Annuity sales soared by 20 per cent, by a total of £93.1m, from £466m to £599.6m in the second quarter of 2016, according to recent data from Equifax Touchstone.

The new research, which looked at more than 90 per cent of the UK’s leading life and pension companies, found that pension investments reached record highs in Q2, with £8.4bn of inflows, including transfers, up 6.2 per cent from the previous quarter.

Flexible drawdown investments also rose, as new investments and transfers increased by 15 per cent to £1.1bn from the first quarter, and up 40.9 per cent year-on-year.

Pension product transfers grew by 11 per cent, £407.5m across the board on the previous quarter.

Personal pensions, however, fell by 6.8 per cent on Q1 and new investments in individual stakeholder pensions plummeted by 28.6 per cent to £35.6m. As greater numbers of employees become part of auto-enrolment schemes, the popularity of person pension products has lessened.

Equifax Touchstone director John Driscoll, said: “It’s promising to see pension investments continue to grow strongly, despite market jitters in the run up to the UK referendum. There does however seem to be a stark divide in terms of investor types. SIPPs, typically used by wealthier investors, are showing strong growth, while investments into personal and individual stakeholder plans fell.

“Auto-enrolment is making very positive steps to get more of the UK population saving but the industry still has a lot of work to do to encourage people to use retirement products and make the most of the tax advantages they offer. The choice of products available and the new pension rules can be confusing for consumers to navigate, and advisers have a valuable role in supporting their clients through the maze.”

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