In recent weeks, Suffolk Life has seen a 250% increase - a combination of current Suffolk Life investors crystallising at least part of their plans and investors choosing to transfer their pensions in from other providers.
The move has been prompted by investors and their advisers looking to keep their options open when it comes to future flexibility over contributions. Investors who use capped drawdown plans are able to contribute up to £40,000 per annum to money purchase pensions, as well as retaining the chance to carry forward unused annual allowance from previous tax years.
However, analysis of Suffolk Life's own book indicates that only around 1% of drawdown investors actually continue to contribute after starting to take benefits from their plan. Furthermore, only a handful of these investors currently contribute more than £10,000 per annum (the maximum contribution permitted under the new money purchase annual allowance rules, which apply to flexi-access drawdown).

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Paul Evans, pension technical manager, said: "The increased numbers of capped drawdown applications are not surprising as advisers have shown great interest during the past few months in how investors may benefit from capped drawdown.
"Capped drawdown may benefit investors who need some of their fund now, for example to start a new business, but intend to put money back into their pension in the future. However, advisers should consider whether the benefits of additional flexibility outweigh the review costs and income limitations for their clients."
Suffolk Life looks after 20,000 self-invested plans with £6 billion of assets under administration and is part of the Legal & General Group.