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Drawdown

Drawdown

A flexible way to access your pension

Guide to drawdown Drawdown illustration

What is drawdown?

Drawdown is one of the most flexible ways to access your pension, available from age 55. You can usually take up to 25% as a tax-free cash lump sum and keep the rest invested for later. You’re in control of how much income you take (which is taxable), and can make withdrawals whenever you want to.

You have the freedom to choose your own investments, and if they perform well you could receive a growing income throughout retirement. Any money left over when you die can be passed on to your loved ones, often tax free.

Tax rules can change, and the benefits will depend on your own circumstances.

Take a look at our guide to drawdown to find out more about the risks and benefits, and how other options compare.

Up to 25% tax free cash

What are the risks?

Compared with other options like an annuity, which provides a guaranteed income for life, there’s more risk with drawdown.

Investments can fall and rise in value, so your income won’t be secure, and you might get back less than you originally invested.

You'll need to think carefully about the income you’ll need when you’re older. You could run out of money if your investments don’t perform as you’d hoped or you take too much income too soon.

These risks mean drawdown won’t be right for everyone, and you'll need to regularly review where you're invested and how much income you're taking.

Learn more about how drawdown works

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Transfer to HL. Act by 17 December and get cashback as a thank you.
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Draw down your pension with HL

Drawdown is available through our self-invested personal pension ( SIPP). You can view our charges here.

The first step to drawdown

To see what might happen to your pension value and income, you can request a personal drawdown illustration.

It’ll show how your chosen income withdrawals and investments could affect your pension value over time. It’ll also give you an idea of when your money might run out (or what might be left over).

Get your illustration

Already in drawdown and looking for a better service?

If you want to find out more about drawdown with HL, you can request a transfer pack or visit our transfer page.

Before transferring please check you won't lose valuable guarantees or need to pay high exit fees. If you choose to transfer your investments as they are, you won't be able to make any changes whilst the transfer goes through. If you transfer as cash you'll miss any market rises, but you won't be affected by any market falls either.

Request a transfer pack

Find out more about transferring

Why choose drawdown with HL?

  • Expert help is only a phone call away. Call 0117 980 9940 and you'll speak to a knowledgeable person straight away, with no ‘press one for this, two for that’.
  • 24-hour online access. Monitor your account around the clock and place investment instructions with a click, or the swipe of a finger on our mobile apps.
  • Advice if you need it. You can manage the account yourself, take personal advice, or pick and mix the level of help and advice you need.
  • Help choosing investments. We provide research updates on a wide range of investments, including popular shares and funds.
  • No time restrictions. You can stay in drawdown indefinitely, or buy a secure income at any time. Unlike some other providers, we won’t force you out at any age.

Tools to help you make the most of your income

Retirement is a time to do more of the things you love. Our online tools could help you to manage your drawdown plan so you can put your hard-earned money to good use. Here are some of our most popular resources to help get you started.

Drawdown investment strategies for growth and income

Drawdown calculator, see how long your pension could last

Guide to saving tax in retirement, useful tips and examples

Income tax calculator, see how much tax you might pay on withdrawls

Passing on your wealth to loved ones, how it works and how much tax they'll pay