Advisers have seen drawdown clients take stock of recent market falls caused by Covid-19 and cut their income levels to sustain their pension pots, according to Prudential.

A recent poll by Prudential UK found that out of 170 advisers, 56 per cent reported that half of their clients in drawdown had chosen to cut their income levels as a result of the market shock.

Advisers also flagged that an overwhelming majority (98 per cent) of their clients, who are about to or are already drawing an income from their pension fund, are concerned about the implications of the recent market falls.

Tim Morris, an independent financial adviser at Russell & Co, said he had been having conversations about reducing some client’s drawdown income throughout lockdown, which resulted in “most deferring an income payment”.

He said: “As the market recovery happened much quicker than anticipated, most have been able to draw their anticipated income for the rest of the year.

“Due to keeping sufficient cash reserves for six months’ living costs, they were able to ride out the market fall and subsequent recovery without depleting their capital.

“Now we just need to avoid the second wave to keep 2021’s spending on track.”

Colin Simmons, business development manager at Prudential, said: “Since the introduction of pensions freedoms, and until recently, markets were only going one way and that was up. This may have given those taking – what is now the most popular retirement income option – drawdown a sense of false security.

“And while sustainability of income as always been a challenge for advisers and clients alike, it has become heightened since the market falls in March.”