The total number of pension plans accessed for the first time in 2021/22 increased by 18%, figures published by the FCA have revealed.

Its latest retirement income market data found that all products accessed saw an increase in 2021/22, with uncrystallised funds pension lump sums (UFPLS) seeing the biggest increase of 28%.

Drawdowns saw an increase of 24% and sales of annuities rose in 2021/22 by 13%. The overall value of money being withdrawn from pension pots rose to £45,638m in 2021/22 from £37,432m in 2020/21, a rise of 22%.

Forty per cent of regular withdrawals were withdrawn at an annual rate of over 8% of the pot value. Furthermore, 33.4% of plans accessed for the first time in 2021/22 were accessed by plan holders who took regulated advice. The number of DB to DC transfers continued to fall from 30,596 in 2020/21 to 26,619 in 2021/22, and the number of firms that received a DB to DC pension transfer also fell from 63 to 57.

Andrew Tully, technical director at Canada Life, said: “Today’s data shows that the pandemic paralysis evidenced last year has clearly worn off with pension access increasing by almost a fifth. All products are experiencing a boom in interest. Drawdowns and annuities have also clearly become more popular after experiencing a decline in interest last year.

“People are withdrawing money from their pensions in far greater numbers than last year, while this could be a reaction to the pandemic when people generally had less opportunity to purchase some of the big ticket items such as holidays and cars. On the other hand, this could be the start of people raiding their pensions to plug a gap in income or help younger relatives on to the property ladder.”

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