More than £1.8 billion has been withdrawn by pension savers in Britain in just the first two months of the new regulations.
During April and May, savers took more than £1 billion from their pension pots through 65,000 cash withdrawals.
The average amount taken out was £15,500, according to the Association of British Insurers.
Others have chosen to keep their pensions invested but to draw an income. These people made 170,000 withdrawals worth £8 million.
The new retirement freedoms began on 6 April means that people who retire are no longer roped into a poor deal by having to buy an annuity by a specific date no matter what the state of the UK economy.
Instead people over 55 can access their pension savings however they wish.
The general thrust is that 25% of the pension pot is free of tax, but the remaining 75% attracts tax.
But not all pension companies offer the full range which the Government opened up. Some people claim they have been charged high fees for withdrawals or for switching to another company or for financial advice if they want to access their money.
The ABI said the figures indicated that tens of thousands of people were accessing the pension freedoms.
"The data shows people with smaller pots tend to be cashing them out while those with larger pots tend to be buying a regular income product. It also highlights an increase in the number of people putting money into income drawdown products that can take advantage of the new freedoms," it noted.
