A retail stockbroking firm believes a rise in ISAs taken out by those aged 55 and above shows investors have turned to alternative ways to save following the pension reforms.

Six months on from the introduction of the new rules by the Government, The Share Centre said ISA inflows had risen 13% compared to last year.

Richard Stone, chief executive of The Share Centre, said: “This demonstrates that investors are exploring different savings options and taking an active approach.”

He also pointed to comments from the Financial Conduct Authority’s acting chief executive Tracey McDermott to the Telegraph in which she said sales of annuities to pensioners have fallen by almost 90% since the freedoms were implemented.

Mr Stone said: “Furthermore, over the same period, the value of these accounts has increased by 22% which further supports the trend we have seen since 6 April when the changes were bought in.

“Instead of having to conform to traditional means of investing a pension pot at maturity, investors are now able to take control of funds and use vehicles such as ISAs with more flexible means of access.

“It is good to see investors are not being rash and using the opportunity to spend the monies which they can now access; rather investors are taking an active approach to their savings and using self-select accounts to manage their investments, within ISAs where possible.”

He welcomed the review of the tax treatment of pension contributions and withdrawals which could bring the pension regime into line with the ISA regime.

Although the possible to move to create ISA style pensions has attracted stern criticism from some in the industry, Mr Stone said he believes Government policy is “moving toward the ISA being the personal savings vehicle of choice”.