A Financial Planning firm has suggested the Money Advice Service and the Pensions Advisory Service may prove inadequate for retirees after the bodies were named today as key providers for the Government's pledge of free, impartial guidance.
The two independent bodies were named by The Treasury as it announced which organisations would provide the guidance promised in the Budget.
The Treasury's announcement today set out how the unprecedented changes to pensions should work in practice.
Kate Turner, head of advice policy at Towry, believes free face to face guidance will not be up to tackling complex personal retirement decisions.
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She said while the additional flexibility in pensions is welcome it also brings extra responsibility.
She said: "It's vital that retirement funds aren't just frittered away - everyone should have some form of long term financial plan in place.
"This needs to be tailored to each person's specific goals and ambitions, so individual personal financial advice is essential, especially given the large number of options available to those approaching retirement.
"This advice will often need to go beyond the level of detail provided by the likes of the Money Advice Service and the Pensions Advisory Service.
"To be effective, a financial plan must be developed early in life to make sure sufficient savings are in place to fund the retirement that you aspire to.
"Regular advice is also required during your retirement to review how you are taking your pension income, how best to use your remaining savings and the impact of any new legislation on your finances."
Ms Turner cited a Towry survey as evidence that people see the benefit of seeking expert advice.
It found that nearly two-thirds of over-50s who have taken financial advice over the past two years were glad they sought help when they did.
A further one in six people (16%) said they wished they had taken financial advice earlier in life.
Meanwhile, Aviva and the CBI welcomed the latest announcement on the pension reforms.
John Cridland, CBI director-general, said: "This new flexibility will give people the freedom to choose how to spend their retirement savings.
"Pension holders should be able to convert their defined benefits into cash, if that's based on sound financial advice and is in the interests of the wider scheme.
"We don't believe that there will be a significant flight from DB schemes, as some fear, because many people like the security of a reliable income so we don't expect a major impact on the bond markets."
Aviva chief executive Mark Wilson said: "The reforms out today are a welcome and sensible step to delivering the right framework to give our customers freedom and choice."
Chief executive of the Citizens Advice Bureau Gillian Guy said: "The right advice can safely bridge the gap between a lifetime's work and a happy retirement.
"The Treasury has taken important steps with the guidance guarantee to ensure that people will have impartial help making the right choice for their pensions."