Pension charges doubling for going into drawdown at Hargreaves Lansdown

jaybeetoo

If you have a SIPP with HL and you are invested in exchange traded assets (e.g. shares, ETFs, investment trusts), the annual charges are capped at £200 a year.

I’ve discovered that if I move part of my SIPP into drawdown, my annual pension charges will double.  It will be £200 for the SIPP and £200 for the drawdown account.

I think HL’s web site and literature are misleading as it says there is no charge for going into drawdown.  This is clearly not true for my situation.

This is not a problem if you are invested in funds.

I wasn’t aware of this until I started the drawdown process.  Maybe I should have been.

Marcon

jaybeetoo said:

If you have a SIPP with HL and you are invested in exchange traded assets (e.g. shares, ETFs, investment trusts), the annual charges are capped at £200 a year.

I’ve discovered that if I move part of my SIPP into drawdown, my annual pension charges will double.  It will be £200 for the SIPP and £200 for the drawdown account.

I think HL’s web site and literature are misleading as it says there is no charge for going into drawdown.  This is clearly not true for my situation.

This is not a problem if you are invested in funds.

I wasn’t aware of this until I started the drawdown process.  Maybe I should have been.

Wouldn't it be sensible to make this point to HL if you feel their information is misleading?

xylophone

https://www.hl.co.uk/retirement/drawdown/charges-interest-rates

Drawdown is available through the HL Self-Invested Personal Pension (SIPP)

It's free to set up drawdown with us through the HL SIPP. And you can start, stop or change your drawdown income withdrawals whenever you want, without charge.

Please note that the charges below will apply to the HL SIPP and drawdown account separately if you hold both accounts.

dunstonh

I’ve discovered that if I move part of my SIPP into drawdown, my annual pension charges will double.  It will be £200 for the SIPP and £200 for the drawdown account.

I think HL’s web site and literature are misleading as it says there is no charge for going into drawdown.  This is clearly not true for my situation.

They are not charging for the drawdown transaction.  They are charging because you have two SIPPs.  One with crystallised funds and one with uncrystallised.     However, having just read the charges page, it isn't clear that its per account.