The statistics, released on Friday, show an upturn in the number of people taking up long-term savings plans.

The head of life and pensions at ABI, Chris Kenny, said the figures “showed a positive change in people’s attitudes towards pensions and savings”.

Mr Kenny added: “Single premium life insurance is showing an 18 per cent increase since this time last year. That’s a real cause for optimism as people are once again returning to the savings market.”

But he went on to say the change is not consistent across all sectors, and so more action was needed to “consolidate and develop these encouraging trends.”

Sales in individual stakeholder pensions have continue to fall, while regular premiums to individual pensions showed their first rise since the middle of 2002.

Personal pensions and employer-sponsored stakeholders increased by six per cent, which represents a £28 million rise since the first quarter of 2003.

Mr Kenny spoke about the importance of raising awareness of saving schemes: “To build on this the Government need to help employers, provide greater incentives and maximise the opportunities that are just waiting to be exploited.”