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How much will drawdown cost?

Important information - A SIPP is a type of pension for people happy to make their own investment decisions. Investments go down in value as well as up so you could get back less than you invest. The rules mentioned are those currently applying and could change in the future. You can normally only access the money from age 55 (57 from 2028). Tax reliefs depend on your circumstances. This website is not personal advice, if you are unsure an investment is right for you, please seek advice.

Low costs mean more of your money working for you. The Vantage 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
  • Contributions - 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


This charge applies to each Vantage 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.



£0 - £250,000
£250,000 to £1m
£1m to £2m
Over £2m


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

(shares, exchange traded funds and investment trusts)

Online and mobile app

Deals previous month

Dealing charge

0 - 9 deals
10 -19 deals
20 or more deals
Deals within a Junior SIPP

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 Vantage accounts held under the same client number. The £5.95 dealing rate in the Junior SIPP is achieved via a cash rebate at the end of the month, offsetting the difference between the dealing rate that was applied and £5.95.

Phone and post dealing

1% (£20 minimum, £50 maximum)

Please note: 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


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

PTM (Panel on Takeovers & Mergers)


UK share deals over £10,000

Irish Stamp duty


Purchase of Irish shares

French Financial Transactions Tax


Purchase of French shares

Italian Financial Transactions Tax


Purchase of Italian shares

Overseas share dealing foreign exchange rates

Value of trade

Additional spread

£0 - £24,999
£25,000 - £49,999
£50,000 - £99,999

Overseas shares covered by the Hargreaves Lansdown Overseas Share Dealing Service are traded at our standard rates (above) and can be traded online, by phone or post. They will be dealt at the overseas market price and converted into sterling by either Hargreaves Lansdown or a UK-based market maker, at a rate based on the prevailing interbank exchange rate to which a fee will be added by Hargreaves Lansdown or the UK-based market maker, as applicable, through an additional spread of up to 1.5%. The additional spread will depend on the size of the deal, as per the table above. This fee is to cover the costs incurred in facilitating the Overseas Share Dealing Service. Further details are available on request.

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 or clients who held Flexible Drawdown in the Vantage SIPP pre April 2015).

Transfer out to another provider (as cash)


Transfer out to another provider (as stock)

£25 per holding

Transfer out to overseas scheme
(In addition to cash or stock transfer out fee)


Pension splitting on divorce

£295 + VAT

Cash transfer from other Vantage account

No charge

Limit orders

No charge

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

£1.50 per deal

Arranging death benefits

£295 + VAT

6 monthly statement and valuation

No charge

6 monthly statement and
valuation (paper)

£10 + VAT per statement &

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 Vantage 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 Vantage Fund & Share Account.

Interest rates

Fixed Rate Cash Offers

Fixed rate cash offers are sometimes available in the Vantage SIPP. You can earn a competitive interest rate on the cash in your SIPP, provided you leave the money in cash for three or six months. No offers are currently available, but to find out about any future offers please register your interest.

Standard variable interest

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 05/03/2009: 0.5%. 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 currently receive 0.05% (gross) on the first £4,999.99, 0.05% on the amount above £5,000 and below £24,999.99 and 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


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 Vantage SIPP which were set up before April 2015, when the standard account closure fee will apply.


Annuity quotation No charge
Annuity purchase No transfer-out charge if purchased via Hargreaves Lansdown, otherwise £150 + VAT. 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.

Get a free drawdown illustration

  • Discover how long your pension fund might last
  • How withdrawals and charges will affect your income
  • How investment performance can change your fund value

Free drawdown illustration

Important information

The information on our website is not personal advice but we can offer advice if specifically requested. What you do with your pension is an important decision, which could be irreversible. Drawdown is a more complex option than an annuity. Make sure you understand your options and check they are suitable for your circumstances: take appropriate advice or guidance if you are unsure. The Government's free Pension Wise service can help. It provides impartial guidance face-to-face, online or by phone - more on Pension Wise.

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Client case study

Drawdown case study - Mr Rowlands

Mr Rowlands explains why drawdown is his preferred choice and why he was attracted by the death benefits.

Read his story

Drawdown case study - Mr Rowlands

Client case study: Mr Rowlands, Manchester

I paid into my old work pension in order to receive my employer's contributions, but I made contributions into my SIPP rather than doing AVCs as the insurance company scheme had high charges. At age 60 some of my pensions matured and I transferred them to my SIPP.

I have stopped working full-time but still do some part-time consultancy. I feel we are moving to a more European lifestyle where retirement is a gradual process so drawdown is ideal for me. On the one hand I have taken some tax-free cash and have the option of taking an income but on the other hand I still make tax-relievable contributions to my SIPP.

I already have an annuity, some final salary pension provision and the state pension due in the future so I can afford to take a more ambitious approach with my drawdown investments.

I chose drawdown because the death benefits were more attractive than an annuity - my fund will provide my wife with a pension upon my death and will be passed as a lump sum, albeit less a tax charge, to our dependants after she dies.

I mostly manage my account through the website. When I log in everything is very clear and transparent. I contrast this with my old insurance company pension with their pages of complicated information and the two are night and day! I wouldn't hesitate to recommend the HL SIPP.