Hargreaves Lansdown

Free personal illustration

If you are going into drawdown for the first time, your free, personalised drawdown illustration is the first step.

It will show you:

  • The income you might receive each year, over time. Income is not guaranteed
  • The potential remaining fund value in future years, using various assumed growth rates
  • The expected effect of withdrawals and charges on your fund

Once you request your illustration there is no obligation to apply. We will also send you our guide to New Drawdown with your illustration explaining the benefits and risks, as well as an application pack should you decide to proceed.

Important: Drawdown is a more complex option than an annuity. What you do with your pension is an important decision: you could run out of money. Make sure you understand your options and check they are suitable for your circumstances: take appropriate advice or guidance if you're unsure. Our service is not personal advice but we can offer advice if you specifically request this. The Government's free Pension Wise service can also help - more on Pension Wise.

Already in drawdown with Hargreaves Lansdown? If you want to convert from capped drawdown to New Drawdown request an application pack.

Already in drawdown with another provider? Download a transfer pack »

If you have an existing phased capped drawdown arrangement with Hargreaves Lansdown and would like to move further money into drawdown without removing the income cap, please contact us on 0117 980 9940 to request your illustration

Hargreaves Lansdown PLC group companies will usually send you further information by post and/or email about our products and services. If you would prefer not to receive this, please do let us know. Your personal data will remain confidential, and will never be passed to any other company, unless required by law.

How much income you take is entirely down to you. One way is to take only the income generated by the underlying investments, leaving the underlying capital intact to (hopefully) grow, although its value will of course fluctuate. Taking income in this way is called drawing the 'natural yield'.

As an example the natural yield for the UK stock market is currently around 3.5%*. This yield is historic and will vary in future; it is not guaranteed. It is provided to help you make your own decisions on what income to take, but you need to also factor in your attitude to risk and the nature of the investments you have chosen. 3.5% of a fund of £250,000 is £8,750.

Taking more than the natural yield from your income drawdown pension might mean selling investments and withdrawing from capital, which increases the risk of you running out of money later on in retirement which could seriously impact your lifestyle. Withdrawals are taxed as income. Don’t forget, you don’t have to take any income if you don’t want to: you could simply take the tax-free cash and leave the rest invested.

*Yield of FTSE 100 3.42% on 17 February 2015, source FT.