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Request your Drawdown illustration and application pack

What will your illustration show?

  • How your withdrawals could affect how long your pension lasts
  • What different growth rates could mean for your pension value
  • What might be left to pass on to your loved ones

We'll also send you our guide to drawdown to help you understand the risks and benefits, and compare other options.

Get started and enter your details below.

Your illustration is designed to help you understand how drawdown works. The figures are estimates only, based on assumptions which are explained in the illustration. What actually happens will depend on the size of your withdrawals and how your investments perform. Income isn’t guaranteed.

Usually you have to be at least 55 to access your pension (rising to 57 from 2028). If you’re younger we can still help you prepare for retirement, but you won’t normally be able to request an illustration or application.

Already in capped drawdown?

If you’d like to move more money into your HL capped drawdown pension or convert to flexible drawdown, call us to request an illustration and discuss the benefits and risks.

0117 980 9926

0117 980 9926

Transferring a drawdown pension

If you’d like to transfer your existing drawdown plan to HL, you need to request a transfer pack instead of an illustration. Check you won’t lose any valuable guarantees, or need to pay high exit fees, before applying.

Request transfer pack

Existing client?
Log in to your account and we'll complete your personal details for you.

Your illustration - pension details

£
£

How much you withdraw for income is entirely down to you, but remember withdrawals are taxable. You don’t have to take any income if you don’t need or want to. You could simply take your tax-free cash lump sum and leave the rest invested. Tax rules can change and any benefits will depend on your circumstances.

One strategy is to only take the income generated by your investments. This leaves the underlying capital intact to (hopefully) grow, although its value will fluctuate. Taking income in this way is called drawing the 'natural yield'.

Taking more than the natural yield from your pension might mean selling investments and withdrawing from capital. This increases the risk of you running out of money later on in retirement which could seriously impact your lifestyle. Yields are variable and not guaranteed.

Your illustration will assume you’re going to take 25% tax-free cash, however you can choose to take less than this on your application.

Your illustration - investment options

If you know where you'd like to invest your pension, please select your investments below (your illustration will be based on these investments, but they will not be taken as investment instructions). If you're unsure, or would rather not invest your pension straight away, select 'I plan to hold everything as cash'.

If you plan to withdraw your entire pension in less than five years, holding everything as cash might be a sensible option. You won’t suffer from any market falls and its unlikely inflation will have enough time to significantly affect the buying power of your cash. But if you need your pension to last longer, you might choose to invest your money in the hope of greater returns. You don’t have to invest, but remember when the interest rates you receive are lower than inflation, the buying power of cash in your pension will fall over time.

My investment choices Amount

Your application - risk questions

Before we can send you a drawdown application form, we need to check you understand the risks by asking you some questions. If you complete these now, we’ll send your application along with your illustration. Even if you don't want to apply right now, it's a good idea to run through these risks to help you decide if drawdown could be right for you.

There are 15 questions, which should take around five minutes to answer, that must be completed by the account holder. If you’re unsure about any of the risks you should seek guidance or advice.

If you’d rather skip these questions for now, we’ll send them to you in the post along with your illustration. You can then complete them at a later date.


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 haven’t received Pension Wise guidance or personal advice, we strongly suggest you do this before proceeding.

Section B: your circumstances

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 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), the returns you achieve 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. 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, your income isn’t guaranteed with drawdown. The value of 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 from 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 from 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 from 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 and any benefits you receive will depend on your circumstances. 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 different 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. The investments you choose may have their own charges in addition to our account charges. 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 flexi-access 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 employer contributions and 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 April 1999 and April 2019, inflation saw the costs of goods and services rise by 75.8%. This means an equivalent range of goods and services costing £1,000 twenty years ago would typically have increased to £1,758. 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 your money, with no compensation available. Unfortunately investment scams exist and tend to be carried out by firms which aren’t regulated by the Financial Conduct Authority (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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