Savers are to receive free independent advice when given unfettered access to their pension pots from next year, the government has said.
The plan changes an aspect of the major liberalisation of defined contribution pensions unveiled in the Budget.
Critics had raised concerns a proposal to make providers give advice could see unsuitable investments recommended.
The guidance will now be through independent organisations, paid for by a levy on regulated financial firms.
It will it not always be face-to-face, as first indicated, but could be provided online or by phone.
Up until now most people in defined contribution schemes - where the final pension depends on the amount of investment returns - bought an annuity, a pre-set income for life, from a provider when they retired.
But from next April, savers will be able to use their pension money as they see fit, from the age of 55.
End Quote Tom McPhail Hargreaves LansdownIt is not going to be a deep and interactive process that gives you very personalised advice"
Chancellor George Osborne told the BBC: "This is going to be free and impartial guidance for millions of people who for the first time are going to have access to the money they've saved through their life.
"We're going to work with people like the Citizens Advice Bureau, with Age UK and others to make sure people get the best possible guidance and that this is genuinely impartial."
'Patronising'But analysts have cast some doubt over the nature of the advice on offer.
"It is going to be pretty superficial. It is not going to be a deep and interactive process that gives you very personalised advice. That would be very expensive, so it can't do that," said Tom McPhail, head of pensions research at Hargreaves Lansdown stockbrokers.
The Association of British Insurers, which represents a number of pension companies, said that there was an "aggressive timeline" to get the service up and running by April 2015.
Speaking to the BBC, Mr Osborne said the advice would be available face-to-face or over the internet or on the telephone.
Some have expressed concern that the new freedoms could mean people spending large sums early in their retirement and falling back on state support later.
But Mr Osborne said those concerns were unfounded.
"I think that approach is frankly a bit patronising to say to people you don't know how to spend your own money," he said.
"I take the view which is: you have worked hard, you have been responsible, you have saved for your retirement. You know better than anyone how you want to use that money. And if you have this new free and impartial guidance you can be directed towards the right choices for you."
'Vested interest'The Treasury carried out a consultation after the Budget in March and is now publishing the final rules for the changes.
It said the plans were "overwhelmingly well received", with savers backing greater freedom and choice, and the pensions and insurance industry ready to create new products better suiting individuals' needs.
Mr Osborne had acknowledged from the start that advice given to savers through the providers themselves might not be seen as impartial.
The guidance will now be delivered by organisations including the Pensions Advisory Service and the Money Advice Service.
The Treasury said: "The government wants to ensure that guidance is trusted by consumers, and the vast majority, including most of the financial services industry who responded, said that consumers would not trust guidance given by a person or organisation with a vested interest in selling a financial product or service."
The Treasury said about 300,000 people with defined contribution pension savings would be able to access them as they wish next April, although only the first 25% of money taken out of their schemes would be tax-free.
It also confirmed that the government would allow new pensioners in private sector defined benefit schemes to transfer into defined contribution pension schemes. But it decided to introduce two new safeguards - a requirement to take advice and new guidance for trustees of the existing schemes.
The pension reform plans, however, have led to some financial analysts questioning how the insurance industry will be affected by a potential fall in demand for annuities.
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