Meanwhile the total value of money withdrawn from pensions climbed 22%.

The figures relating to the period April 2021 to March 2022, published by the regulator, showed that the number of pension plans accessed for the first time was 705,666, up from 596,080 in 2021/21.

The overall value of money being withdrawn from pension pots rose to £45,638m in 2021/22 from £37,432m the previous year.

Annuity sales rose 13% from 60,383 to 68,514, while more than 205,000 people entered drawdown in 2021/22, a 24% increase from the 165,988 in 2020/21.

Tom Selby, head of retirement policy at AJ Bell, said: “The rise in the number of people accessing their pensions for the first time will inevitably spark fears of savers raiding their retirement pots to make ends meet during the cost-of-living crisis.”

He said that all retirement income options saw a surge in popularity in 2021/22, including annuities.

He said: “Annuity sales have fallen off a cliff over the last decade or so, in part as a result of the paltry rates on offer and in part because of the popularity of the pension flexibilities introduced in 2015. Rising gilt yields has boosted the annuity rates insurers can offer, which in turn should make annuitisation a more attractive option.”

Other figures published by the regulator revealed that 40% of regular withdrawals were withdrawn at an annual rate of more than 8% of the pot value, down from 43% in 2020/21.

Meanwhile 33.4% of plans accessed for the first time in 2021/22 were accessed by plan holders who took regulated advice, up from 32.7% in 2020/21.

The number of DB to DC transfers continued to fall from 30,596 in 2020/21 to 26,619 in 2021/22. The number of firms that received a DB to DC pension transfer also fell from 63 to 57.