The number of flexible drawdown investors could rise in 2013 when the top rate of tax is cut to 45%.
Hornbuckle Mitchell has said a number of advisers are waiting until April 2013 for clients with substantial savings to withdraw the whole fund.
Mary Stewart, sales and marketing director said: "The flexible drawdown process is really very simple, so we would urge advisers to explore this option with their clients. It could prove the perfect solution in today's tough economic environment."
The provider has also said advisers should consider partial flexible drawdown to gain greater flexibility as low GAD rates and high inflation squeeze pensions.
Stewart added: "Partial flexible drawdown offers the retiree more control and eliminates the limits imposed by GAD rates, which are currently at an all-time low. It simply means the investor can crystallise a portion of their pension fund, leaving the rest un-crystallised and thus ring-fenced from certain tax charges."
"Each time the client crystallises a part of their pension fund, they are entitled to take up to 25% of the amount as a tax-free lump sum. The tax-free cash can be used to make up part of the income stream, reducing tax liabilities. This can be particularly useful for pension investors who wish to keep their pension income below the next tax threshold."
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