The introduction of the new pension freedoms in April 2015 marked a complete overhaul of the landscape by giving people approaching retirement unfettered access to their pension pots.

The freedoms gave anyone aged 55 and over the ability to access as much of their pension savings as they wished. The first 25% can be withdrawn tax-free and the remaining 75% is subject to the individual’s marginal rate of income tax.

Statistics published today by HM Revenue & Customs reveal that in Q2 2016 (April to June), 256,000 payments were made to 159,000 individuals. The total value of payments stood at £1.7bn.

The latest figures show a big jump from the previous quarter – 142,000 payments were made to 74,000 individuals at a total cost of £820m.

However HMRC explained that during this time, the industry had the option whether to report the statistics, while it became compulsory from April 2016.

Since the introduction of pension freedoms last April, the total value of payments stands at over £6bn across 772,000 payments to 360,000 individuals.

Tom Selby, senior analyst at AJ Bell, said: “This data provides the first real picture of the pension freedoms because reporting is now compulsory for all providers.

“The key measure of success is not the fact £6bn has been accessed, however – it is how the freedoms are utilised. Early data from the FCA suggests the majority of people are using the freedoms sensibly rather than blowing their pension on luxury holidays and sports cars.

“However, policymakers must remain vigilant to the risk people withdraw too much too quickly. Ultimately the purpose of a pension is to provide an income throughout retirement, so any spike in cash-outs would be concerning.

“The spectre of scams also looms large, and these figures drive home just how significant an opportunity the reforms represent for criminals. The Government must do all it can to protect savers, and a ban on cold calling for pensions should be introduced as part of a serious crackdown on fraudsters.”