The Hargreaves Lansdown SIPP may have come up if you have been looking at your retirement savings options.

Hargreaves Lansdown (HL) manages over 520,000 SIPP accounts, making it one of the UK’s leading providers in the pension industry. 

Why is this important?

Well, if you are dreaming of a comfortable retirement where you and your partner can enjoy a three-week holiday and continue running two cars, you are going to need at least £54,000 a year.¹

The sobering reality is that only 23% of people not yet retired say they have a good idea of how much income they would need in retirement.²

So, looking into Self-Invested Personal Pensions (SIPPs) may help you plan your retirement effectively.

Get ready to explore an array of valuable insights and actionable takeaways put together by our EveryInvestor team that could help you navigate your retirement savings journey more easily. 

All our content is checked for accuracy and compliance before publication to ensure that we are bringing you only the most relevant and trustworthy information.

What Is a Hargreaves Lansdown SIPP?

A Hargreaves Lansdown SIPP, or Self-Invested Personal Pension, is a retirement savings account offered by Hargreaves Lansdown, a leading investment platform in the UK.

It allows individuals to take control of their pension investments by providing a wide range of investment options, such as stocks, bonds, funds, and more.

With a Hargreaves Lansdown SIPP, investors can benefit from tax advantages, flexibility, and the ability to choose how their pension is invested.

This SIPP also offers online tools and resources to help individuals make informed investment decisions.

With Hargreaves Lansdown’s reputation and expertise in the investment industry, investors can trust that their pension is in capable hands.

A unique feature of the Hargreaves Lansdown SIPP is its extensive investment choices, making it suitable for investors with different risk appetites and investment goals.

Whether you prefer a hands-on approach or want to rely on expert guidance, Hargreaves Lansdown offers a range of investment options and services to cater to your needs.

Additionally, the platform provides access to a wealth of research and analysis, allowing investors to stay informed and make well-informed decisions.

With Hargreaves Lansdown’s SIPP, individuals have the opportunity to grow their pension savings in a way that aligns with their personal investment preferences and goals, all backed by a trusted and respected financial institution.

Who Are Hargreaves Lansdown?

Hargreaves Lansdown plc, based in Bristol, is a FTSE100 financial service company that offers funds, shares, and related products to 1,7 million clients in the UK.³

Brief History & Overview

The company famously started trading out of a bedroom on 1 July 1981 and in those days, the firm chiefly offered insights on unit trusts and strategies for tax planning to its clientele. 

Over the years, it has significantly expanded its services and now offers a wide range of financial products to retail investors.

In 2003, the company made a significant leap by becoming the first direct-to-investor fund supermarket to offer Self-Invested Personal Pensions (SIPPs). 

In 2007, Hargreaves Lansdown (HL) reached a milestone when its SIPP service amassed over £1 billion in assets for the first time, which rose to £1,7 billion by the end of that year.⁴

Key Players in Hargreaves Lansdown’s Growth

The company’s founders, Peter Hargreaves and Stephen Lansdown, were the primary drivers behind Hargreaves Lansdown’s growth. 

Stephen Lansdown passed the baton of chairman of the board to Mike Evans, a non-executive director, in 2009.

The following year, Ian Gorham replaced Peter Hargreaves as chief executive, while Peter continued on the board as an executive director. 

In 2012, Stephen Lansdown stepped down as a board member and employee in 2012, and Peter Hargreaves left the board of directors three years later. 

Chris Hill took over as chief executive from Ian Gorham in 2017, in the same year Philip Johnson was appointed as chief financial officer.⁵

Current Market Position

Hargreaves Lansdown holds a top spot in the market with an impressive number of more than 520,000 self-invested personal pension (SIPP) accounts at the end of 2022.⁶

This suggests that the company has maintained robust growth and continues to be a leading choice for retail investors in the UK. 

How Can You Start Exploring Hargreaves Lansdown’s SIPP?

Exploring Hargreaves Lansdown’s SIPP provider starts with looking at its key features and benefits and costs and charges.

Key Features & Benefits

Key features and benefits of this SIPP include flexible contributions, investment freedom, and a range of options on how to take your pension income.

A closer look:

• You can initiate monthly debits from just £25, with the flexibility to pause or cancel. 
• You have total control over your investments, whether you make your own choices or use one of the HL portfolios. 
• Upon retirement, various options let you customise your income according to your preferences.⁷

Costs & Charges

The costs and charges are transparent, with no set-up fees and a tiered fee structure.⁸

What does this mean?

• The maximum annual charge for holding investments in an HL SIPP is 0,45%.
• The tiered fee structure means your fee decreases as the value of your holdings increases, with no charge for the portion of your pension pot over £2 million.
• There is a charge of 0,45% (capped at £200 per year) for investments including UK and overseas shares, investment trusts, exchange-traded funds (ETFs), venture capital trusts (VCTs), gilts, and bonds.⁹

Remember

You need to keep up to date with fee structures, as they can change over time.

Understanding HL SIPP Fees in 2024

The fees associated with an HL SIPP are crucial to consider, as they can impact the overall value of your investments.

HL SIPP charges a 0.45% annual fee on the first £250,000 of funds held in your account, with reduced fees for higher amounts.

There are also separate charges for trading shares and funds, which vary depending on your investment choices.

These fees are competitive when compared to other providers, but it is important to be aware of them so you can plan your investments accordingly.

Keeping your fees low while maximising returns should be a key part of your strategy, and understanding these costs will help you make informed decisions.

How to Start Comparing Hargreaves Lansdown’s SIPP With Other Providers’ SIPPs

Comparing Hargreaves Lansdown’s SIPP with other providers’ SIPPs may give you an idea of which option might suit your needs best.

This kind of comparison should include several factors such as fees, range of investment options, platform usability, and customer service.

AJ Bell

AJ Bell’s SIPP offers a wide range of investments and charges lower custody fees compared to Hargreaves Lansdown for portfolios over £250,000. 

However, its trading fees for shares, including ETFs and ITs, are higher. 

The platform is user-friendly and offers good customer service.

Curtis Banks

Curtis Banks primarily specialises in SIPPs, with a focus on property investments (courtesy of its impressive commercial property portfolios).

This product targets the big spenders who aren’t afraid of taking risks with their investments. 

The fee structure is a tad more complex and their online platform might not be as comprehensive as Hargreaves Lansdown’s.

How Do You Start Investing With Hargreaves Lansdown’s SIPP Product?

Investing with Hargreaves Lansdown’s SIPP product provides you with the control and flexibility to manage your retirement savings according to your financial goals and risk tolerance. 

Types of Investments Available

The types of investments available span over 2,500 funds, UK and overseas shares, and investment trusts.¹¹

Better still, Hargreaves Lansdown makes your job of building your pension pot simpler with its Wealth Shortlist funds and four ready-made portfolio funds, which balance risk and potential returns. 

Regardless of how much risk you are willing to take, all investments are subject to potential value fluctuations and should be considered for long-term holding, ideally over five years.¹²

Flexibility & Withdrawal Options

Flexible withdrawal options include taking a flexible income, taking a lump sum, or buying an annuity.¹³ 

Tax Implications

Assuming you are a UK resident aged below 75, you generally have the option to contribute an amount equivalent to your yearly earnings to your SIPP, up to a maximum of £60,000 across all your pensions, and you can enjoy tax relief on these contributions.¹⁴ 

The exact figure could differ based on your situation: for example, if you have unused contributions from past tax years, if your earnings are considerably high, or if you’ve opted for flexible access to your pension.

Speak to a financial advisor if you are unsure about the best approach for your situation.

Who Is Hargreaves Lansdown’s SIPP Best Suited to?

Hargreaves Lansdown’s SIPP is best suited to a wide range of individuals, from novice investors to experts, and even retirees, depending on their specific needs and investment goals.

Novice Investors

If you are an investment newbie, Hargreaves Lansdown’s SIPP can provide an accessible platform to begin building retirement savings. 

The low starting monthly investment of £25, the wide range of investment options, and the availability of ready-made portfolios managed by experts make it a potentially good choice for beginners. 

However, it is important for novice investors to be aware of the risks involved in investing and to consider seeking advice if they are unsure about their investment decisions.

Expert Investors

For expert investors, Hargreaves Lansdown’s SIPP offers a flexible platform to manage their retirement savings. 

The freedom to manage investments and adapt the strategy over time can be attractive to those comfortable with making their own investment decisions.

Retirees

For retirees or those approaching retirement, Hargreaves Lansdown’s SIPP provides flexibility in terms of withdrawal options. 

Opening a Hargreaves Lansdown SIPP

Opening a Hargreaves Lansdown SIPP typically involves an online application process through the company’s website. 

You will need to provide your personal information, your National Insurance number, and details about your employment and income.

Who Is Eligible?

All UK residents under the age of 75 are eligible.

What Is the Process?

The process of setting up an HL SIPP is straightforward.

Here are the steps:

• Navigate to the SIPP section on the HL website.
• Click on the option to open a new SIPP.
• Fill in the online application form with your personal, employment, and financial details.
• Decide how much you want to contribute and set up your payments. You may also transfer your existing pension into your new plan.¹⁵
• Choose your investments, either by picking individual investments yourself or by selecting one of the ready-made portfolios offered by Hargreaves Lansdown.

Hargreaves Lansdown Pension Review: Beyond SIPPs

Hargreaves Lansdown offers more than just SIPPs when it comes to retirement planning.

They also provide a range of pension products, such as workplace pensions and stakeholder pensions, which may suit different financial needs.

These options are designed to cater to both individual investors and employers looking to provide pension schemes for their employees.

By considering Hargreaves Lansdown’s wider pension offerings, you can compare which product best fits your retirement goals.

Whether you are looking for flexibility with a SIPP or a simpler workplace pension, HL provides solutions to help you secure your financial future.

What Are the Charges for Hargreaves Lansdown’s SIPP Product?

The charges for Hargreaves Lansdown’s SIPP product are laid out in detail above, but here is a quick recap.

There is no set-up fee, and administration costs start at 0,45% for portfolios up to £250,000 and slide right down to zero for the portion of your investment over £2 million.

How Can You Start Navigating Hargreaves Lansdown’s Digital Platform?

Navigating Hargreaves Lansdown’s digital platform is relatively easy, thanks to user-friendly interfaces and a wide array of tools and resources to aid investors in managing their SIPPs.

HL’s digital platforms were recognised by the City of London Wealth Management Awards (Colwma) in 2023 for offering the ‘Best Online/Mobile Access’.¹⁶

User Interface & Experience

The user interface and experience are designed to be intuitive and easy to navigate. 

Tools & Resources Available

Tools and resources for investors include watchlists for tracking investments and the ability to create virtual portfolios, learning platforms, and access to an advisory service.¹⁷

Mobile App Review

The Hargreaves Lansdown app, dubbed ‘Your Pension in Your Pocket’, provides fast and secure access to your account. 

It supports biometric security features like fingerprint login and Face ID on iPhone for easy access. 

The app allows you to view your investment performance at a glance, check if your pension is on track, and place deals even when you’re on the move.

Hargreaves Lansdown’s mobile app was named the ‘Best Investment App’ by Boring Money Best Buys in 2023.¹⁸

How Can I Contact Customer Service & Support?

Customer service and support at HL have been recognised with several awards, including the Times Money Mentor 2022 award for customer experience.¹⁹

Contact Channels

Contact channels available to customers include a help and support centre for queries ranging from how to reset your login details to how to access tax information.

You can contact Hargreaves Lansdown online or by phone, email, and traditional post, six days a week.

Response Times

Response times align with Hargreaves Lansdown’s commitment to ‘going the extra mile’, suggesting that they strive to provide timely and efficient responses to customer queries.

In terms of complaints, Hargreaves Lansdown actively welcomes feedback and takes complaints seriously. 

The firm discloses the number of complaints it has received and closed over a specific period, as well as the percentage resolved within specific timeframes, the percentage upheld, and the main causes of the complaints. 

This transparency in handling and disclosing complaints indicates their commitment to improving their services based on client feedback.

Client Reviews & Testimonials

Based on 8,084 reviews, Hargreaves Lansdown has earned a ‘Great’ rating and a TrustScore of 4,1 out of 5.²⁰ 

This score suggests a high level of customer satisfaction with the services provided. 

However, as with all customer reviews, experiences can vary, and prospective clients should consider a range of factors when deciding if Hargreaves Lansdown is the right choice for their investment needs.

What is Regulatory Compliance & Protection?

Hargreaves Lansdown subscribes to all the regulatory compliance and protection protocols required by financial institutions.

Regulation

HL is regulated by the Financial Conduct Authority (FCA),²¹ ensuring its practices align with the standards of integrity, fairness, and customer treatment expected in the financial industry.

Financial Services Compensation Scheme (FSCS) Protection

HL is covered by the Financial Services Compensation Scheme (FSCS).²²

This means that customers may be entitled to compensation from the scheme in the unlikely event that Hargreaves Lansdown goes bust.

Data Security Measures

Hargreaves Lansdown uses a skilled team and advanced tools for robust data security, constantly updating their knowledge of cyber threats. 

The company offers a secure, user-friendly app and provides guidance on dealing with common security threats and potential suspicious activities.²³

How Can I Start Evaluating Hargreaves Lansdown’s Place in the SIPP Market?

Evaluating Hargreaves Lansdown’s place in the SIPP market boils down to taking a look at its strengths and weaknesses, future predictions and giving some final thoughts.

Strengths & Weaknesses

The strengths and weaknesses of Hargreaves Lansdown’s SIPP offering range from brilliant customer services with all the digital bells and whistles to charges that may prejudice smaller investors.

Strengths:

• An award-winning digital platform, with easy access to resources and tools that facilitate investment management. 
• A large pool of investment options including UK and overseas shares, and investment trusts, among others.
• Flexible contribution and withdrawal options.

Weaknesses:

• The fee structure could potentially be higher than that of some other providers, particularly for investors with smaller portfolios. 
• The firm does not offer personal investment advice unless specifically requested (and then for a fee).
• As with all investments, there is a risk of losing value and capital.

Predictions for Future Developments

Given the increasing digitisation and competitiveness of the financial sector, Hargreaves Lansdown is likely to continue enhancing its digital platform and mobile app. 

This may include adding more advanced tools and features to better serve their clients.

As the interest in sustainable and socially responsible investing grows, HL might also expand its offerings in this area.

For More Sustainable Investments: Organon ESG SIPPs

Final Thoughts & Recommendations

Hargreaves Lansdown offers a robust and comprehensive SIPP product. 

Its digital platform, a broad range of investment choices, and extensive customer support make it an excellent choice for both novice and experienced investors. 

However, potential clients should consider their individual needs, investment goals, and fee structure before making a decision.

Common Questions

The Hargreaves Lansdown SIPP: In Short

The Hargreaves Lansdown SIPP offers a high level of control over retirement investments, with the flexibility of setting up minimal monthly contributions and the ability to pause or stop them as needed. 

Its diverse investment choices, including ready-made portfolios, cater to both novice and experienced investors. 

Moreover, the firm provides versatile options for accessing funds during retirement, ensuring personalised financial planning. 

Choosing the Hargreaves Lansdown SIPP could be a strategic move for those looking for adaptability and control over their retirement savings.