Questions have been raised about how many advisers will accept clients using the £500 pension advice allowance.
Gary Smith, associate director Tilney Financial Planning, questioned whether it would be worth it for most financial advisers.
He said: “For some I do think it is a good idea but for those at the lower end of the spectrum, with pots below £50,000.
“At the moment some people are going blindly in to extract money from their pensions without understanding it.
“If you are giving advice you are taking on the liability and there is a duty of care to make sure that advice will be right, and some advisers might think they will only be able to give generic information.
“There is no way £500 would cover the costs of reviewing a defined benefit entitlement, analysing whether it should be retained or making a recommendation to transfer it.”
He said advice firms with minimum charges might steer clear of it, adding that £500 was below Tilney’s minimum fee.
David Hetherton, chief executive of Walker Crips Wealth Management, said the allowance was a "big step in the right direction" but also raised concerns.
He said: “While the £500 allowance is an important recognition of the value of financial advice, it may also create misconceptions.
“The fee is not necessarily sufficient to cover the cost of financial advice that many clients require.
“Additionally, advisers must now assess a much wider range of options following the introduction of pension flexibilities, and consider more complex strategies such as intergenerational wealth planning.
“It is unlikely that the £500 allowance will purchase fully rounded advice which dovetails holistically with clients’ other financial requirements."
Doubts about the allowance have already been reported by FTAdviser, with one adviser saying the scheme was similar to adviser charging via customer-agreed remuneration, which a number of providers do not allow for all policyholders.
This was later confirmed by HM Treasury, which has conceded that some savers will not be able to use it because some providers and trustees do not offer adviser charging due to low demand.
But the Treasury did say providers are routinely transferring clients to newer products which would mitigate this.
St James's Place, Openwork and Brewin Dolphin were asked to comment but did not respond.
Old Mutual Wealth declined to do so.
