The government's 'pot for life' proposals could result in negative outcomes for savers, the Association of British Insurers has warned.
The trade body is also concerned the changes would increase the burden on employers.
Yvonne Braun, director of long-term savings policy at the ABI, said: “Tackling the challenge of the rapidly growing number of small, inactive pension pots is vital so that it’s easier for people to keep track of their money.
"However, automatic enrolment through the workplace was primarily set up to help those who were not saving into a pension, many of whom were lower paid people, and we must not reverse its success."
In March's Budget, chancellor Jeremy Hunt reiterated the government's commitment to exploring a lifetime provider model for defined contribution pension schemes in the long-term.
The ABI commissioned WPI Economics to poll employers on how they would respond to the reforms to get a sense of their impact.
In the survey of more than a thousand employers, 65 per cent said it would be more difficult to assess the quality and value of a pension scheme for employees under the proposed reforms.
While 57 per cent said they would take less interest in the quality of the scheme that they would choose for the employees who remain with their workplace provider.
Of those who decided to switch providers, there were concerns about the outcomes for savers.
More than half of the employers surveyed said they would worry staff would make bad pensions decisions if they had to choose for themselves.
Likewise, 62 per cent expressed concerns the reforms would lead to their employees getting worse pension outcomes compared to just 10 per cent who disagreed there would be a negative impact.
The survey also showed the changes could create more work for employers - 63 per cent said they were worried the reforms would increase their payroll provider costs, while 28 per cent estimate that the reforms will require an additional five hours of staff time per month.
Braun added: "As this evidence shows, member choice would deliver few benefits, but risk throwing away the gains from auto-enrolment.
“Pensions dashboards will bring key improvements in data quality which could help to make more efficient, cheaper pension transfers a universal reality.
"It is important that this work is completed, and the impact understood, before any further reforms are added to the mix.”
tara.o'connor@ft.com
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