Experts have warned of an "unsettling trend" among pensioners which could see them exhaust their pension in retirement.
Analysis of Financial Conduct Authority data found a nearly 30 per cent rise in the number of pensioners withdrawing more than 6 per cent of their pension's total value in the most recent financial year.
More than 280,000 pensioners had a withdrawal rate of 6 per cent or higher, the analysis by Hargreaves Lansdowne found. That included more than 220,000 pension pots with a withdrawal rate of more than 8 per cent.
In total, pension withdrawals rose by 20 per cent over the same period, with pensioners cashing out more than £52bn.
Experts warned that continually withdrawing from a pension of £100,000 at a rate of 8 per cent every year would see someone's pension dry up by the time they are 82.
Helen Morrissey, head of retirement analysis at Hargreaves Lansdown, said: "Managing an income drawdown pot throughout retirement can be challenging.
"We don't know how long we are going to live and with recent data showing there are over one million people over the age of 90 and almost 15,000 centenarians in England and Wales the reality is it's likely to be a multi-decade endeavour.
"Understanding how much you can take to enjoy your retirement while making sure you don't run out of money can be tricky with recent FCA Retirement Income Market data showing some unsettling trends."
She added: "Of course, there will be times when you need to take more money from your pension - for instance, if you are planning a big overseas trip. However, if you are plundering your pot long-term then you face the very real threat of running out of money."
Based on a £100,000 pension pot with investment growth of 5 per cent, Ms Morrisey estimated a 65-year-old withdrawing at 6 per cent - the equivalent of £500 a month - would see their pension dry up by the time they were 92.
This age fell to 82 for those withdrawing at a rate of 8 per cent a year.
Ms Morrissey said that the optimum way to use your pension is to adopt a "natural yield approach" in which you take out an income based on how your investments have performed.
She added: "This will mean that the level of income you take will fluctuate so it can be a good idea to have a savings buffer to supplement your income during these times. We suggest having between one and three years of your essential expenses in an easy-access account. It's also really important that you invest in line with your risk appetite."
Another option is to adopt a "mix and match" approach by using a mix of SIPP drawdown and annuities in your planning, Ms Morrisey said. Annuities are investment products which pensioners can buy to pay them a fixed income for the rest of their lives.
"You can annuitise in slices and make use of higher annuity rates as you age while keeping the rest of your pension invested where it has the potential to grow," said Ms Morrisey.
Hargreave Lansdown pointed to data showing a 65-year-old with a £100,000 pension pot can receive up to £7,144 per year from a single life level annuity with a five-year guarantee, while a 70-year-old could get up to £7,885, and someone annuitising at 75 would get over £9,100 per year.
"There's also potential to boost your income further if you develop a health condition such as diabetes through an enhanced annuity," said Ms Morrisey. "Securing levels of guaranteed income throughout retirement can give you peace of mind that you can meet your day-to-day expenses while leaving a portion of your pension to grow."