The Treasury figures, published a month before new rules come into effect, suggested 220,000 more people could be accessing their pensions flexibly from April than previously estimated.
Chancellor George Osborne (pictured) used last year’s Budget to announce the government would reform pension legislation to allow people to access their pension savings flexibly or withdraw a lump sum.
He estimated at the time 320,000 people each year would be affected.
The government introduced interim measures making it easier for people to access their pension savings flexibly in March last year.
It said sales of flexible pension products “have more than doubled” since.
The government also introduced a free at-retirement guidance service for consumers to help them navigate their choices.
Pension Wise will be delivered by Citizens Advice and The Pension Advisory Service.
A marketing campaign for the service went live earlier this month after a low initial take-up of a pilot with insurer Legal & General.
Last month Association of British Insurers director general Huw Evans, warned the government had not done enough to ensure a smooth start for the reforms.
“Critical pieces of the jigsaw are still missing and will not be in place in time,” he said as he called on the industry to come together to make the changes work.
Osborne said: “April 6 marks the start of new freedom both for consumers and the industry and I’m excited about the range of new products pension providers will be developing over the next few months and years.
“Our freedoms offer a real opportunity for consumers to think hard about what they need during the course of their retirement and the pensions industry to respond to that need.”
