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How to apply for Drawdown

Accessing your pension through drawdown gives you flexibility. Here's how drawdown works, and how you can apply. Remember, the earliest you can normally access money in a pension is age 55 (57 from 2028).

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Drawdown summary

Drawdown is a flexible way to access your pension. 

You can choose to move your whole pension into drawdown, usually taking up to 25% of your SIPP as a tax-free lump sum. Or you can choose to move only some of your pension into drawdown and take up to 25% of that amount as tax-free cash.  

Anything you do not withdraw stays invested as you choose in your new drawdown account. You can make taxable withdrawals as and when you need to, and move more of your pension into drawdown later if you wish.

Before you apply

  • You should fully understand how drawdown works and the risks involved.        
  • You should know how you plan to use your money in drawdown, including your tax-free cash.

How to apply for drawdown with HL

  • We’ll ask you questions about your drawdown understanding, your previous pensions and your attitude to risk. 
  • We’ll ask you how much tax-free cash you want to take. 
  • You choose whether to move all your SIPP into a drawdown account and close your SIPP, or only move some of it. 
  • If you’re moving some, you choose which investments to bring across. 
  • You’ll get an illustration showing how long your drawdown pot could last. 
Apply for drawdown

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