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Free drawdown illustration

If you are considering moving money into drawdown, requesting your free, personalised drawdown illustration is the first step.

It will show you:

  • The income you might receive each year. 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 proceed. We will also send you our guide to drawdown, explaining the benefits and risks, and we will outline the next steps should you want to proceed.

Already in drawdown? If you are in drawdown with another provider:

Request a transfer pack

If you are in drawdown with Hargreaves Lansdown and want to convert from capped to flexible drawdown: request an application pack. If you have a capped drawdown arrangement with us and would like to move further money in without removing the income cap, contact us on 0117 980 9940.

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 higher risk 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.

Pension details

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How much income you take is entirely down to you. 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.

One way to take income is to only take the income generated by the underlying investments. This leaves 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 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 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.

*Yield of FTSE All Share was 3.47% on 31 March 2017, source FTSE.

Your illustration will assume you are going to take 25% tax-free cash, however you can choose to take less than this.

Investment options

If you know where you'd like to invest your pension, please select your investments below, and your illustration will be based on these investments. If you're unsure, or would rather not invest your pension straight away, please select 'hold as cash'. Please note, the investments you choose below are for your illustration only. They are not an investment instruction.

Investments Amount

Risk questions

Before we can send you a drawdown application form, we need to check you understand the risks by asking you some questions. There are 15 questions which should take around five minutes to complete. These should be completed by the account holder.

If you complete these now, we’ll send you a drawdown application form with your illustration. So you’ll be able to apply right away if you want to.

If you are unsure about any of the risks you should seek guidance or advice before proceeding. We can send your illustration in the post with the risk questions for you to complete later.

Would you like to answer risk questions now?

Section A: Understanding your options

Question 1

Have you received guidance from Pension Wise?

Question 2

Have you received personal advice from a regulated financial adviser?

What you do with your pension is an important decision. If you have not received Pension Wise guidance or personal advice, we strongly suggest you do this before proceeding as this is an important and sometimes irreversible decision. Please only complete the following risk questions if you are happy to continue at this time.

Section B: Risk questions for drawdown

Question 3

Are you happy to take responsibility for your retirement income, including where you invest, and will you review these regularly?

IMPORTANT: With drawdown you’ll have to take responsibility for your income and investment decisions, and you’ll need to review these regularly. Nobody other than you will be accountable for any poor decisions you make. How much income you get, and how long your pension lasts, will depend on how much you withdraw (particularly in the early years), where you invest, how these investments perform and how long you live. You’re choosing to proceed without personal financial advice from Hargreaves Lansdown so you must be confident (and comfortable) making these decisions yourself. If you’re still unsure don’t continue. Seek personal advice or guidance.

With this in mind, are you happy to continue?

Question 4

Do you understand you could run out of money earlier than planned in drawdown, if things don’t go the way you want?

IMPORTANT: Your pension remains invested so its value, and your future income, can fall due to weak investment performance or poor investment decisions. Drawing too much income too early will also reduce its value. In the worst case you could run out of money entirely, leaving you reliant on the State. Unlike an annuity, which provides a secure income for life, there are no guarantees with drawdown. Your pension and income aren’t secure. If you’re still unsure don’t continue. Seek personal advice or guidance.

With this in mind, are you happy to continue?

Question 5

If you intend to draw income, do you understand how this might be generated from investments and why drawing on capital carries additional risks?

IMPORTANT: Unlike an annuity, income from drawdown isn’t secure and will vary. If you withdraw more than the growth provided by your pension investments, withdrawals won’t be sustainable. Selling investments to create income increases the risk of running out of money. Taking just the income provided by the growth of your investments is known as taking the ‘natural yield’. This generally carries lower risks than selling your investments to create an income, which is known as ‘drawing on capital’. The value of investments and the income they produce can fall as well as rise. If you’re still unsure don’t continue. Seek personal advice or guidance

With this in mind, are you happy to continue?

Question 6

In poor market conditions, could you afford to limit your withdrawals to reflect the performance of your chosen investments?

IMPORTANT: Drawing on capital in times of poor market conditions will seriously reduce the value of your pension, making it harder if not impossible to regain any losses. If you need to draw on capital even in times of poor market conditions, you should consider if drawdown is really appropriate for you. If you’re still unsure don’t continue. Seek personal advice or guidance.

With this in mind, are you happy to continue?

Question 7

Do you understand the tax treatment of income withdrawals?

IMPORTANT: You could pay more tax than you intend to, or more (or less) than you owe. Drawdown providers will deduct tax, where applicable, before income withdrawals are paid out. This income is added to any other income you’ve received in that tax year. So taking large withdrawals could mean you’re pushed into a higher tax bracket. For investors taking an income for the first time, it’s likely emergency tax will be deducted. If you pay too much tax you’ll be able to reclaim this from HMRC directly. The tax you pay will depend on your circumstances, and tax rules can change in the future. If you’re still unsure don’t continue. Seek personal advice or guidance.

With this in mind, are you happy to continue?

Question 8

Have you shopped around to compare your retirement options and the services available from other drawdown providers?

IMPORTANT: You could find yourself choosing an option which isn’t right for you. Shopping around allows you to compare the different options, including the benefits and risks, and services of different providers. For example drawdown can provide a flexible income but this isn’t secure. Other options, such as annuities, can offer a secure income for life, but they aren’t flexible. Understanding the different options and how these work will help you choose the option that’s right for your circumstances. If you’re still unsure, don’t continue. Seek personal advice or guidance.

With this in mind, are you happy to continue?

Question 9

Have you considered how charges might affect your drawdown plan or any other retirement options you’ve considered?

IMPORTANT: Charges will reduce your retirement income and/or value of investments. Most investments carry charges, and the money you ultimately receive depends on the investment returns, less any charges. So it’s important you consider the charges of your drawdown plan as well as the charges of any other options you’re considering. The charges for drawdown in the HL SIPP are shown in the Terms and Conditions. Additional charges could also apply depending on the investments you choose. If you’re still unsure don’t continue. Seek personal advice or guidance.

With this in mind, are you happy to continue?

Question 10

If you intend to make further contributions to your money-purchase pensions (including your SIPP), will they total less than £4,000 each tax year?

IMPORTANT: If you’re still paying into pensions, flexibly accessing pension benefits (which includes starting to take a taxable income from flexible drawdown) could restrict how much you can pay in without incurring a tax charge. Future contributions to money purchase pensions, such as SIPPs and other personal pensions, could be restricted to a maximum allowance of £4,000 each tax year. This is known as the Money Purchase Annual Allowance (MPAA). This allowance figure includes any tax relief received or due on the contributions made. Contributions over this limit will be subject to a tax charge. If you only hold Capped Drawdown and don’t flexibly access benefits elsewhere, this restriction won’t apply. If you’re still unsure don’t continue. Seek personal advice or guidance.

With this in mind, are you happy to continue?

Question 11

Have you checked you’re not giving up valuable benefits or guarantees, or will need to pay high exit penalties by transferring your pension?

IMPORTANT: You could lose valuable guarantees or allowances (like a higher tax-free cash entitlement – over 25%) which you can’t get back. You could also trigger high exit fees. Before you do anything, you should check all these details with your current pension provider. If you have guarantees we suggest you seek personal advice before applying to transfer. If you’re still unsure don’t continue. Seek personal advice or guidance.

With this in mind, are you happy to continue?

Question 12

Have you considered the effects of inflation (i.e. rising prices) on your plans?

IMPORTANT: Retirement might last 30 years or more. Inflation will affect the value of your income in real terms as the cost of living rises. You might find yourself running short of money, even if the amount of income you take stays the same. Prices rise over time. For example, between August 1997 and August 2017, inflation saw the costs of goods and services rise by 73%. This means an equivalent range of goods and services costing £1,000 in August 1997 would typically have increased to £1,730. If you’re still unsure don’t continue. Seek personal advice or guidance.

With this in mind, are you happy to continue?

Question 13

Do you understand how taking your pension could affect any means-tested state benefits you receive?

IMPORTANT: Withdrawing money from your pension might reduce any means-tested benefits you receive. You can find more details about means-tested benefits at gov.uk/benefits-calculators. If you’re still unsure don’t continue. Seek personal advice or guidance.

With this in mind, are you happy to continue?

Question 14

Do you understand the implications of taking money from your pension where you have debt (e.g. loans, mortgages, credit cards)?

IMPORTANT: Any money held in a pension may be protected from your creditors if you’re in debt and they take action against you. But once you take it out any protection could be lost. If you get into serious financial trouble, you should take extra care before withdrawing money from your pension. If you’re still unsure don’t continue. Seek personal advice or guidance.

With this in mind, are you happy to continue?

Question 15

Are you aware that investment scams exist which target people who’ve withdrawn, or plan to withdraw, money from their pension?

IMPORTANT: If you fall victim to these scams you could lose most or all of any money you invest, with no compensation available. Once money is drawn from a pension, you should be careful where you re-invest it. Unfortunately investment scams exist and tend to be carried out by firms which aren’t regulated by the FCA. Warning signs of a scam often include cold calling or texting, pressure to act quickly, the promise of unique or unusual opportunities, the offer of quick and easy profits, or something that seems too good to be true. You can find out more at fca.org.uk/scamsmart. If you’re still unsure don’t continue. Seek personal advice or guidance.

With this in mind, are you happy to continue?

Personal details


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This literature is for UK investors only. We are not authorised to send our literature to areas outside the jurisdiction of UK regulation and will be unable to send this literature to any address in the Channel Islands or outside the UK.

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 higher risk 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.