This follows the introduction of the new pension freedom rules introduced in April 2015, which allow individuals to withdraw tax-free funds from their pension pots.

The total paid out in Q2 2016 was £1.77bn, compared to £1.56bn in the equivalent quarter in 2016, with 256,000 payments to 159,000 individuals.

In Q2 2015, the first time individuals aged 55 and over were able to access their defined contribution pension pots under the pension freedom reforms, £1.77bn was drawn out of pensions by 159,000 individuals, according to HMRC figures.

The total value of payments since the launch of the pension freedoms is now over £6bn withdrawn by 465,000 savers.

The increase in reported payments may simply be a result of the reporting mechanism, according to HMRC. Initially industry reporting by pension providers was not compulsory, although it became mandatory from April 2016.

HMRC has not provided any analysis of the additional tax take arising from pension withdrawals.

All payments from an annuity or drawdown, and 75% of the amount of any uncrystallised funds pension lump sum, are taxable as income and the amount of tax to pay will depend on the amount of payments that are received in the tax year plus any other taxable income.

From 6 April 2015 savers could take money direct from your pension pot without having to buy an annuity or put the money into drawdown, and 25% of this sum will be tax free. This is called an ‘uncrystallised funds pension lump sum’ (UFPLS).

The government is also giving people the right to sell income from their annuities from April 2017, subject to agreement from their annuity provider.

The HMRC pensions drawdown data Apr 2015 - July 2016 is here