Hargreaves Lansdown unveils new drawdown plan

The New Drawdown, which the company describes as "radical", has no set-up or income withdrawal charges.

It said the plan would offer online and telephone-based support with the option of full regulated advice if required, as well as a suite of financial planning tools to help investors.
 
There have been widespread concerns as to whether policymakers and the pensions industry would be ready in time for the 6th April deadline.

Hargreaves Lansdown has already received over 175,000 requests for information relating to the new regime. Annuity sales have halved in the year since the 2014 Budget, meaning there is estimated to be between 200,000 and 400,000 people waiting to take advantage of the new freedoms in the first weeks and months after 6 April.

Tom McPhail, Head of Pensions Research, Hargreaves Lansdown:

“We have made this new drawdown accessible by stripping out any upfront charges and developing a suite of information and planning tools to help investors make the most of their retirement savings. This is what the government’s pension freedom revolution is all about; giving investors the tools and information to take control of and responsibility for their own retirement income, as well as financial advice if they need it.
 
“The Financial Conduct Authority and the Government are beavering away to produce the final rules and regulations which will apply from 6th April. Given the uncertainty over whether the pensions industry would be ready in time, we think investors will be reassured to see this first product launch in good time for the new pension freedoms. Drawing on our experience as the UK’s leading direct to consumer drawdown provider and annuity broker, we have been able to launch our new drawdown product in plenty of time for investors to register their interest ahead of 6th April.”