The number of people choosing the policies has trebled since pension freedoms were introduced in 2015, according to provider Aegon.
The policies keep savings invested, while allowing retirees to withdraw an income.
But too many investors are choosing investments that are best for long-term strategies, rather than short-term income needs, Aegon has warned.
The difference in investment strategies between those still saving for retirement should be very different, but income drawdown customers are largely sticking to the same methods, according to the provider.
Retired savers are consequently exposing themselves to risk, which could hit savings without enough time to recoup losses/
With stock markets close to all-time highs, many pensioners could be at risk if sentiment changes and stocks crash.
Savers have now been urged to check their investments are suited to their circumstances.
Nick Dixon, Investment Director at Aegon, said: “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.”
Mr Dixon added: “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.”