How to withdraw money from a Hargreaves Lansdown SIPP

To withdraw from a Hargreaves Lansdown SIPP, you move it into drawdown, applying online or by post, or request a lump sum (UFPLS) by phone or post.

HL describes the government’s Pension Wise as “a free government service for people aged 50 or over with a UK personal or workplace pension”; see what Pension Wise offers before you commit, because HL warns that a pension choice may be one you cannot change. Pots, tax and health vary, so a qualified FCA-authorised adviser can talk the options over by phone once this page’s short form has your number.

The routes HL offers for taking money out

HL’s retirement-options page names three ways to use a pension: an annuity, drawdown and lump sums. With drawdown, HL says you can “normally withdraw up to 25% tax free, while keeping the rest invested, and make further taxable withdrawals when you need to.” With an uncrystallised funds pension lump sum (UFPLS), you take the money in one go or a bit at a time. An annuity is a separate purchase, covered in Hargreaves Lansdown annuity rates and annuity or drawdown.

Tax and allowance differences between the two are in flexi-access drawdown against UFPLS.

Who can apply, and from what age

HL’s drawdown FAQ says: “Usually, you need to be 55 before you can access the money in your pension (this is rising to 57 from 2028).” It adds that the age might be lower for someone unable to work because of health or terminally ill.

HL says you can apply online only if you are moving an existing HL SIPP into drawdown, are over 55 and are taking the maximum tax-free cash you are allowed, normally 25%. If the SIPP holds the Ready-Made Pension Plan, apply by post. HL’s lump sum application can also transfer a pension in at the same time; for moving a pension, see how to transfer a pension for the steps. A UFPLS cannot be taken from a defined benefit pension such as a final salary scheme, HL says.

Applying for drawdown online, step by step

You log in and apply from your account. HL lists four documents to read first: the Drawdown Key Features and Important Information, the HL Service Key Features and Terms and Conditions, the Drawdown Declaration and “Accessing your pension - important information”. The application asks risk questions; HL says you must answer them again if you do not go ahead within six months or your circumstances change.

HL tells applicants to sort out four things first:

• Cash for the tax-free payment. HL can only pay you if the SIPP holds enough uninvested cash to cover it.
• Direct Debits and employer payments. If you are moving the whole SIPP across and want these to stop, cancel them before applying, or the SIPP stays open next to the drawdown account.
• Transfers in progress. HL waits for them to finish before it moves you into drawdown.
• Your investments. Everything stays invested, and changing holdings during the process delays the application.

Moving into drawdown costs nothing in itself, apart from the usual dealing charges where they apply, and the cost of holding the account is in Hargreaves Lansdown SIPP fees.

Applying by post or phone

If you cannot or would rather not apply online, HL describes three steps. First, call its Pensions Helpdesk on 0117 980 9926 to go through the options and answer risk questions by phone. Second, request a personal illustration, which shows how withdrawals could affect how long the pension lasts, and an application form. Third, return the completed form.

A partial move is allowed: HL says you can move a bit in at a time, normally taking up to 25% of each portion as tax-free cash. The amount to draw each year has its own guide, how much to take from drawdown.

Taking a lump sum (UFPLS) from the SIPP

HL sets out three steps for a lump sum. You get a personal illustration; then you call the helpdesk to complete a risk questionnaire, or return the questions by post; then HL sends the application by secure message or post and you complete and return it. HL says there is “no set up, transfer or withdrawal charge” in its SIPP.

On tax, HL says usually 25% of each UFPLS withdrawal is tax free (up to £268,275) and the rest is taxed as income. It also says an emergency tax code is likely on the first withdrawal, so more or less tax than you owe may be taken until HMRC sends the right code. GOV.UK also gives £268,275 as the most you can take tax free; wider rules are in UFPLS explained and tax-free lump sums.

HL warns that once you flexibly access a pension, including by an UFPLS, the £60,000 annual allowance falls to £10,000 per tax year for future money purchase contributions. For drawdown it says tax-free cash on its own does not have that effect, while taking taxable income does.

How long it takes, and when income arrives

HL says it aims to process a drawdown application “within 15 working days from when we receive it”, moving the holdings into the drawdown account and paying the tax-free cash afterwards. When we read HL’s page on 26 October 2026, it said demand had made this slower than usual. HL has let clients cancel a first drawdown application within 30 days, but said on that date that, after HMRC indicated tax-free cash cannot be returned, it is “currently unable to process any cancellation requests”. Other providers’ timings are in how long cashing in takes.

Once you are in drawdown, HL says income instructions can be given by phone, secure message or letter, and one-off payments through your online account. They must be received by the 17th of the month to take effect that month, and payment should arrive on the 28th, or the previous working day. Charges come out of available cash first, ahead of a pending income withdrawal. If cash is short you are still paid what is held in settled cash, as long as that is at least £50.

Before you ask HL to pay out

Can I withdraw money from my HL SIPP online?

Yes, for drawdown if you meet HL’s online conditions above. For a lump sum, HL’s steps are an illustration, risk questions by phone or post, then an application it sends by secure message or post.

Can I take money out of my HL SIPP before 55?

HL says it is usually 55 at the earliest, and warns of a penalty if you try sooner, with some circumstances allowing early access without one. Early access is covered in early withdrawal penalties.

Do I have to move the whole SIPP into drawdown?

No. HL says you can move a portion at a time, with up to 25% of each portion paid as tax-free cash, and staging is explained in taking your pension in stages.

Can I set up regular income when I apply online?

Not as part of the online application, HL says; once you have applied you can ask for a one-off payment from your online drawdown account, or give an income instruction by secure message, phone or signed letter. Investment values can fall as well as rise, so you may get back less than you put in. Weighing HL against your other income is easier by phone; the quick form here arranges a no-fee call with an FCA-authorised adviser.

Sources, all read 26 October 2026 and undated by HL: Hargreaves Lansdown, pension drawdown; apply for drawdown online; apply by post; drawdown FAQs; UFPLS; SIPP; and GOV.UK, lump sum allowance.