Between October and December 65,610 people made full cash withdrawals, the Financial Conduct Authority (FCA) said, a 42% fall from the previous quarter.
Rules allow those aged 55 and over to have full access to their pension pots with the first 25% tax free.
The FCA collects data from providers covering about 95% of the sector.
A total of 127,094 of pensions were accessed for the first time - either partially drawn down as an income or taken totally in cash in the final three months of 2015. This was a 36% decrease from the previous quarter.
The figures also showed customers aged 55 to 59 had the highest rate of withdrawals as a percentage of their pension pot. Some 11% of this age group took an income of 10% or more of their pot.
A Panorama investigation earlier this week found that some companies are exploiting new pension freedom rules to get access to pension savings.
Undercover footage showed one unregulated consultant giving advice and suggesting high risk investments.

The relegation-threatened Harriers took the lead when Keith Lowe headed in Ben Whitfield's corner, before Harry White drove in a second six minutes later.
Arthur Gnahoua added a third with a neat finish from inside the box after great midfield approach play.
Kristian Dennis pulled a goal back late on with a free-kick, but Macclesfield have now suffered four straight losses.
Kidderminster are now 23rd in the table, seven points from safety.

John Pat Cunningham was killed in Benburb, County Tyrone, on 15 June 1974.
The case has been reopened by the PSNI's Legacy Investigation Branch and a murder investigation has begun.
The suspect has been brought to Northern Ireland and is being questioned at Antrim PSNI station.

Sunday's blaze in Milton, Stoke-on-Trent, centred on a building containing recycled plastics.
The Environment Agency had previously said Hanbury Plastics ,the site operator, had never held an environmental permit.
The operation to tackle the fire has been scaled back but it is still burning in places.
See more stories from across Stoke and Staffordshire here
The blaze at the site, in Leek New Road, Milton, started around 08:00 GMT on 5 February.
The EA said the site's owners had been issued with legal notices to clear waste plastics.
Staffordshire Fire Service said it is helping police with its investigation.
Investigation Officer Ian Broadhead said: "We have worked closely with Staffordshire Police during the investigation and concluded that the fire was started deliberately."

The Wrestler star, 62, defeated Elliot Seymour - a former California Golden Gloves champion 33 years his junior.
Rourke sent Seymour to the canvas twice in the second round before the referee stopped the fight.
The Oscar nominated actor was an amateur boxer before finding fame in Hollywood movies such as 9 1/2 Weeks.
The organisers of the match said the boxers were receiving "large amounts of money" in fees but declined to give details.
"I'm very happy to be back to the boxing ring. Thank God for letting me do this", Rourke said ahead of his fight with 29-year-old Seymour.
He refused to go into detail about his motivations for returning to the ring, but told Russian TV boxing had "sort of saved me from myself".
The actor is reported to have lost more than 33lbs (15kg) for the fight, weighing in at 179.2lbs (81.3kg), the same as his rival.
Seymour is ranked 256th in the United States and before the fight with Rourke had one knockout and nine losses in 10 bouts.
Rourke returned to boxing as a professional in the 1990s and was undefeated in eight fights, with six wins and two draws.
However he suffered a number of facial injuries, which required surgery and changed his appearance.
In 2008 Rourke won a Bafta and Golden Globe for his role in the film The Wrestler, which told the tale of a former wrestling professional who decided to return to the sport.
He was also nominated for a best actor Oscar, but lost out to Sean Penn in Milk.
The appetite for people to take their pension savings as cash waned at the end of the year, according to the City watchdog.
[NEXT_CONCEPT]
Kidderminster scored three first-half goals to beat Macclesfield and make it three league wins in succession.
[NEXT_CONCEPT]
Police investigating the murder of a 27-year-old man shot dead by soldiers more than 40 years ago have arrested a 73-year-old man in England.
[NEXT_CONCEPT]
A fire at a recycling plant which was storing illegal waste was started deliberately, the fire service said.
[NEXT_CONCEPT]
Hollywood actor Mickey Rourke has won an exhibition boxing match in Moscow after returning to the ring for the first time in 20 years.