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A flexible way to access your pension

Apply Now Use our drawdown calculator

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.

See how drawdown works

More about the risks and benefits

Drawdown charges

Drawdown is free to set up. And you can start, stop or change your income withdrawals whenever you want, free of charge.

Our yearly charge for holding investments is never more than 0.45%. Some investments will have their own annual charges, so please check these first before you invest.

It’s free to buy and sell funds. Other dealing charges depend on the type of investment and how often you trade.

View drawdown charges

Apply for drawdown with HL

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

How to apply

You should understand the risks and benefits of drawdown before you start, and our drawdown calculator can help to make sure it's right for you.

When you're ready, you can choose how you want to apply

Apply for drawdown

Already in drawdown and looking for a better service?

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.

Find out more about transferring

Request a transfer pack

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 plan

Guide to saving tax in retirement

Useful tips and examples

Guide to investing in drawdown

Strategies for growth and income