in your HL Fund & Share Account.

As a final resort, we will sell holdings in your SIPP to cover the amount owed and restore the minimum cash balance. There will be a small charge of £1.50 per deal. We will normally sell units of the largest fund holding first. If, for whatever reason, we are unable to sell units of the largest fund holding, we will sell units in the next largest fund holding, and if you don't hold funds, we may sell part of other holdings.

To avoid having investments automatically sold, you can easily top up the cash balance of your SIPP with your debit card (subject to the pension allowances) or add money to a HL Fund & Share Account.

Interest rates

If you want to have some cash in your SIPP ready to invest, you can earn tax-free interest at our variable rate. The higher the cash balance, the higher the interest you earn.

Base rate since 02/11/2017: 0.50%. All rates are variable unless stated otherwise.

Account Balance Gross % for this tier only† AER for this tier only†
£100,000+ 0.20 0.20
£25,000 - £99,999.99 0.10 0.10
£5,000 - £24,999.99 0.05 0.05
£0 - £4,999.99 0.05 0.05
† Note: Interest is tiered within bands so you will receive 0.05% (gross) on the first £4,999.99, 0.05% on the amount above £5,000 and below £24,999.99, 0.10% on the amount above £25,000 and below £99,999.99, and 0.20% on balances over £100,000. These tiered rates should not be directly compared to the AER, gross or net interest rates of accounts which are not tiered or have a different tier structure.

Taking an income at retirement

Drawdown

Flexible drawdown Capped drawdown
Starting drawdown No charge No longer available to new investors
Each GAD calculation N/A £75 +VAT
Regular income payments No charge No charge
Alter payment amount /frequency No charge No charge
One-off payments No charge* No charge

*A drawdown account closure fee applies instead of the standard account closure fee (£25 + VAT) when funds are withdrawn and the drawdown account has been open for less than 12 months. Not applicable to transfers out or clients who held Flexible Drawdown accounts in the HL SIPP which were set up before April 2015, when the standard account closure fee will apply.

Annuities

Annuity quotation No charge
Annuity purchase No transfer-out charge if purchased via Hargreaves Lansdown. An annuity purchase via Hargreaves Lansdown will generate a commission or fee payment, which will be shown on your annuity quotation.

Uncrystallised Funds Pension Lump Sum (UFPLS)

Taking an UFPLS No charge**

**A SIPP account closure fee applies instead of the standard account closure fee (£25 + VAT) when funds are withdrawn and the SIPP account has been open for less than 12 months.

For full cost details see our Terms & Conditions.

Important information

The above fees exclude the cost of any advice you may require. If you require advice, you would agree this cost separately with an adviser.

If you have more than one SIPP account (for example, an account from which you have not taken an income and an account in drawdown), any charges applied to those accounts will be treated separately.