From April 2015, people will be able to take the entirety of their pension pot as a cash lump sum rather than buy an annuity.

Chancellor George Osborne has also promised “free, impartial face-to-face guidance” to all pension scheme members.

However, according to the 198 independent financial advisers (IFAs) surveyed by VouchedFor this “guidance” will not be sufficient as most people will risk either overspending or miss-investing.

VouchedFor estimates that around 100,000 people a year will require retirement advice from a financial adviser following the introduction of the new pension reforms.

It calculated that delivering an “adequate” amount of face-to-face advice to these people – through an IFA at a rate of £100 an hour – would cost the government £40m.

However, with £2trn worth of pension assets that could be taxed, VouchedFor said this a small price to pay.

Adam Price, founder of VouchedFor, said: “Providing people with control over their pensions remains a positive change if a system is put in place to ensure they are strongly encouraged to take the right advice before making any decisions.

“Free face-to-face advice could be offered through IFAs and we’re confident that there is the capacity and appetite to deliver this advice for a reasonable price.

“Equally, a telephone-based service could play a vital role in helping consumers understand their options and whether they need further advice.”