The firm’s workplace pensions business has seen 1,152 people over the age of 55 decide to exercise these new pension freedoms since 6 April, representing total pension assets of £13.4m.

The data shows that 83% of people have taken all of their pension savings in cash (57% of assets overall), while 3% have opted for BlackRock’s new income drawdown product, with nearly £1 in every 4 (23% of assets) being extracted this way. Just 14% of retirees have purchased a traditional annuity product (20% of assets).

Many retirees have sought help with their decision with 34% seeking formal financial advice, and 61% using the Government’s PensionWise service. 21% have sought counsel from both.

‘Dash for cash’

Of the 83 per cent who have taken their entire pot in cash, 20% have taken an uncrystallised funds pension lump sum and 63 per cent have taken a small pot, less than £10,000.

Drawdown appeal for those with larger pots

For those with substantial retirement savings and investments, drawdown has attracted some interest. One pound in every four is now flowing into BlackRock’s drawdown offering.

“The early signs indicate the emergence of a new norm,” said Paul Bucksey, head of BlackRock’s UK Defined Contribution business.

“The pension freedoms have changed the way people are choosing to access their retirement savings – and for the better in our view, as people are using them to take more control of their finances.”

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