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 information - Please note drawdown is a more complex option than an annuity and if you make the wrong decisions you could run out of money. What you do with your pension is an important decision. Therefore, we strongly recommend you understand your options and check they are suitable for your circumstances: take appropriate advice or guidance if you are unsure. Our service is not personal advice. We offer a range of information to help and independent financial advice if requested. Alternatively, Pension Wise, the Government's new pension guidance service, provides a free impartial service to help you understand your options at retirement. It's available at www.pensionwise.gov.uk, by calling 030 0330 1001, or face to face.

Already in drawdown? If you wish to convert an existing Vantage SIPP capped drawdown plan to New Drawdown, or have additional funds that you would like to add to an existing drawdown arrangement, please call us on 0117 980 9926 or request an application pack. If you have a drawdown plan elsewhere please download a drawdown 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.