The government's defined ambition (DA) project faces "formidable obstacles", according to the Association of British Insurers (ABI).
In a wide-ranging report on saving launched on 9 July to coincide with the ABI's biennial conference the association pointed out what it believes are significant problems with DA.
It said: "While such products have the benefit of apparent simplicity to the employee, they also face formidable obstacles.
"If the intention is to reassure an employee that year-on-year contribution levels will always increase the fund in its early years, it will dictate an investment strategy that will probably be too risk averse to achieve the desired end result."
Aside from this, the ABI said that a guaranteed product "is always more expensive" in any case and would likely be too costly for customers to stomach.
The association added there are also several regulatory barriers to DA schemes.
It said the project could be scuppered because, in the light of the financial crisis, the Financial Conduct Authority's (FCA) is focused on avoiding policyholder detriment, while the Prudential Regulatory Authority (PRA) "worry about the solvency strains in parts of the continental European market created by guaranteed products operating in low interest rate environments".
The ABI said that the UK public is likely to reject DA because of its similarity to with profits products.
"The scepticism demonstrated towards with profits structures from both the new regulators is a reminder of the regulatory unease about savings frameworks where customers have limited power or access to the fund management techniques and structures being employed on their behalf," it said.
This comes after pensions minister Steve Webb has hinted that the Department for Work and Pensions (DWP) summer paper on DA is likely to focus heavily on collective DC (CDC) structures as a solution.
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