Investing in drawdown – three options to consider – Hargreaves Lansdown

Investing in drawdown – three options to consider

No news or research item is a personal recommendation to deal. All investments can fall as well as rise in value so you could get back less than you invest.

No recommendation

No news or research item is a personal recommendation to deal. All investments can fall as well as rise in value so you could get back less than you invest.

For those who wish to keep control of their pension, drawdown offers the potential to combat inflation and increase value through investment growth.

Although as with any investment, the value can fall and rise, so there is the risk you could get back less than you invest. With this in mind, choosing the right investments can seem daunting, but help is available.

Drawdown investment ideas

However you decide to invest, reviewing and monitoring your investments on a regular basis is essential. Below we explain three options for investing in drawdown with us.

Option 1 – choose your own individual investments

This is the most hands on approach and gives you the most control. You can choose any combination of investments which you believe suit your requirements.

Having a diversified spread of investments should be something to consider. While investment risk can’t be eliminated altogether, this can be one way to reduce its impact. For example, you could choose a range of investments across a variety of asset classes from around the world, and in various industries.

If you’re looking for investment ideas, or want to learn more about investment strategies for generating income, a good starting point could be our Drawdown investment ideas and strategies factsheet.

Ideas for investing a drawdown plan Includes strategies for drawing income and reveals the fund managers we regard highly. Download our free factsheet

Option 2 – choose a portfolio managed by our experts

If you don’t have the time to spend picking individual investments, or you’d rather leave it to the professionals, there are alternatives. For example, ready-made investing is available through our Portfolio+ service.

First you choose your goal – you can invest for income or growth. You then have the choice of three ready-made portfolios based on your risk appetite – conservative, balanced or adventurous. They aren’t specifically designed for drawdown but could be a good place to start.

Once you’ve invested in your chosen portfolio, our experts will rebalance the investments for you twice a year (to help keep the portfolio on its original track).

They aren’t a personal recommendation so you still need to review your investments regularly to make sure they remain suitable for your circumstances. Remember the value of the portfolio, and any income it produces, will go up and down. So there is still the risk of loss.

Find out more about our Portfolio+ service

Option 3 – take personalised advice

If you are comfortable with the risks associated with drawdown, but don’t feel you have the time or expertise to choose and review the investments yourself, you could consider taking personal advice.

You can choose the extent of advice that’s most suitable for you – from full management of your drawdown plan to one-off advice about initial investments and your strategy for income.

You can also choose to receive advice over the phone or face-to-face, whichever you prefer.

If you’d like to talk through the options available, as well as the costs involved, just call our advisory helpdesk on 0117 317 1690. They’ll be happy to answer your questions, with no obligation.

Find out more about taking advice

What help is available?

This article, like our factsheets, is not personal advice. Our aim is to help you make the most of your pension in retirement, and we hope our wide range of investment options will help.

What you do with your pension is an important decision. We strongly recommend you understand your options and check your chosen option is right for your circumstances. Take advice or guidance if you are unsure.

The government provides a free and impartial service to help you understand your retirement options – more on Pension Wise.

We offer a range of information and support to help you plan your own finances. If you’d like to find out more about our service or discuss the options for investing in drawdown, please call our experienced Helpdesk on 0117 980 9940 (Monday to Thursday 8am – 7pm, Friday 8am – 6pm and Saturday 9:30am – 12:30pm). You will speak to a real person who will answer your questions in plain English.

Frequently asked questions about drawdown

Drawdown investment ideas and strategies factsheet

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