Savers have taken £2.4bn worth of withdrawals in the first three months since pension freedoms came into effect, equivalent to £27m per day, according to the Association of British Insurers (ABI).
It said, between April and June, £1.3bn was withdrawn in cash lump sums, with an average payment size of £15,000. An additional £1.1bn was taken in a total of 264,000 drawdown payments, with an average payment of nearly £4,200.
Over the same period, the ABI said £1.3bn had been invested in 19,600 drawdown products, with an average fund size of nearly £68,000. Another £990m was invested in around 17,800 annuities, with an average fund of around £55,600.
Yvonne Braun, ABI's director for long term savings policy, said: "These figures are a testament to how well pension providers have adapted to the radical new approach to pensions which came into force on 6 April. They also show the popularity of the reforms.
"Working out how we pay for our growing life expectancy is a vital issue for the UK. The pension freedoms should be able to play an important role in helping retirees shape their income to suit their financial needs over the rest of their lives. However, people will only be able to benefit fully if they have been able to build up enough in savings during their working lives. Creating a stronger savings culture is therefore crucial."
The ABI also reported 45% of annuity holders switched providers while 55% of drawdown customers did so. Hargreaves Lansdown said the figures meant around half of investors were "failing to shop around" for the best deals, which could lead to "lower incomes, poorer investment choices and paying higher charges than they need to".
