Retirement Options through HL
Thank you for considering Hargreaves Lansdown (HL) for your retirement needs
HL is the UK’s number one platform for private investors. For over 40 years, we've helped clients save time, tax and money on their investments. We’re trusted with more than £120bn by over 1.8 million clients. We’re here to help you explore the retirement options available to you through HL.
Why use HL’s retirement service?
- Retirement Specialists available by phone and email
- Access to key retirement options including flexible access
- Live annuity quotes from all UK annuity providers on the open market
Complete the form below and a Retirement Specialist will call at your preferred time to answer your questions and discuss your options.
Important information: What you do with your pension is an important decision that you might not be able to change. You should check you're making the right decision for your circumstances and that you understand all your options and their risks. The information on our website and your conversation with a Retirement Specialist isn’t personal advice, but we can offer financial advice if you'd like it – please let your Retirement Specialist know if this is of interest.
The government's free and impartial Pension Wise service can help those aged 50 or over understand what type of pension they have, how to access their pension savings and the potential tax implications of each option.
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Compare your retirement options:
There are three main ways you can access your pension: by getting an annuity, moving into drawdown or by taking lump sums. Or you can mix and match, which could help you find the right balance of security and flexibility. Please remember that money in your pension can’t usually be accessed until age 55 (rising to 57 in 2028). Tax rules can change and benefits depend on personal circumstances.
ANNUITIES
Overview: Swap money in your pensions for a guaranteed income for the rest of your life.
Tax: You can usually take up to 25% tax-free cash at the start. Your income is taxable.
BENEFITS
- Your income is guaranteed for life. This is true no matter how long you live or what the stock markets are doing.
- You can choose options so your income increases. This means your buying power could keep up with inflation.
- Your income could continue after you die if you've chosen certain options when you get quotes and apply.
RISKS
- You can't change your options if your circumstances change.
- You can't cash in your annuity.
- Annuity rates might rise in the future, but you won't benefit from this if your annuity is already being paid.
DRAWDOWN
Overview: Keep your pension invested. Take the income you want when you want.
Tax: You can usually take up to 25% tax-free cash at the start. Any income you withdraw is taxable.
BENEFITS
- Withdraw what you want, when you want. So you keep your options open if your circumstances change.
- Potentially beat inflation with returns from your investments. You could maintain your buying power as prices rise.
- Pass on your money - when you die this can normally be paid as a lump sum or as income.
RISKS
- You could run out of money if you withdraw too much too soon, your investments don't perform as you'd hoped or you live longer than expected.
- Income isn't secure, it could fall or even stop completely.
- It's possible you'll get back less than you originally invested, as all investments can fall as well as rise in value.
LUMP SUMS
Overview: Keep your pension invested. Take the lump sums you want, when you want.
Tax: Usually 25% of each withdrawal is tax free, and the rest is taxable.
BENEFITS
- Withdraw what you want, when you want. So you keep your options open if your circumstances change.
- Potentially beat inflation with returns from your investments. You could maintain your buying power as prices rise.
- Pass on your money - when you die this can normally be paid as a lump sum or as income.
RISKS
- You could run out of money if you withdraw too much too soon, your investments don't perform as you'd hoped or you live longer than expected.
- Income isn't secure, it could fall or even stop completely.
- It's possible you'll get back less than you originally invested, as all investments can fall as well as rise in value.
The bigger picture
Consolidating your pensions is a good way to take control of your pension savings - particularly as you approach retirement.
Shoud I combine my pensions?
It will make it easier to see exactly how your investments are performing, and if you're on track to reach your retirement goals. But remember transferring isn’t right for everybody. If you’re thinking about combining your pensions, check you won't lose valuable guarantees or benefits or have to pay excessive exit fees.