Platforms & Pensions
Hargreaves Lansdown
Hargreaves Lansdown has introduced a great new retirement calculator , but assumptions as to whether you will remain invested or buy an annuity are not obvious , and these can have an enormous impact on the potential outcome . A closer inspection reveals the calculator is based on annuities . I ’ m surprised Hargreaves Lansdown doesn ’ t model the amount you can draw down while remaining invested , as sustainable withdrawal rates are much higher with this option . It also has a huge range of investment choice and plenty of educational content , which is simple to read without being patronising . Access to its financial advisers is useful given the complex rules and potential for costly mistakes as you approach retirement . Drawdown options and annuitisation make Hargreaves Lansdown the most comprehensive platform for retirement , while cashback incentives of up to £ 500 encourage pension consolidation .
So , a big thumbs-up barring the elephant in the room of a 0.45 % platform fee . At the height of the value of your portfolio ( around retirement ), you will be paying top dollar for its service : £ 1,125 per annum on a £ 250,000 portfolio . A lower percentage is charged on amounts over £ 250,000 .
Cost per annum *: £ 1,125
* Cost per annum is based on a male aged 45 , with £ 250,000 invested as a lump sum , then £ 12,000 per annum invested in a SIPP and £ 5,000 in an ISA . Charges are shown for year one . Source : Comparetheplatform . com unless specified .
Issue 85 - June 2022 / 57 /