But there are also downsides
Several of the issues cited by advisers, providers and clients are around the costs, complexity, investment risk and investment suitability concerns.
Complexity
Complexity and a lack of understanding of how drawdown works is a key concern. This is a point made by Mr Cameron, who states: "Comparing the offerings of different providers is more complex for flexi-access drawdown.
"Unlike annuities, it is not about comparing a rate, as there are many different features to take into account. As everyone will have different needs and preferences, it is not straightforward to choose.
"Aegon continues to recommend that individuals seek the support of a professional adviser."
In 2016, Aegon published an eight-point plan to help people pick a flexible drawdown product. This can be seen in the info box below.
Volatility and withdrawal risk
There are two potential problems when it comes to risk: a significant and prolonged market drop during decumulation, and the potential for an individual to pull too much income from the fund in the early years, leaving the pot to run dry in later life.
Both are risks that will affect the longevity of the individual's money.
Ian McGowan, head of fund proposition for Scottish Widows, comments: "Investment markets can be volatile and a significant loss early in drawdown can have a much bigger impact on a client’s ability to sustain their income than losses later in retirement."
"The fact the fund is still invested means it's still exposed to market risks and could fall in value or fail to sustain income levels when returns are negative," says Fiona Tait, technical director for Intelligent Pensions.
She says this is particularly important for clients withdrawing income, as "investment losses may have to be immediately realised before the market recovers."
Evidently, people do not want to get into retirement and suffer a huge investment loss akin to the 2008 financial crisis, just when they have stopped accumulating into a pension, as well as ceased to work and gain an income through their employment.
However, simply avoiding markets because of volatility is not likely to be an appropriate or reasonable option for those remaining invested in a drawdown product.
For this reason, Mr McGowan suggests: "Rather than take a reactionary approach to changing market events once the client is in decumulation, it’s actually better to be pro-active and plan how much volatility and investment risk a client is prepared to tolerate."
In a 2017 study from the University of York, the authors suggested the optimal amount that could be drawn down was 4 per cent.
