The new service intends to be the one-stop shop for advice on all financial matters.

A new financial guidance service, which will include advice on pensions, is being created by the government to replace three other services.

The government believes the new body, a single advisory service, will be more efficient but has not yet decided on the specifics.

It will provide advice on pensions, managing debts, and other money issues.

It will take on the roles of the Pensions Advisory Service and Pension Wise, which was set up in response to pension reforms last year.

The new service will also replace the heavily-criticised Money Advice Service (MAS) and will be paid for by a levy on financial services companies.

The new body as yet has no name and there is no timetable for its creation.

Pensions minister Richard Harrington said a single guidance body will be more efficient and will help consumers make the right financial decisions.

"We are committed to ensuring people can access the best free and impartial financial guidance possible," he said.

NOW: Pensions CEO Morten Nilsson said although it makes sense to have a single guidance service, he is concerned that rolling everything together will mean the service becomes a 'jack of all trades and a master of none.'

He said: "Pensions are complicated and it's important that the specialist service offered by organisations, such as The Pensions Advisory Service, isn't lost."

"With the freedom and choice reforms, pension savers have many more options to consider when they come up to retirement and face significant consequences if they make the wrong decision."

Nilsson also pointed out the new guidance body will be paid for by a levy on the financial services industry, which would require more consideration.

"While we support funding of these organisations in this way, it's important that the government considers and reviews all levies it imposes to ensure they are fair and proportionate - as ultimately these costs are passed onto savers," he said.

First published 13.10.2016

Lindsay.sharman@wilmingtonplc.com