How much will income drawdown cost?
View how little drawdown within the Vantage SIPP will cost you by clicking on the tabs below.
Save hundreds a year in administration charges
Fixed Rate Cash Offers
We regularly offer our clients fixed-rate deals. 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. To find out about future offers, please register your interest.
|Term||Opened for subscription||Closes for subscription||No. of days interest||
(starting 15/11/2013, maturing 14/02/2014)
Offer now closed
(starting 15/11/2013, maturing 16/05/2014)
Offer now closed
We ask our clients to maintain a minimum cash balance of £10,000 in their account to cover any short term trading needs. Cash over and above this amount can be switched into our fixed rate offers. The minimum investment is £1,000.
Please remember, you won't be able to invest the money or use it to provide retirement benefits for the term you choose, so please only invest money you are certain you won't need in the interim. Please don't choose a Fixed Rate Cash Offer if you are planning to retire during the term.
You'll earn interest at our standard variable rate until the start of the fixed offer term. The interest from these fixed rate offers will be credited, and the capital available to reinvest, on the date of maturity - at which stage you'll start to earn interest at our normal variable rates on any uninvested cash.
How to apply for a Fixed Rate Cash Offer
Before investing please read the Key Features of the Fixed Rate Cash Offer.
To invest existing money, log in to your account and select your Vantage SIPP, click on the Cash tab, select the Fixed Rates option and follow the on-screen instructions.
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†||Net % for this tier only†||AER % for this tier only†|
|£7,000 - £49,999.99||0.05||0.04||0.05|
|£1,000 - £6,999.99||0.05||0.04||0.05|
|£0 - £999.99||0.00||0.00||0.00|
† Note: Interest is tiered within bands so you will currently receive 0% on the first £999.99, 0.05% (gross) on the amount above £1,000 and below £49,999.99 and 0.10% on balances above £50,000. 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.
If you hold cash balances in more than one Vantage account (i.e. a Vantage Stocks & Shares NISA and a Vantage Fund & Share Account) these will be considered separately when calculating the tiered interest. Interest is not paid on balances held within your income or Loyalty Bonus account.
For full cost details see our Terms & Conditions.
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.
- Discover how much income you could receive each month
- How withdrawals and charges will affect your income
- How investment performance can change your fund value
Income drawdown is a complex product, if you are at all uncertain about its suitability for your circumstances we strongly suggest you seek advice. Your income is not secure. You control and must review where your pension is invested, and how much income you draw within limits. Poor investment performance and excessive income withdrawals can deplete the fund leaving you short of income.
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Have a question about income drawdown?
If you have a question or would like more information call one of our specialists on:
Client case study
Mr Rowlands explains why income drawdown is his preferred choice and why he was attracted by the death benefits.
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 income 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 income 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.