Hargreaves Lansdown SIPP Fee Changes March 2026: What Drawdown Savers Need to Know

If you hold a self-invested personal pension (SIPP) or pension drawdown account with Hargreaves Lansdown (HL), a significant set of fee changes came into effect on 1 March 2026. Some HL clients will pay meaningfully less; others — particularly those with larger share-heavy portfolios — will pay considerably more.

This guide breaks down exactly what has changed, who wins and who loses, and what questions drawdown savers should be asking right now.

What Changed at Hargreaves Lansdown from 1 March 2026?

HL announced a comprehensive overhaul of its charges structure at the end of January 2026. The headline changes are:

• Annual account charge reduced: From 0.45% to 0.35% on SIPP and Stocks and Shares ISA accounts
• Share-holding cap raised: From £45 to £150 per year per account — a more than threefold increase
• Dealing charge reduced: From £11.95 to £6.95 per online trade (£3.95 after 20+ trades in a month)
• Fund dealing charge introduced: A new £1.95 per trade charge for buying or selling funds online
• Regular Investing remains free: No dealing charge when buying via monthly Direct Debit or dividend reinvestment

The new charges apply automatically — there is nothing HL clients need to do to activate them. Account charges for March 2026 will be collected on 1 April 2026.

Who Benefits from the HL Fee Changes?

Smaller SIPP Holders with Fund-Heavy Portfolios

The biggest winners are people with SIPP balances under £250,000 who hold their pension primarily in funds (unit trusts and OEICs) rather than individual shares, investment trusts, or ETFs.

For example, a drawdown saver with a £150,000 fund-based SIPP was previously paying £675 per year in account charges (0.45%). From March 2026, that falls to £525 (0.35%) — a saving of £150 annually.

For those who invest regularly by Direct Debit, the removal of the old fund dealing charge (there was no explicit charge before, but the new £1.95 charge is waived for regular investing) means ongoing investing habits are not disrupted.

Active Share Traders

The dealing charge reduction from £11.95 to £6.95 is significant for anyone who actively rebalances their drawdown portfolio in individual shares. A drawdown saver making 12 trades per year in shares previously paid £143.40 in dealing charges; under the new structure, that falls to £83.40.

Who Loses Out from the HL Fee Changes?

Large Share-Heavy SIPP Holders

The cap increase is the most controversial aspect of HL's overhaul. Previously, once your share-based holdings reached £100,000 in a SIPP, the annual account charge was capped at £45 per year. That cap was widely cited as one of HL's most compelling advantages for wealthier drawdown savers.

From 1 March 2026, the cap is £150 per account per year — more than three times higher. Investors' Chronicle described this as "the cost cat among the pigeons", noting that for many wealthy clients who chose HL specifically for this cap, the competitive rationale has weakened.

A drawdown saver with a £500,000 share-heavy SIPP who previously paid £45 now pays £150 — an extra £105 per year. Those with very large portfolios will feel the impact most keenly, particularly if they have multiple accounts at HL (each cap applies per account).

New Fund Traders

The introduction of a £1.95 charge to buy or sell funds online is new. Previously, fund trades at HL were free. For anyone who regularly switches between funds in their drawdown portfolio — switching from one multi-asset fund to another, for instance — this adds friction and cost over time.

The Impact on Pension Drawdown Specifically

Pension drawdown introduces some specific dynamics that make HL's fee structure particularly important to understand.

Income Withdrawals and Dealing Charges

When you take income from a pension drawdown account, you typically sell units in your investment portfolio to generate cash. Under the new structure, selling funds online now attracts a £1.95 charge each time. Drawdown savers who make regular monthly income withdrawals by selling fund units should factor this into their annual cost calculation.

For example, 12 monthly fund sales to fund drawdown income would now cost £23.40 per year in dealing charges — a cost that did not exist before. Many income-drawdown savers are accustomed to HL being effectively free to operate on a month-to-month basis; that is no longer the case for fund-heavy withdrawers.

Annual Rebalancing

A common drawdown strategy is to rebalance annually or semi-annually — selling assets that have grown and buying those that have underperformed to maintain target asset allocation. Under the old structure, this involved a share dealing charge of £11.95 per trade but free fund switching. Under the new structure, share deals cost £6.95 but fund rebalancing now costs £1.95 per trade.

For many balanced drawdown portfolios — a mix of equity funds, bond funds, and a small share allocation — the net impact on annual rebalancing costs is likely to be modest. But it is worth reviewing your rebalancing frequency.

Sustainable Withdrawal Rate Implications

Platform charges are a drag on sustainable withdrawal rates. The commonly referenced safe withdrawal rate for UK pension drawdown is around 3–4% of portfolio value. Platform fees come directly out of investment returns before any income is taken.

Reducing HL's annual platform charge from 0.45% to 0.35% on a £200,000 drawdown pot saves £200 per year. Over a 20-year drawdown period, compounded against investment growth, this is meaningful. However, for those whose costs have increased due to the cap change, the calculus runs in the other direction.

How Does HL Compare to Other SIPP Drawdown Platforms in 2026?

HL's fee changes have altered its competitive position. Here is a simplified comparison of the main platforms for pension drawdown, based on publicly available information as at March 2026:

Note: Platform charges change frequently. Always verify current fees directly with the platform before making any decisions.

The fee changes reinforce a pattern that has developed in the SIPP market: HL remains competitive for mid-sized portfolios (particularly those under £250,000 in a mix of funds and shares), but for very large share-heavy drawdown pots, flat-fee platforms like Interactive Investor or share-capped platforms like AJ Bell may offer better value.

Vanguard's SIPP remains the lowest-cost option for purely fund-based drawdown investors, but it does not offer individual shares, making it unsuitable for those who want to hold UK or international equities directly in drawdown.

Should You Switch Your SIPP from Hargreaves Lansdown?

Many people with HL SIPPs will be reviewing whether to stay. This is a sensible response, but switching pension drawdown providers is a significant decision that warrants careful thought.

When Switching May Make Sense

Transferring your SIPP to another platform may be worth exploring if:

• You have a large share-heavy portfolio and the tripled cap materially increases your annual cost
• You primarily want to hold low-cost index funds and do not need HL's breadth of investment options
• You make frequent fund switches within drawdown and the new £1.95 per fund deal adds significant annual friction
• A like-for-like cost comparison shows another platform is substantially cheaper over a 5–10 year horizon

When Switching May Not Make Sense

On the other hand, many people are better served by staying with HL:

• The overall annual charge reduction from 0.45% to 0.35% saves most fund-based investors money
• HL's customer service, platform reliability, and investment choice remain industry-leading for most clients
• Transferring a pension in drawdown can take weeks and involves paperwork — and occasionally triggers an unintended taxable event if drawdown designation is interrupted
• The saving from switching must outweigh the administrative hassle and potential short-term market exposure during transfer

How to Compare Platform Costs

Before making any decision, it is worth using the tools available. HL has its own comparison calculator at hl.co.uk/help/fees/calculator. Independent comparison sites such as Which? and Boring Money publish regular SIPP platform comparisons that can be used as a starting point.

When comparing, look at:

• Total annual platform charge at your current portfolio size
• Likely dealing costs based on your actual trading frequency
• Whether you hold predominantly funds, shares, ETFs, or a mix
• The cost projections over a 10–20 year drawdown period, not just year one

What If You Have Multiple SIPP Accounts?

Some drawdown savers hold multiple SIPPs — perhaps an older workplace SIPP from a previous employer alongside a personal SIPP at HL. The cap of £150 per year applies per account at HL, meaning if you have two HL SIPP accounts, you could pay up to £300 per year in share-holding caps.

Consolidating multiple pensions into a single account can reduce platform fees substantially in these cases, and is worth considering. Pension consolidation also simplifies retirement income planning and reduces the risk of losing track of smaller pension pots.

Key Actions to Consider

1. Review your HL account type: Do you primarily hold funds, shares, ETFs, or a mix? The impact of the changes differs significantly.
2. Use HL's fee calculator: Put in your actual figures at hl.co.uk/help/fees/calculator to see your personalised before and after charges.
3. Compare alternatives: Run a like-for-like cost comparison against AJ Bell, Interactive Investor, or Vanguard if your portfolio is large or share-heavy.
4. Review your dealing frequency: If you make frequent fund switches or monthly fund sales for income, calculate the annual cost of the new £1.95 dealing charge.
5. Consider consolidation: If you have multiple SIPPs, review whether consolidating reduces your total platform costs.
6. Do not rush: Platform fees matter, but switching a pension in drawdown is a significant decision. Take time to compare properly before transferring.

The Bigger Picture: Why Platform Fees Matter So Much in Drawdown

In accumulation — the years when you are building your pension — investment returns typically dwarf platform fees in significance. In drawdown, the dynamic changes. You are no longer adding to the pot; you are withdrawing from it. Every percentage point of annual cost has a direct, compounding effect on how long your money lasts.

On a £300,000 drawdown pot, the difference between a 0.35% and 0.45% annual platform charge is £300 per year. Over a 25-year retirement, compounded, that difference could represent several thousand pounds of additional withdrawable income. This is why annual fee reviews are a routine part of good drawdown management.

HL's March 2026 changes reinforce the value of this review habit — not as a reason to panic, but as a natural prompt to check that your platform continues to represent value for your specific portfolio.

Speak to a qualified financial adviser before making any decisions about switching pension providers, withdrawing pension income, or consolidating your pensions. A qualified adviser can help you assess the full cost and tax implications for your personal circumstances.