The number of retirees opting for income drawdown has more than trebled since the introduction of pension freedoms, new figures show.

Data analysed by Aegon has found that income drawdown has become the most popular option for retirees, with the number of people choosing the product increasing from 15% in 2013 to 46% in 2016.

However, Aegon’s research found that drawdown investors were sticking with familiar strategies and well-known fund choices, rather than choosing new solutions.

Aegon’s research compared investment choices made by its drawdown and non-drawdown platform investors and found they only differed slightly, despite drawdown investors having different demands on their money and generally shorter investment timeframes.

For those in drawdown, some 45% were using multi-asset strategies, with 18% were using equity growth. Bonds were the third most popular with 15% and equity income fourth with 12%.

This largely mirrors the strategies used by non-drawdown investors who also favour multi-asset strategies, followed by equity growth, bonds and equity income.

Aegon said: “Aegon’s analysis suggests that retired investors using multi-asset investments are reducing risk. Across a sample selection of six multi-asset fund ranges, most drawdown investors are in funds at risk levels three or four on Distribution Technology’s 1-10 risk scale, compared to most non-drawdown savers investing in risk profiles four or five.”

Nick Dixon, investment director at Aegon, said: “Drawdown’s popularity has rocketed since the pension freedoms, but retirees’ investment choices are still adjusting to the needs of those that choose to remain wedded to the markets in retirement. Drawdown investors are largely favouring tried and tested brands and investment strategies over newer, more tailored options.

“As a result, there is a mis-match between the long-term growth objectives of many of the strategies being used, and the near-term income needs of retirees who use them. Retirees are also now more exposed to market highs and lows than they have ever been.

“While most drawdown investors have benefited in the largely buoyant markets witnessed since the new rules came into force, the strategies used haven’t yet been tested by a dotcom or credit crunch style market shock. Our hope is that the market evolves further before one occurs.

“In an environment where there is not yet an accepted wisdom about the sorts of investment strategies that should be used in retirement, advisers have an opportunity to create real value by providing investment advice for an expanding list of drawdown clients."