The volume of advised decumulation sales has risen to its highest level since 2012, according to new figures.
FCA data released yesterday shows that there were 43,386 advised decumulation product sales in the second quarter this year.
The number is up 7,019 from sales in the first quarter of the year, where 36,367 were recorded.
The volume of advised decumulation product sales has sat around 37,000 a quarter since Q1 2013 and has only been above 40,000 twice since in the last five years.
Non-advised decumulation product sales also increased in Q2 this year, up 1,536 from Q1 to a total 22,025.
Aegon pensions director Steven Cameron says the data points to an upward trend for pension sales.
He says: “[That is] partly fuelled by auto enrolment and an equally marked downtrend in Isa sales. Many savers have been tempted away from Isas towards bank accounts paying higher rates of interest, which now also benefit from tax exemptions, but as interest rates start to creep up it will be interesting to see whether cash Isas find their way back into favour.”
The government quashed a recommendation from the work and pensions select committee to introduce default decumulation pathways in June.
The Department for Work and Pensions says such a move would undo the options opened by the pension freedoms by defaulting individuals into certain products.